April 16, 2002	Tuesday	Safar 2, 1423

KARACHI, April 15: Stocks opened the week on a higher note as investors continued to build up long positions on selected counters amid predictions of a sustained bull-run.

A 1.5 per cent or 25.12 point increase in the index at the week’s opening session has reinforced the investor confidence that it could take a breather after crossing the psychological barrier of 1,900 points. It finally ended at 1,883.74, only a day away in a rising market.

As the deadline of referendum is approaching and the response the president is getting at his public meetings, investors more than sure of a status quo in economic policies during the post-referendum years.

An idea of the buying flurry may well be had from the fact that the market saw the breach of the circuit breakers in more than one shares as investors were out to have them irrespective of the asking prices.

Lever Brothers, which came out with a final cash dividend of 118 per cent (75 per cent interim already paid) was the leader, which rose by Rs.27 followed by Nestle MilkPak, BOC Pakistan, Fateh Textiles and Wyeth Pakistan, which also posted gains ranging from Rs.5 to Rs.20, more than the ceiling rate of Rs.1.50.

Incidentally, most of the circuit breakers were MNCs and in a way reflected the confidence of the foreign investors in the continuity of the current financial policies after the presidential referendum and the post-election era.

“It is pretty difficult to gauge the size of the foreign buying but the evidence of its presence could not be ruled out after the current price flare-up in most of the MNCs,” a member of the KSE says.

The revival of strong demand in the undervalued defaulting companies also points to a major future change in the outlook of the shares business. All these shares ruling was far below their face values, some of them available at 50 paisa against their face values of 10-rupee are daily being picked up in numbers and there could be some positive reasons, he adds.

The buying was broad-based and covered almost all the sectors under the lead of textiles, energy, banking and telecommunication sectors, which together gave the needed push to the hereto hesitant market.

“The president is sure to win the upcoming referendum as the public response to his public meetings indicates,” says a leading stock analyst adding that “lend support to the general perception that inflow of foreign aid could be sustained.”

Most of the leading floor brokers think that the index could take a breather after having breached the psychological barrier of 1,900 points as the developing political trends indicate.

“The fears of law and order situation owing to planned agitation of the political parties against the presidential referendum are fading each day, which means the deadline of April 30 will pass into history as a peaceful day,” observes a broker and that “could restore investor confidence in the market potential to rise further.”

Plus signs again dominated the list under the lead of Javed Omer, Adamjee Insurance, Ayesha Textiles, Pakistan Refinery, Crescent Steel, Cherat Paper and several others.

Losers were led by PICIC Bank, Shafiq Textiles, Pakistan Tobacco, Ghandhara, Singer Pakistan, Siemens Pakistan, Dawood Hercules, Rafhan Bestfoods and Pak Reinsurance, falling by Rs.1.10 to Rs.14.

Trading volume failed to keep pace with the increasing buying as bears stayed away apparently in a bid to sell at further higher levels. It fell to 111m shares from the previous 128m shares but the advancing shares maintained a strong lead over the losing ones at 260 to 70, with 46 holding on to the last levels.

Hub-Power led the list of actives, up 45 paisa at Rs.24.50 on 22m shares followed by the PTCL, higher 25 paisa at Rs.19.05 on 19m shares, ICI Pakistan, unchanged at Rs.57.40 on 7m shares, Sui Northern, firm by 20 paisa at Rs.14.30 on 6m shares and KESC, higher by 45 paisa on active support followed by reports of a financial package of Rs.115bn to make it more attractive for the prospective buyers.

Other actives included MCB, up Rs.1.15 on 5m shares, PSO, higher 65 paisa on 4m shares, ICP SEMF, higher Rs.1.80 also on 4m shares, Nishat Mills, up 30 paisa on 3.577m shares and D.G.Khan, higher 35 paisa on 3m shares.

FUTURE CONTRACTS: Speculative shares on the forward counter also ruled steady under the lead of MCB, which rose by Rs.1.40 at Rs.28.40, while other were marked up fractionally.

Hub-Power was again actively traded, up 35 paisa at Rs.24.55 on 3.328m shares followed by PTCL, firm by 25 paisa at Rs.19.10 on 1.470m shares.

DEFAULTER COMPANIES: Over a dozen shares came in for trading, most active among them being Allied Motors, up 35 paisa at Rs.5.90 on 12,000 shares, Suzuki Motorcycles, unchanged at Rs.3.10 on 11,500 shares, Crescent Spinning, up 25 paisa at Rs.4.95 on 10,000 shares and Qayyum Spinning, higher 25 paisa at Rs.6.65 on 8,500 shares. Gammon Pakistan rose by one rupee at Rs.19.50.