August 13, 2002	Tuesday	Jamadi-us-Saani 3, 1423

KARACHI, Aug 12: Stocks on Monday maintained upward drive as the strength of the blue chip sector spilled over into other counters after some of the foreign funds reportedly joined hands with the institutional traders to accelerate the pace of current run-up.

The KSE 100-share index surged by 27.06 points or 1.5 per cent at 1,842.82 after the volume figure soared to new recent peak level of 183m shares, about a half of which went to the credit of Hub-Power followed by market talk of 40 per cent final dividend in addition to an interim of 70 per cent.

“As I go by the performance of Hub-Power, a bulk of 75m share business in it goes to the credit of foreign buyers and it is a good omen,” says an analyst, adding “if that is true the market is now on the cross-road of writing a new chapter in its trading history.”

“It may not be the return of the prodigal son but a genuine event guided by the unfolding financial and political scenario, including the strong physical presence of the US here,” says another.

Adamjee Insurance again burst into activity on hostile takeover talk and breached through its circuit breaker at Rs43.10 on strong speculative activity.

During the last couple of sessions the index has recovered 60 points or 4.5 per cent followed by a sustained run-up and some analysts predict its next chart point could be 1,900 level, paving the way for its onward journey to the target of 2,000.

The board meeting of some leading MNCs, including Shell Pakistan (on Aug 20) and Hub-Power next month may not allow investors to lay their guards. A long spell of sluggishness has broaden their vision about the future share market outlook and the current lower levels are providing them an attractive bait.

The privatization of ICP Mutual Funds and the oil giant PSO and telecom volume leader PTCL may not be possible during the current or the next month as officially stated but it certainly on the agenda of the existing government.

“The next political government is expected to be in place after the Oct 10 elections,” says a broker, adding “how it views the privatization scenario will take sometime.”

But most analysts believe the coming government may go all out to sell all the state-owned units but will think twice before going for PSO or PTCL despite a massive offering.

However, a loud whispering about their sell-off keeps the market in a good shape and that is not a bad idea to generate speculative activity, they added.

“Essentially, the current rally is dividend-driven and lower levels of most of the blue chips have made it more convincing and how the market behaves after September or in the pre-election sessions, will demonstrate its relative strength,” says a leading stock broker.

Big gainers were led by Adamjee Insurance, which breached through its upward daily ceiling rate, Anwar Textiles, PSO, Lever Brothers and Nestle MilkPak which rose by Rs3 to Rs13.50.

They were followed by Treet Corporation, Pakistan Refinery, Hilal Flour Mills, Attock Refinery, Clover Pakistan, and Kohinoor Weaving, up by Rs2.05 to Rs3.15.

Losers were led by most of the blue chips, notably Pakistan Tobacco, Abbott Lab, Mehmood Textiles, Al-Qaim Textiles, Shafiq Textiles, Johnson and Philips, off one rupee to Rs1.90, Wyeth Pakistan, being leading off one rupee to Rs19, largest being in Wyeth Pakistan.

Trading volume showed a sharp expansion thanks to a massive activity in Hub-Power, rising to 183.140m shares from the previous 95m shares as gainers maintained a fair lead over the losers at 165 to 108, with 52 shares holding on to the last levels.

Hub-Power, closed higher by 85 paisa at Rs26.05 on 75m shares followed by PSO, higher by Rs4.60 at Rs147.40 on 26m shares, PTCL, up 35 paisa at Rs23m shares, National Bank, higher Rs1.45 on 11m shares and ICI Pakistan, up 60 paisa at Rs39.05 on 6m shares.

Other actives were led by Adamjee Insurance, higher by Rs3 on 5m shares, Sui Northern, steady by 20 paisa also 0n 5m shares, MCB, higher 60 paisa on 4.636m shares, Engro Chemical, steady five paisa on 4.595m shares and FFC-Jordan Fertilizer, up 10 paisa on 2.263m shares.

FUTURE CONTRACTS: Hub-Power also led the list of most actives on the forward counter and rose by 75 paisa at Rs26.10 on 15m shares followed by PSO, sharply higher by Rs4.40 at Rs147.65 on 5m shares, PTCL, up 40 paisa at Rs18.70 on 3.313m shares and ICI Pakistan, higher 55 paisa at Rs39.25 on 1.027m shares.

DEFAULTER COMPANIES: Trading on this counter was relatively slow as investors remained busy in the ready section. Allied Motors attracted stray support and rose by five paisa at Rs11.30 on 2,000 shares followed by Suzuki Motorcycles, firm by 10 paisa on 1,500 shares and Al-Asif Sugar, easy five paisa at Rs0.95 on 1,000 shares.

BOARD MEETINGS: Jahangir Siddiqui Investment Bank, Jahangir Siddiqui & Co on Aug 16; Polypropylene Products on Aug 17; Honda Atlas Cars on Aug 19; Shell Pakistan on Aug 20; and Smith Kaline & French Pakistan on Aug 24.