November 1, 2002	Friday	Sha’aban 25,1423

KARACHI, Oct 31: Stocks on Thursday posted fresh widespread gains as institutional traders and leading investors continued to build-up long positions on selected counters aided by perception of higher capital gains.

A massive activity of 103m shares in PTCL on heavy buying triggered by reports of 18 per cent increase in quarterly revenues evoked a lot of sympathetic buying on the other blue chips, creating boom-like conditions on the blue chip counters.

After hitting the day’s best level at 2,290.00 at one stage, the KSE 100-share index posted a fresh net gain of 26.05 points or 1.16 per cent at 2,278.54 as compared to 2,252.49 a day earlier.

Trading volume soared to 454m shares, a new record for the last couple of years but was still far below the previous single-session record of 571m shares. However, it does reflect the general perception about the future share business outlook and investor urge to inflate their stake though on selected counters.

The encouraging quarterly working results pouring in daily do not tell the whole story about the current price flare-up, says a leading broker adding there are some other positive developments, notably on the privatization front, which did not allow investors to stay away.

The reports that the US has indicated a debt write-off of $1 billion and an increase in textile import quota from Pakistan also enthused investors who tried to grab the floating stock of some high-profile issues.

“Investors are in search of high-yield stocks in a bid to realize quick gains, energy shares being on top of them ensuring a yield of 12 to 15 per cent”, analysts said adding “that is perhaps why the approval of the hostile takeover law did not worry them”.

What is important about the current sustained run-up is that both the bulls and the bears judiciously take part in daily proceedings, which keeps the statistical position of the market in order.

Board meetings of some other leading companies are also due during the next week and how speculators and bargain-hunters behave after them will demonstrate the strength of the current bull-run, brokers said.

Unilever Pakistan, Shell Pakistan Arif Habib Securities, Parke-Davis and Pakistan Reinsurance Co, were leading among the gainers, up by Rs5 to Rs13.40.

Other good gainers were led by 13th ICP, Javed Omer, Artistic Denim, HinoPak Motors, Millat Tractors, Engro Chemical, Fauji Fertilizer, Cherat Papers and Mitchell’s Fruits, which posted gains ranging from Rs2 to 3.90.

Losers were led Gatron Industries, National Refinery, Sarhad Cigarette, Dawood Hercules and Wyeth Pakistan, which suffered fall ranging from Rs3.45 to 8.60. Other losers included ICP SEMF, Shafiq Textiles, Pakistan Refinery, Bolan Casting and Sapphire Fibre, fell by Rs1.50 to 1.75.

In hectic trading, the advancing shares maintained strong lead over the losing ones at 165 to 108, with 62 shares holding on to the last levels.

PTCL topped the list of most actives, up 75 paisa at Rs21.80 on 103.294m shares followed by Hub-Power higher 55 paisa at Rs26.40 on 73m shares, Dewan Salman off 35 paisa at Rs16.70 on 43m shares followed by reports of omission of the dividend for the last year, Sui Northern Gas, up by 40 paisa at Rs18.35 ahead of its board meeting on 35m shares and PSO, higher by Rs1.60 on 24m shares.

Other actives were led by Engro Chemical, higher by Rs2.40 on 19m shares, MCB, steady by 70 paisa on 17m shares, Fauji Fertilizer, higher by Rs3 also on 16m shares, Southern Electric, up by Rs1.50 on 12m shares and National Bank, firm by five paisa also on 12m shares.

FORWARD COUNTER: Barring Nishat Mills and Dewan Salman, which fell by 20 and 35 paisa, all other speculative shares rose sharply under the lead of PSO, which rose by Rs1.60 at Rs197 on 9.212m shares.

But the top scorer was PTCL, which accounted for 12.360m shares, higher by 80 paisa at Rs21.95 on active buying followed by reports of 18 per cent increase in its quarterly revenues. Dewan Salman and Hub-Power were also actively traded. While the former fell by 35 paisa on selling followed by reports of passing over of the dividend for the last year ended June 30, 2002, Hub-Power rose by 45 paisa at Rs26.50 on 8.588m shares. Engro Chemical, Fauji Fertilizer and FFC-Jordan Fertiliser were also actively traded.

DEFAULTER COMPANIES: Quice Foods came in for strong speculative selling and fell by five paisa at Rs1.85 on 0.115m shares followed by Suzuki Motorcycles, lower 20 paisa at Rs7 on 37,500 shares and Schon Modaraba, off 75 paisa at Rs5.05 on 2,000 shares. Other attracted stray selling.

DIVIDEND: Pakistan Tobacco, interim at the rate of eight per cent, First Tri-Star Modaraba, interim one per cent, Dewan Salman, Transmission Engineering both nil for the financial year ended June 30, 2002.