March 22, 2002	Friday	Muharram 7, 1423

KARACHI, March 21: Stocks on Thursday staged a broad rally on heavy short-covering in the pivotals after a Lahore-based investor indulged in speculative manoeuvring in Hub-Power.

The central bank review of the economic indicators during the second quarter of the current fiscal did not generate any enthusiasm in investors’ mind as its future financial perceptions do not point to a robust economy during the remaining part of the year despite some sectoral improvements.

The volatile performance of the market reflects a continued tussle between the leading bulls and the bears to tilt the balance in their respective favour, but it appears to be a no-win situation. That is perhaps why the market rises only to fall by the next session.

It is, however, generally perceived that the current status quo could be shattered during the post-Muharram holiday trading sessions as bulls have corporate and financial reasons to be on the top.

The KSE 100-share index recovered 10.20 points to close at 1,884.26 as compared to 1,874.06 a day earlier as all the leading base shares, reflecting the strength of the broader market.

“Essentially, it was a speculative rally powered by heavy Lahore-based speculative buying,” says a leading broker, adding “there is nothing stimulating in the news to warrant panic buying but the party in trade must have its own reasons to inflate its portfolio at the current level.”

However, the general perception is that the index has already hit its bottom and the post-Muharram sessions could see an avalanche of buying orders both from the locals and foreigns.

“I don’t think the index could take a technical breather before breaching through the barrier of 2,000 points,” predicts a leading stock analysts at the Moosani Securities, adding “it is time to buy pivotals at the prevailing rates.”

The post-Muharram holiday sessions are expected to set the futures pattern of trading for the market as by that time most of the irritants on the law & order front will be removed, stock analysts at AHRL said.

Prominent gainers were led by Mari Gas, Attock Refinery, Grays of Cambridge, Treet Corporation, which is strong demand for the second day in a row on expectations of higher dividend and Wyeth Pakistan, which posted gains ranging from Rs3.05 to Rs8.

Other good gainers were led by N.P. Spinning after a cash dividend of 20 per cent, Sapphire Textiles, Sana Textiles, Pakistan Oilfields, Exide Battery and Millat Tractors, up by Rs1.50 to Rs3.

Losers were led by Pakistan Refinery, Bawany Air Products, Shafiq Textiles, Nestle MilkPak and Shell Pakistan, falling by Rs1.75 to Rs7.50, the largest decline being in Shell Pakistan. Adamjee Insurance, Lakson Tobacco, Pakistan Refinery, Bawany Air Products and Shafiq Textiles fell by Rs1.50 to Rs2.80.

Trading volume rose to 152 million shares from the previous 149 million shares as advancing shares forced a strong lead over the losers at 152 to 83, with 63 holding on to the last levels.

Hub-Power was actively traded, up 45 paisa at Rs25.45 on 59m shares followed by PTCL, firm by 15 paisa at Rs19.85 on 30m shares, Sui Northern, higher 25 paisa at Rs14.55 on 13m shares, PSO, off Rs1.25 at Rs164.25 on 11m shares and Japan Power, steady by 15 paisa at Rs4.35 on 6m shares.

Other actives were led by D.G. Khan, higher 80 paisa on 5.324m shares, ICI Pakistan, firm by 20 paisa on 4.811m shares, Dewan Salman, easy five paisa on 3.016m shares, Chakwal Cement, steady by 15 paisa on 2.895m shares and PIA, firm by five paisa on 2.579m shares.

FUTURE CONTRACTS: Turnover figure swelled to about 13m shares owing to active short-covering in Hub-Power and PTCL. The former rose by 35 paisa at Rs25.45 on 8m shares, while the latter rose by 10 paisa at Rs19.90 on 2.216m shares. PSO fell by 60 paisa at Rs164.90 on 1.320m shares. Others finished on a mixed note.

DEFAULTING COMPANIES: Allied Motors again came in for modest buying and rose 20 paisa at Rs4.75 on 6,000 shares followed by Suzuki Motorcycle and Crescent Textiles, off 25 paisa and up by the same amount at Rs1.75 and Rs4.75 on 3,500 and 2,000 shares, respectively.

DIVIDEND: New Jubilee Insurance, cash 30 per cent plus bonus shares of 15 per cent, Singer Pakistan, 7.5 per cent, N.P. Spinning 20 per cent, Ansari Sugar and Sakrand Sugar, both nil.

BOARD MEETINGS: Hamid Textiles March 22, Chaudhry Textiles, Crescent Star Insurance and Muslim Insurance March 26.