November 13, 2002	Wednesday	Ramazan 7, 1423

KARACHI, Nov 12: The PSO-led rally was well-sustained on the stock market on Tuesday as both the bears and the bulls joined hands to push its price further higher before the Nov 15 pre-bid meeting. The index recovered 11.89 points at 2,223.49.

“It was a positive development and could take the market out from the current impasse of the post-election fallout and the prevailing political uncertainty”, analysts hope.

Although the rally was not that impressive as it should have been but certainly encouraged fresh buying in PSO and other energy shares for good reasons too.

Broader market, therefore, resisted fresh decline on active short-covering in PSO followed by reports that the pre-bid meeting will be held between the bidders and the Privatization Commission officials to sort out the issues involved in its sell-off.

The other stimulating factor was market talk of a consensus government at the centre within the next couple of sessions, which will end the prevailing uncertainty.

The KSE 100-share index recovered 11.89 points at 2,223.49 as compared to 2,211.60 a day earlier as all leading shares finished higher recovered under the lead of PSO.

The Nov 15 pre-bid meeting between the bidders and the officials of the Privatization Commission will lead the way for the pre-bid conference possibly by the end of this month.

The bidders’ major concern is about the PSO receivables totalling about Rs9 billion from KESC and Wapda and its payables of Rs11 billion to the refineries on account of interest on late payments. The PC officials will satisfy the bidders on both these accounts for the smooth onward journey leading to its sell-off to the highest bidder.

On the political front, some positive signals from Islamabad about the formation of the new government at the centre also enthused investors as was reflected by active short-covering on selected counters.

“I bet Jamali from Balochistan a nominee of the Muslim League (Q) is being voted to the top slot”, claims a leading stock analyst “behind the scene consensus has been reached among the leading players”.

But some others said it is too early to say something about the formation of the new government as the rigid stands taken by some of the major political parties tell a different story.

However, the market needed fresh air to break the bears hold and the PSO pre-bid meeting provided the needed push.

Leading gainers were led by Al-Abid Silk Mills, Clariant Pakistan, Nestle MilkPak, Siemens Pakistan, which have been under pressure for the last couple of sessions, and Pak Reinsurance Co, up by Rs2.40 to 23.90.

Other good gainers included 4th ICP, Janana Demalucho Textiles, Pakistan Refinery, PSO, Shell Pakistan, Crescent Steel, Pak-Suzuki Motors, Abbott Lab, BOC Pakistan, Wah Noble Chemical and Glaxo-Wellcome Pakistan, up by Rs1.25 to 1.75.

Prominent losers included Dawood Hercules, International Industries, Morafco Industries, Ghani Glass and Unilever Pakistan, off Rs1.05 to 5.

Traded volume fell to 84m shares from the previous 93m shares but gainers forced a fair lead over the losers at 137 to 80, with 61 shares holding on to the last levels.

PSO came in for active short-covering and led the list of actives, up by Rs1.60 at Rs194.80 on 15m shares followed by Hub-Power, steady by 15 paisa at Rs26.35 on 13m shares, PTCL, unchanged at Rs21.35 on 9m shares, MCB, higher by one rupee at Rs32.85 on 7m shares and National Bank, up 35 paisa at Rs25.30 on 6m shares.

Other actives were led by Engro Chemical, up by 60 paisa on 6m shares, ICI Pakistan, higher by 35 paisa on 3m shares, Sui Northern Gas, firm by 35 paisa on 2.440m shares, ICP SEMF, up 60 paisa on 2.366m shares and Kohinoor Energy, higher by 85 paisa on 2m shares.

FORWARD COUNTER: PSO again came in for active support on news of pre-bid meeting and finished higher by Rs1.60 at Rs196.80 on 9m shares followed by Hub-Power, up by 15 paisa at Rs26.55 on 3m shares, Sui Northern, higher by 25 paisa at Rs16.80 on 2m shares and PTCL, easy five paisa at Rs21.50 on 1.576m shares.

DEFAULTER COMPANIES: Shares of only 11 companies came in for trading and ended mostly lower under the lead of Metropolitan Steel, which was marked up by one rupee at Rs9.50 on 29,000 shares followed by Suzuki Motorcycle, up by 15 paisa at Rs7.05 on 3,500 shares and Quice Foods, easy 10 paisa at Rs1.60 on 3,000 shares.