April 3, 2003	Thursday	Muharram 30, 1424

KARACHI, April 2: Stocks on Wednesday staged a broad recovery followed by heavy short-covering in the pivotals at the lower levels amid predictions that bulls are back in the arena after the recent sluggishness. The KSE 100-share index recovered 48 points at 2,754.01.

Massive activity of 107m shares in Hub-Power was the session’s notable feature as leading institutional traders took long positions in it ahead of its board meeting and expectations of higher final dividend. It has already paid an interim dividend of 33 per cent, and analysts say the final could be around 40 per cent or slightly below.

Other leading energy shares and most of the MNCs were also actively traded and ended with smart rallies amid active trading.

The KSE 100-share index rose by 47.85 points or 2.5 per cent at 2,754.01 compared to 2,706.16 a day earlier as all the leading shares remained centre of the activity throughout the session under the lead of Hub-Power boosted apparently by reports of a higher dividend.

Traded volume swelled to 278m shares from the previous 134m shares bulk of which went to the credit of pivotals, notably Hub-Power and PTCL and some others. The former alone accounting for 107m shares.

“Reports that the KSE is the best performing market in the world seem to have again lured the investors back in the rings,” analysts said, adding cash heavy financial institutions have limited options to replough their surplus liquidity in the shadow of Iraq war.”

The high yielding stocks and those having potential to grow remained centre of the activity as institutional traders were after them to realize quick gains.

“There are not many supporting news for the snap rally, but bulls coin one to lure others to ride the bandwagon and that what appears to be the mainstay of the current bull-run,” brokers jokingly said.

Financial players who are apparently playing on short-term basis to realize quick gains appear to be a little worried over the outcome of the Iraq war as their chief concern is to invest surplus funds in gainful channels.

“There is no bar to get out of the market when the financial scenario is not that encouraging,” one big player says. “The share business is now the only mode of investment where one could make profits after playing the game judiciously and swiftly.”

The market may not be following the objective background news, but the massive surplus liquidity has its own way of working and that is visible in the market’s outstanding performance in not a very supporting scenario, he said.

Advancing shares forced a strong lead over the losing ones under the lead of Nestle MilkPak, Glaxo-Wellcome, Treet Corporation, Wyeth Pakistan and Unilever Pakistan, up Rs4.95 to Rs26. Other good gainers included Blessed Textiles, Gatron Industries, Burewala Textiles, Attock Refinery, Shell Gas, Shell Pakistan, Al-Ghazi Tractors, Abbott Lab, Clariant Pakistan, BOC Pakistan, and Tri-Pack Films, up by Rs2 to Rs4.60.

Losers were led by Pakistan Services, Pakistan Reinsurance Co, Javed Omer, Lakson Tobacco, EFU Life, Central Insurance, Pakistan Services and Siemens Pakistan, off Rs1.45 to Rs5.

Trading volume rose to 278m shares as gainers outpaced losers by a big margin of 214 to 76, with 43 shares holding on to the last levels.

Hub-Power topped the list of most actives, sharply higher by Rs1.70 at Rs35.80 on 107m shares, PTCL, up 75 paisa at Rs24.75 on 59m shares, Sui Northern Gas, higher 40 paisa at Rs24.75 on 23m shares, PSO, up Rs1.05 at Rs206.05 on 16m shares and National Bank, firm by 80 paisa at Rs27.25 on 9m shares.

Other actives were led by KESC, firm 20 paisa at Rs4.95 on 9m shares, D.G. Khan Cement, unchanged on 6m shares, Dewan Motors, up Rs1.05 also on 6m shares, Engro Chemical, lower 70 paisa on 5m shares and Telecard, higher 65 paisa also on 5m shares.

FORWARD COUNTER: A massive activity of 39m shares featured the trading on the forward counter as financial institutions and leading brokerage houses tried to grab its floating stock. It ended with a smart rise of Rs1.70 at Rs35.85. PSO followed it, higher by Rs1.40 at Rs201.80 on 5m shares.

PTCL was up by 65 paisa at Rs24.70 on 6m shares, while Sui Northern gas rose 30 paisa at Rs24.75 on 2m shares. Engro Chemical fell 80 paisa at Rs78.70 also on 2m shares.

DEFAULTER COMPANIES: Active trading was witnessed on this counter as some of the leading shares attracted good support under the lead of Suzuki Motorcycles, up 30 paisa at Rs8 on 0.122m shares.

Schon Modaraba followed it, unchanged at Rs0.65 on 19,500 shares and S.S. Oil, unchanged at Rs4 on 8,000 shares.

DIVIDEND: Service Industries, cash 25 per cent; Premier Insurance 17.5 per cent; Ittefaq General Insurance, Silver Star Insurance, Platinum Insurance, Saudi Pak Commercial bank and Security Investment Bank, all nil.