Stocks maintained an optimistic outlook during the holiday-shortened week, as leading investors were not inclined to entertain the bearish ideas and continued to make extensive short-covering on blue chip counters, amid predictions of a sustained bull-run to the index level of 2,500 points.

The visit of former finance minister, now Adviser to the PM, Shaukat Aziz to the stock exchange and his assurance to continue with the economic and fiscal policies of the previous government evoked a lot of buying interest, despite a long weekend ahead owing to Eid holidays.

The KSE 100-share index was quoted at 2,345.11 points as compared to 2,285.87 points a week earlier, breaching through the barrier of 2,300 points and settled well above it despite weekend selling.

The lure of capital gains at the lower level in selected sectors was there but those who could peep through the future remained conspicuous by their absence.

“The political situation at this stage is fraught with high risks”, one broker said, “until the perception of a stable government in the centre is established only fools could look forward for a bull market”.

“The current positive outlook appears to be the outcome of an abortive bid by those who have purchased certain share at much higher rates and are trying to keep the market on higher side”, another said adding, “whether or not they could bail them out from the current impasses is literally linked to the positive news from Islamabad”.

That is perhaps why stocks gave another improved performance earlier as heavy institutional buying in the PTCL and some other pivotals again took the entire market along with it in the plus column amid active trading. The KSE index again crossed the barrier of 2,300 points at 2,306.

The opening was, however, a bit bearish in the backdrop of the Indian threat of a fourth war, if the alleged cross-border terrorism was not stopped. But soon investors realised that after the withdrawal of troops from Pakistani borders, the recent threat may not have any relevance to ground realities and resumed their covering operations.

Bulk of support, however, remained confined to leading blue chips as investors were not inclined to take even a calculated risk ahead of a long week-end on account of Eid holidays.

Although, political uncertainty is there, the former finance minister, now advisor to the prime minister on economic affairs, Shaukat Aziz’s visit to the KSE on December 3, evoked a lot of interest in leading shares, enabling the market to wipe out the initial losses.

“His visit could refuel bulls owing to his initiatives on the on-going macro economic and privatization fronts and hence a bulls welcome”, one analyst said.

“I don’t think the rally was genuine, and was initiated perhaps to greet the PM’s Advisor with a bullish market”, one broker said. “The former finance minister has done a lot of good to the investing people during his last three year’s tenure”.

The perception that he may give some positive cues to the things to happen in future on corporate front enthused the investors to invest at the current lows on blue chip counters.

Current favourites, such the PTCL, the Hub-Power, the National Bank, the Sui Northern, the energy and fertiliser sectors were in forefront of those, which attracted a lot of covering purchases. Most analysts, however, are not inclined to predict about the future market outlook until the political government was fairly stable and there was no danger of its destabilization by any faction of the split mandate.

“Much will depend on the on-going talks between the MMA (religious parties and the PML-Q on sharing power in the centre and if they succeed, the perception of a stable government in the centre would be achieved”, they added.

But until then the investors would like to play safe as is being reflected by the lower daily volumes for the last couple of sessions.

Leading gainers were led by the Millat Tractors, the Treet Corporation, up Rs7.50 and 5.15. Other good gainers were led by the Cherat Papers, the Ferozsons Lab, the Kohinoor Raiwind, the Bolan Casting, the Al-Ghazi Tractors, the Pak-Suzuki Motors, the Otsuka Pakistan, and Adamjee Insurance.

The Unilever Pakistan and the Wyeth Pakistan were leading among the losers off Rs20.50 and 27, respectively. The Atlas Honda, the Metropolitan Bank, the BOC Pakistan, the Pakistan Reinsurance Co, and others fell, fractionally.

The volume fell sharply as the trading week was confined to only two sessions because of Eid holidays from December 5 to 7, owing to a long week-end ahead. The investors mostly played safe and did not expose themselves to undue financial risks.

The bulk of the business remained confined to the PTCL and the Hub-Power followed by the Sui Northern, the PSO, the Adamjee Insurance, the National Bank, the Fauji Fertiliser, the Nishat Mills, the ICI Pakistan, the FFC-Jordan Fertiliser and several others.

FORWARD COUNTER: Barring the PSO, which came in for active selling and sharply fell, all other speculative shares ended higher under the led of the PTCL and some others.