August 1, 2002	Thursday	Jamadi-ul-Awwal 21,1423

KARACHI, July 31: Stocks on Wednesday showed signs of recovery as short-term dealers and sundry speculators covered positions at the lower levels but the market leaders were again conspicuous by their absence. The KSE index recovered 8.49 points at 1,787.60.

Speculative issues on the cleared list on the other hand gave a relatively improved performance as heavy buying in PSO followed by reports of its fuel handling agreement with Wapda took the other pivotals, notably Fauji Fertilizer along with it in the plus column. Fauji Fertilizer also attracted good support in the backdrop of higher second interim at the rate of 30 per cent.

The extended bearish spell was at last broken thanks to dividend related short-covering in the pivotals but analysts doubted market’s ability to sustain the run-up in the absence of leading investors.

“The low volume reflects the absence of big ones, including the financial institutions, and until they are back any snap rally could falter halfway,” they said.

The KSE 100-share index managed to recover 8.49 points at 1,787.60 as compared to 1,779.11 a day earlier but the turnover figure at 47m shares did not match the performance of volume leaders such as PTCL and Hub-Power.

The second interim dividend at the rate of 30 per cent (25 per cent already paid) by the fertilizer giant Fauji Fertilizer and 20 per cent interim by Engro Chemical did evoke a lot of interest in their shares, enabling the market in part the prevailing sluggishness.

Earlier, all eyes remained centred around the BOC Pakistan whose board was in session and expecting a higher dividend from it, investors took position in it and the other allied shares.

Stock analysts said the current rally was chiefly driven by anticipatory buying ahead of corporate announcements from some of the leading companies, and as far as speculative buying or bargain-hunting was concerned it was at its lowest level.

“The market will remain victim of low volumes until the big ones decide to re-enter the market,” they said, but added “why they are out is difficult to fathom as the current low provides an active bait for any prospective investor.”

PSO led the market rise on active support triggered by some positive developments on its privatization process, while Fauji Fertilizer responded favourably to second interim dividend of 30 per cent and rose by Rs1.20.

Lever Brothers, one of the leading tea blenders, reacted positively to reports of duty-free import of tea from Bangladesh under the recently signed agreement and rose by Rs6.

Other notable gainers were led by Shell Pakistan, Clariant Pakistan, Noon Sugar, Sapphire Textiles, and Island Textiles, which rose by Rs1.85 to Rs4.50.

Losers were led by Tri-Pack Films, Millat Tractors, Abbott Lab, Shafiq Textiles, Security Papers despite a good dividend of 55 per cent and Pak Reinsurance, off one rupee to Rs21. Others fell fractionally.

Trading volume rose to 47m shares from the previous 35m shares as losing shares maintained a modest lead over the advancing ones at 93 to 100, with 75 holding on to the last levels.

The most active list was topped by PSO, sharply higher by Rs2.30 at Rs140.80 on 8m shares followed by Hub-Power, up 20 paisa at Rs24.40 on 7.470m shares, Engro Chemical, off 70 paisa at Rs59.70 on 5.425m shares, Fauji Fertilizer, up Rs1.20 at Rs50.05 on 5m shares and PTCL, steady 10 paisa at Rs17.75 on 4.965m shares.

Other actives were led by Chakwal Cement, lower 20 paisa on 3m shares, Sui Northern, up 20 paisa on 1.785m, ICI Pakistan, higher by 30 paisa on 1.440m shares, and MCB, steady by five paisa on 1.241m shares.

FUTURE CONTRACTS: Steady conditions were witnessed on the forward counter where Fauji Fertilizer and PSO showed gains ranging from Rs1.20 to Rs2.30 on active speculative support.

PSO led the list of actives, up Rs1.95 at Rs141.50 on 3.843m shares followed by Hub-Power, firm by 15 paisa at Rs24.50 on 4.029m shares and Fauji Fertilizer, higher by Rs1.15 at Rs50.20 on 0.905m shares.

DEFAULTER COMPANIES: Shares of 10 companies came in for alternate bouts of buying and selling but activity remained slow. Saitex fell by 10 paisa at 0.60 on 2,000 shares, Hafiz Textile was quoted unchanged also on 2,000 shares and Suzuki Motorcycle, easy five paisa at Rs3.65 on the same amount of shares.

DIVIDEND: Security Papers, final at the rate of 40 per cent, 20 per cent already paid and Sitara Chemicals, 55 per cent for the year ended June 30, 2002.