January 30, 2002	Wednesday	Ziqa’ad 15, 1422

KARACHI, Jan 29: The KSE 100-share index on Tuesday soared to two-year high level of 1,580 points powered by massive buying in PTCL and Hub-Power as bulls completely routed the bears, eying the index level of 1,700 points for the near-term.

The successive breach through three barriers of 1,300, 1,400 and 1,500 during the post-Afghan war weeks, reflects that investors may have found the cue for the things to come both on the corporate and economic fronts and are not inclined to miss the rising market. Both PTCL and Hubco hold 43 per cent weightage in the index.

Although its all-time peak level is still 2,662 established in mid-90s, it hit the best figure of 1,734 points on Jan 17, 2000 before falling below base level of 1,000 points owing to tariff cut row with the independent power producers, notably Hubco.

Heavy buying in energy and cement sectors highlighted the trading on the stock market as investors switched over to low-priced shares from the high-profile ones followed by predictions of big capital gains in the next couple of weeks.

The burst into activity of all the cement shares in unison, most of them ruling below their face values in the hope of large export orders from Afghanistan after the reconstruction work starts there provided the day’s feature adding further depth to stock trading.

After breaching through the 1,550 psychological barrier, the KSE 100-share index virtually raced toward its new target of 1,600 on strong speculative support aided by all around bullish indicators.

It finished with a fresh smart gain of 31.06 points or 2.5 per cent at 1,580.27 on an expanded volume of 219 million shares indicating the relative strength of the broader market.

Its current run-up could take it to 1,750 level if all goes well with the border situation and there is no other external developments possibly during the next couple of week, most brokers predict.

“Technical corrections here and there notwithstanding the developing economic scenario indicates that investors have made the right choice not to miss the rising market,” stock analysts at the W.E. Financials predict.

After making the support level of 1,550 point, the market out even beyond the bullish outlook and the prevailing buying euphoria is more genuine rather than speculative.

Apart from the advent of foreign buying aided by perceptions that the presence of the American in the region and reopening of the aid channels and a remote possibility of war with India, foreign investors are after the shares, having potential of capital appreciation.

“The low-priced cement shares seem to have assumed the role of trend-setter on hopes that they could be the major beneficiary after the reconstruction work starts in Afghanistan,” stock analysts at Ali Hussain Rajabali Securities said. All the shares rose in unison under the lead of D.G. Khan, which rose by Rs1.15 on large turnover.

Energy and fertilizer shares also attracted strong buying by the foreign funds partly because of predictions of higher earning partly to their lower levels. Shell Pakistan, whose board meets on Feb 7, also rose from the recent lows on active buying and so did PSO on news of early privatization.

Wyeth Pakistan again led the list of prominent gainers, up Rs17, making the tally over the last couple of sessions to Rs60, followed by PSO, Lever Brothers and Nestle MilkPak, up by Rs4 to Rs8.

Other leading gainers were led by ICI SEMF, Dadabhoy Cement, Fauji Cement, Pioneer Cement, Pakistan Tobacco, Shell Pakistan, Bolan Casting and Cherat Paper, which rose by Rs1.45 to Rs2.25.

Losers were led by Netover Leasing, Bawany Air, Murree Brewery, Dawood Cotton, International Industries and Al-Ghazi Tractors, which suffered fall ranging from one rupee to Rs2.90.

Trading volume rose to 219 million shares from the previous 212 million shares as gainers maintained a strong lead over the losers at 159 to 58, out of 256 actives.

The most active list was topped by PTCL, up 45 paisa at Rs17.70 on 63m shares followed by Hub-Power, firm by 15 paisa at Rs22.65 on 53m shares, Sui Northern, higher 60 paisa at Rs12.30 on 21m shares, PSO, sharply higher by Rs4.05 at Rs105.25 on 15m shares and D.G. Khan Cement, higher by Rs1.15 at Rs11.85 on 11m shares.

Other actives were led by Lucky Cement, firm by 40 paisa on 8.091m shares, ICI Pakistan, up 50 paisa on 5.785m shares, Engro Chemical, easy five paisa on 5.231m shares, FFC-Jordan Fertilizer, steady by 10 paisa on 4.800m shares and Japan Power, higher 45 paisa on 3.567m shares.

FUTURE CONTRACTS: PSO came in for renewed strong support on reports of its early privatization and ended with a fresh rise of Rs3.60 at Rs105.65 on 1.268m shares followed by ICI Pakistan, up one rupee at Rs46.50 on 66,500 shares.

Among the volume leaders, Hubco was leading, firm by three paisa at Rs22.76 on 3m shares followed by PTCL, higher 46 paisa at Rs17.88 on 2.314m shares.

DEFAULTER COMPANIES: Activity on this counter also picked up as 11 shares came in for trading on the perception of capital gains. Allied Motors accounted for 16,000 shares, up 20 paisa at Rs4.20 followed by National Modaraba, easy 15 paisa at Rs0.60 and Suzuki Motorcycle, easy five paisa at Rs1.15 also on 2,000 shares.

NATIONAL BANK: Its share, which passed through a modest reaction a day earlier, again rose in line with the general trend and ended at Rs15.05, up 45 paisa on 2.410m shares. It touched the lowest and the highest for the day at Rs14.45 and Rs15.30.