KARACHI, Aug 28: Massive buying in PSO ahead of its early sell-off again dominated the trading on the stock market on Wednesday as investors continued to build-up long positions in it for capital gains. The KSE index posted a fresh rise of 10.22 points at 1,935.93 after briefly breaching through the barrier of 1,950 points.

After having absorbed the pre and post-dividend positive impact on its share value, trading in PSO is now largely guided by news from the privatization front, says a leading stock analyst but it appears doubtful “whether or not the price flare-up is genuine or speculative”.

During the post-dividend sessions, it has risen by about Rs40.00 though reacted in late trading after crossing the barrier of Rs200 at one stage.

But on the other hand another market leader, Hub-Power came in for tactical selling ahead of its board meeting and conflicting perceptions about the size of final payout.

“I don’t think, it could match the widely speculative figure of 50 per cent”, says a leading broker “the best final from its management could be around the figure of 35 per cent”.

The index should have risen sharply higher but large foreign unloading in Hub-Power contained it as it has about 12 per cent weightage in it and is capable of influencing its trend either-way.

The profit-selling in it is linked to its board meeting in London on Sept 4, as leading investors are inclined to push its share value lower and then to buy at the lows both for capital gains and expected higher final dividend.

“Partial offloading of PSO and PTCL shares may not be possible by the next month but bargain-hunters and speculators made this look so at least for the near-term, triggering buystops from all and sundry”, says a leading broker commenting on the persistent spectacular rise in the share value of PSO at the current inflated level.

The liquidation of a portion of a state stake in mega and massively capitalized issues such as PTCL and PSO needs a lot of groundwork and strategic buyers, he says adding “both are lacking at this stage”.

Moreover, owing to proximity of the national elections on Oct 10, foreign investors will prefer to await the outcome of the polls and the financial perceptions of the winning parties before going for the sell-off.

Reports of unloading of another five per cent shares of National Bank at a discount of 10 per cent did not work against the ruling price of its share as speculated by analysts but rather it rose by 15 paisa at Rs23.75 on over 6m shares.

Plus signs dominated the list under the lead of PSO and Parke-Davis, which posted gains ranging from Rs8.40 to Rs16. They were followed by 4th, 9th and 13th ICP Funds, Central Insurance, IGI Insurance, Sapphire Fibres, Lakson Tobacco, Shell Pakistan and Lever Brothers, up Rs1.65 to Rs8.05. Leading losers were led by Habib Arkady on post-dividend selling, National Refinery, Balochistan Wheels, HinoPak Motors, Engro Chemical, Packages, Pakistan Reinsurance Company and Wyeth Pakistan, off Rs1.10 to Rs15 each.

Trading volume soared to 301m shares from the previous 124m shares as gainers held a comfortable lead over the losers at 118 to 109, with 72 shares holding on to the last levels.

The most active list was again topped by Hub-Power, lower 20 paisa at Rs28.45 on 107m shares followed by PTCL, up 35 paisa at Rs19.45 on 74m shares, PSO, higher by Rs8.40 at Rs196 on 54m shares, ICP SEMF, up 75 paisa at Rs28.20 on 12m shares, Sui Northern Gas, unchanged at Rs15.35 on 8m shares and Engro Chemical, off Rs1.35 at Rs63 on 7m shares.

Other actives were led by D.G. Khan Cement, lower 10 paisa on 8m shares, Adamjee Insurance, easy 15 paisa on 3m shares and ICI Pakistan, lower 20 paisa on 2.922m shares.

CLEARED LIST: Fresh sharp rise of Rs6.20 and Rs9.50 in PSO on 4m and 3m shares in both the maturing August and the distant September settlements again provided the day’s highlight. But on the other hand Engro Chemical fell by Rs1.52 and one rupee for both the settlements at Rs63.05 and Rs62.50 on modest turnover. Fauji Fertilizer also eased by one rupee at Rs50.50.