October 18, 2002	Friday	Sha'aban 11, 1423

KARACHI, Oct 17: Stocks on Thursday maintained upward drive on strong buying in most of the pivotals followed by reports of phased pullout of Indian troops from the international borders along Pakistan.

The allaying of fears of war with India, one of the immediate worries of the market was well-received by the investors as was reflected by 27 points rise in the KSE 100-share index, which soared to 2,109.00 at one stage.

Although final closing was well below the day’s best level, it finished with an added gain of 10.55 points at 2,092.79 as late selling clipped a good part of mid-session gains.

The highly erratic movements of the index reflect that even the leading investors, including the financial institutions, are not inclined to take long positions owing to post-elections scenario.

“Until a consensus government is in place in the centre, the current uncertain outlook will dominate the trading,” brokers said, adding “the situation appears to be fraught with high risk in view of the split political mandate.”

Although post-elections uncertainties were there, the fading of fears of war with India reinforced the investor perceptions that future sailing on the market could be pretty smooth, analysts said.

Some other analysts fears divergent stand taken by some of the leading winning political parties in regard to formation of a coalition government at the centre could take away the benefits of Indian peace moves.

Pakistan Reinsurance Company remained in strong demand since it has announced a good payout last week and was marked further higher by Rs65.20. It shares has during the last couple of sessions has gained about Rs150. Nestle MikPak was among the other leading gainers, up by Rs14 at Rs209.

HinoPak Motors, Merit Packaging, Ismail Industries, Kohat Cement, Cherat Cement after reports of its merger with Cherat Electric, IGI Insurance and Wyeth Pakistan came in for active support and finished with fresh gains ranging from Rs1.75 to Rs7.

Speculative squeeze was further intensified on the PSO shares on the forward counter as some “big ones” are cornering its floating stock for good reasons. It was traded further another 20m shares in addition to Wednesday’s 25m shares.

Rafhan Maize Products and Unilever were leading among the losers, off Rs7.00 and 8.85, respectively, followed by Shafiq Textiles, Pakistan Tobacco after the announcement of below market interim dividend at the rate of 80 paisa per share, Orix Leasing and Siemens Pakistan, which fell by Rs1.40 to Rs6.30.

Trading volume soared to above 200m share mark at 211.385m shares as advancing shares maintained a fair lead over the losers at 170 to 104, with 50 shares holding on to the last levels.

Hub-Power came in for strong support and finished further higher by 20 paisa at Rs24.65 on 55m shares, followed by PTCL, firm by 10 paisa at Rs19.95 on 25m shares, National Bank, higher by 90 paisa at Rs23.95 on 23m shares, Chakwal Cement, firm five paisa at Rs2.45 on 14m shares, MCB, up 25 paisa at Rs29.15 on 12m shares, ICI Pakistan, off 25 paisa at Rs41.70 on 5m shares and Adamjee Insurance, up 25 paisa at Rs44.70 on 4m shares.

Other actives were led by Fauji Fertiliser, up 15 paisa on 10m shares, Sui Northern, steady by 10 paisa on 9.212m shares and Engro Chemical, lower 10 paisa on 7.176m shares.

FORWARD COUNTER: PSO again came in for strong support and finished higher by 75 paisa at Rs160.70 on 20m shares followed by Hub-Power, up 15 paisa at Rs24.65 on 11m shares, PTCL, firm by 10 paisa at Rs19.95 on 3m shares and Sui Northern, steady by five paisa at Rs15.90 on 1.374m shares.

DEFAULTER COMPANIES: Suzuki Motorcycle came in for active selling at the inflated level and fell 75 paisa at Rs7.75 on 0.119m shares followed by Metropolitan Steel, sharply higher by Rs1.50 at Rs5.85 on 50,000 shares, Ghandahara Industries, unchanged at Rs1.50 on 30,000 shares and Quice Fodds, up five paisa at Rs1.30 on 17,500 shares.

DIVIDEND: Trust Modaraba, cash five per cent, Pakistan Tobacco, interim at the rate of 80 paisa per share for nine months ended Sept 30, 2002.

BOARD MEETINGS: PNSC, Sigma Leasing, Sitara Energy on Oct 21; Pak Leather-Up, Dynea Pakistan on Oct 22; Askari Leasing, Crescent Steel, Attock Refinery, Investment Corporation of Pakistan, Buxly Paints, BSJS Balanced Fund, International Multi-Leasing, Shabbir Tiles, Habib Arkady, Union Leasing on Oct 23; Century Papers, Shell Gas LPG, Attock Cement on Oct 24; Shell Pakistan, Atlas Battery on Oct 25; Capital Asset Leasing, Murree Brewery on Oct 25; Askari Bank on Oct 26; Pakistan Refinery and Ferozsons Lab on Oct 28.