December 5, 2002	Thursday	Ramazan 29,1423

KARACHI, Dec 4: Stocks on Wednesday maintained their upward drive as investors made fresh covering purchases on selected counters aided by some positive developments both on the financial and political fronts.

However, the weekend rally was surprising for some analysts but the Shaukat Aziz’s visit to the KSE on Tuesday evening and rejoining of the Jamali government by the Muttahida Qaumi Movement (MQM) manifested it with a greater force and for some good reasons too.

“His emphasis to develop retail investor base to sustain the current rally if fully implemented, the market may not require external support to seek further higher levels”, analysts said.

Normally, long weekend sessions generate a lot of profit-selling as investors are not inclined to hold long positions amid fears that anything adverse could happen during the intervening holidays.

However, an air of optimism prevailed in the rings after the Tuesday’s visit of the economic adviser to the prime minister and his assurance to the brokers and members of the KSE to continue the financial and corporate policies of the previous government.

Shaukat Aziz’s firm assurance evoked a lot of interest on the blue chips despite a long weekend ahead owing to Eid holidays. Investors generally unload their extra load because of holidays ahead but on his assurance investors re-entered the market with fresh buying orders.

The reports that the MQM is again in the government fold also aided the sentiment as it ensures that the Jamali government will remain in place.

“Owing to his corporate policies, the KSE index has risen by 81 per cent, trading volume by 77 per cent and market capitalization by 56 per cent during the last about one year and investors have more than one reasons to rely on his promise in the trading hall of KSE and during holy month of Ramazan”, one broker said.

The rally has been more impressive in normal trading sessions but it was partly chained owing to four closure ahead on account of Eid holidays, he added.

The KSE 100-share index scored a fresh good gain of 38.93 points at 2,345.11 as compared to 2,306.18 on Monday as leading base shares tended further higher on active support.

Political uncertainty is still there but the market is expected to follow its own line of action based on some positive basic fundamentals rather than the perception of a weak government in the post-Eid holiday sessions.

Prominent gainers were led by PSO, Treet Corporation, Siemens Pakistan, Wyeth Pakistan and Unilever Pakistan, which posted gains ranging from Rs5.55 to Rs35, while losers were led by Morafco Industries, International Knitwear, Al-Abid Silk, Pak Reinsurance Co and Grays of Cambridge, off one rupee to Rs8.

Trading volume further rose to 195m shares from the previous 145m shares thanks to active buying in PTCL and Hub-Power.

Gainers held a strong lead over the losers at 200 to 56, with 59 shares holding on to the last levels.

Hub-Power topped the list of most actives, up by 60 paisa at Rs29.25 on 51m shares followed by PTCL higher by 20 paisa at Rs23.25 on 35m shares, Sui Northern, up by 90 paisa at Rs19.30 on 23m shares, FFC-Jordan Fertilizer, higher by 55 paisa at Rs8.50 on 15m shares and PSO, sharply higher by Rs5.55 at Rs181 on 13m shares.

Other actives were led by Fauji Fertilizer, sharply higher by Rs2.25 on 10m shares, Nishat Mills, higher 50 paisa on 6m shares, Adamjee Insurance sharply higher by Rs3.70 also on 6m shares, ICI Pakistan, up by 90 paisa on 4m shares and National Bank, steady five paisa also on 4m shares.

FORWARD COUNTER: PSO came in for strong support at the lower level owing to last couple of sessions massive battering and rose by Rs5.75 at Rs182.25 on 8m shares followed by Hub-Power, up by 55 paisa at Rs29.30 on 10m shares and PTCL, higher by 45 paisa at Rs20.95 on 7m shares.

FFC-Jordan Fertilizer followed them, higher by 50 paisa at Rs8.55 on 3m shares and Sui Northern Gas, higher by 85 paisa at Rs19.30 on 2.706m shares.

DEFAULTER COMPANIES: Active trading was again witnessed on this counter where Allied Motors came in for strong buying and ended higher by Rs1.50 at Rs12.75 on 47,500 shares followed by Pangrio Sugar, unchanged at Rs0.75 on 37,000 shares.

Suzuki Motorcycles also attracted good support and was marked up by 50 paisa at Rs9.20 on 15,500 shares, Saitex Spinning, easy 25 paisa at Rs0.95 on 16,000 shares and Metropolitan Steel, higher by Rs1.50 at Rs9 on 7,000 shares. Others were also actively traded.

DIVIDEND: Rafhan Maize Products second interim at the rate of 120 per cent, KESC, Tobacco International, Universal Leasing, all nil.