KARACHI, Oct 30: Stocks on Wednesday remained in a bullish frame of mind boosted by massive short-covering followed by reports of higher interim profits announced by PTCL and Unilever Pakistan.

Trading volume soared to 357m shares as the KSE 100-share index resumed its upward journey after initial setback to finish further higher by 38.06 points at 2,252.49.

The market virtually witnessed a scramble for some leading shares after the announcement of higher earnings as investors lured by handsome capital gains were not inclined to sit on the sidelines.

“I don’t think bears will be able to reverse the course of the index before it breaches through its next barrier of 2,300 point,” predicts a leading analyst.” All the supporting factors including political and interim results are combining to push it to that level.”

That could well mean, in financial terms, “it has gained about 40 per cent during the last one year, lifting the total market capitalization to Rs.560bn or $1.5bn.”

“It appears to be a judicious blend of both strong institutional and foreign buying and when both re-enter though on selected counters there has always been a significant change in the market psychology,” brokers said.

The details about the sell-off of mega issues such as PSO and PTCL shared with the KSE members by the chairman of the Privatization Commission yesterday seemed to have encouraged investors to take new positions on these counters.

But what seems to have boosted the market sentiment despite political standoff was the perception that the government is firm on its privatization agenda irrespective of the changes at the centre, brokers said.

Reports of higher corporate earnings by some leading companies also generated a good bit of short-covering and speculative buying on the relevant counters.

Third quarter post-tax earnings by the consumer giant, Unilever Pakistan at Rs.522m, showing an increase of 60 per cent and Earning Per Share (EPS) at Rs.39.3 (face value Rs.50) reinforced the investor perceptions about the higher first quarter earnings by the other giants, notably the PTCL.

The PTCL board, which met on Oct 30, in Islamabad also announced higher first quarter revenue at Rs.16.550bn, showing after-tax profit of Rs.750m and EPS at 98 paisa as compared to previous 83 paisa. Both the announcements were well-received in the market as was reflected by heavy turnover and sharp rise in their share values. Parke-Davis followed them on an identical reports about profits.

Top gainers were led by Dawood Hercules, Siemens Pakistan, Pakistan Reinsurance Co, Parke-Davis and Wyeth Pakistan, up by Rs.4.50 to 47.60, while losers were led by IGI Insurance, Noon Sugar, Security Papers, Sarhad Cigarette and Unilever Pakistan, off by Rs. 1.45 to 6.00.

Trading volume rose to 357m shares from the previous 200m shares as gainers maintained a strong lead over the losers at 186 to 96, with 69 shares holding on to the last levels.

Hub-Power topped the list of actives, up 55 paisa at Rs.25.85 on 76m shares followed by PTCL, higher 50 paisa at Rs.21.05 on 58m shares, Sui Northern Gas, up 90 paisa at Rs.17.95 on 44m shares, Dewan Salman, which showed a modest profit, steady by 20 paisa at Rs.17.05 on 36m shares, PSO, higher by Rs.3.90 at Rs.193.90 on 26m shares, National Bank, up 45 paisa at Rs.25.95 on 11m shares, MCB, higher 45 paisa at Rs. 32.05 on 10m shares and ICP SEMF, firm by 25 paisa at Rs.35.70 also on 10m shares.

Other actives were led by FFC-Jordan Fertilizer, unchanged on 17m shares, KESC, up 15 paisa on 9m shares, and some others, which also ended higher.

CLEARED LIST: Speculative issues on the forward counters also finished higher under the lead of Hub-Power on strong foreign buying, up 55 paisa at Rs.26.05 on 14m shares followed by PSO, up Rs.3.75 at Rs.195.40 on 11m shares and PTCL, higher 40 paisa at Rs.21.15 on 6.501m shares.