September 27, 2002	Friday	Rajab 19, 1423

KARACHI, Sept 26: Stocks on Thursday staged a snap rally as leading institutional traders made active purchases at the lower levels apparently sending signals to the bears that it is now the turn of a bull market. The index again crossed the barrier of 2,000 points at 2,013.85.

Bears, who were planning to cash in on the Wednesday’s terrorist killing after extending the bearish trend, were a bit disappointed as leading bulls did not allow them even a technical breather.

The KSE 100-share index soared above the barrier of 2,000 point at 2,013.85 as compared to 1,995.31 a day earlier thanks to heavy buying in most of the leading base shares.

The snap recovery reflects that bulls are in no mood to leave the field open for the bears and have virtually challenged them to return to the rings but leading among them stayed on the sidelines.

“All roads now lead to a robust and sustained rally well above the 2,000 point index level,” most leading analysts predict, adding “the bait of sell-off of some mega state-owned units during the next three months, including PSO, PTCL and Pakistan Oilfields, above market expectations dividend and industrial pick up, all point to a sustained bull-run.”

The Wednesday’s terrorist killing of seven persons is not a minor event prior to the national elections and could have triggered fresh panic selling but investors seem to be more guided by the positive market factors rather than the law and order situation.

Technical corrections may follow price flare-up but the pre-election trading weeks are expected to set new record both in terms of trading volumes and the index level, floor brokers predict.

The interesting feature is that some of the leading bears have also joined the rank of active bulls and they together could work miracles in keeping the investors interest alive, they added.

What was more important was that most of the leading investment shares, including ICP mutual funds on higher dividend and undervalued modaraba shares after the permission to issue term finance certificates also came in the main stream and rose modestly higher amid active trading.

Siemens Pakistan was leading among the gainers, up Rs7.50 on strong support after the announcement of 30 per cent final cash dividend and 250 per cent bonus shares, while Wyeth Pakistan rose by Rs30 on reports of shortage of floating stock.

Other good gains were led by 9th ICP, Adamjee Insurance, Dilon, Gatron Industries, Noon Sugar, Fazal Textiles, Pakistan Oilfields, Pakistan Refinery, Shell Pakistan, General Tyre, HinoPak Motors, Clariant Pakistan, Aventis Pharma and Treet Corporation, which posted gains ranging from Rs2 to Rs4.75.

Attock Refinery continued to attract post-dividend selling and posted a fresh loss of Rs3.95, while Grays of Cambridge, which came out with a good dividend of 110 per cent fell by Rs15.80. Abbott Lab, Nestle MilkPak, Mitchell’s Fruits, and Dawood Hercules were others among the losers.

Trading volume fell to 153m shares from the previous 169m shares but gainers forced a strong lead over the losers at 199 to 81, with 77 shares holding on to the last levels.

After several lean sessions, Hub-Power swung into activity, up 35 paisa at Rs24.15 on 39m shares followed by D.G. Khan Cement, steady 15 paisa at Rs12.50 on 31m shares, PSO, higher by Rs1.45 at Rs195.85 on 17m shares, PTCL up 15 paisa at Rs20.15 on 13m shares, Engro Chemical, higher 50 paisa at Rs62.80 on 8m shares and MCB, lower 15 paisa at Rs27.25 on 5m shares.

Other actives were led by Adamjee Insurance, up by Rs3 on 7m shares, KESC, up 30 paisa on 6m shares, Fauji Fertiliser, higher 80 paisa on 3m shares and Lucky Cement, up 25 paisa on 2.408m shares.

FORWARD COUNTER: PSO, PTCL and Hub-Power remained in active demand and finished modestly higher amid large turnover. PSO rose by Rs1.30 and Rs1.40 for both the settlements at Rs195.60 and Rs158.90 on 4.205m and 1.446m shares, respectively.

Hub-Power was marked up by 31 paisa for both the contracts at Rs24.06 and Rs24.25 on 9.915m, and 4.163m shares, while PTCL rose by five and one paisa for both the contracts at Rs20.10 and Rs20.27 on 1.366m and 0.994m shares, respectively.

DEFAULTER COMPANIES: Custodian Modaraba again came in for active support aided by reports that this sector has been allowed to issue TFCs and rose by 50 paisa at Rs4.50 on 11,000 shares followed by Metropolitan Steel, firm by 10 paisa at Rs2.50 on 3,000 shares and Allied Motors, easy 40 paisa at Rs9.55 also on 3,000 shares.

DIVIDEND: PICIC, cash 15 per cent and bonus shares 18.5 per cent; Pakistan Synthetics 20 per cent; Crescent Steel, cash 30 per cent; Ferozsons Lab, cash 25 per cent and bonus also at the same rate; Transpak Corporation cash 50 per cent; Dawood Leasing five per cent (interim five per cent); and Pak Datacom 10 per cent.