April 5, 2003	Saturday	Safar 2, 1424

KARACHI, April 4: Stocks on Friday shrugged off the overnight hesitancy as investors were back in the market and covered positions at the lower levels aided partly by reports that the deadline for the sell-off of PSO will be adhered to.

The KSE 100-share index posted a good gain of 25.16 points at 2,778.63 as compared to 2,753.47 a day earlier as all the leading base shares tended further higher amid an actively traded session.

The market capitalization again crossed the Rs600bn mark and if all goes well with the broader market it may possibly better the previous all-time high of Rs610bn.

Since the start of the Iraq war, the market has been rife with rumours that the sell-off date of PSO may be shifted to some other month amid fears that among the short-listed bidders two belong to Gulf and they may think twice before offering a competitive price. Its share has suffered sharp fall followed by the rumours of postponement of the bidding date.

But the official denial of any delay cleared the deck as investors resumed normal trading in its share and many other pivotals, giving a sense of direction to an unsettled market.

Pakistan’s reply to Indian threat of pre-emptive strike also aided the underlying sentiment as investors resumed normal trading and covered positions on selected counters.

“The perception that the occupation of the Baghdad airport as claimed by the allied forces, which was denied by Iraq, could change the course of Iraq war during the next couple of sessions also stimulated fresh buying from some leading investors”, analysts said.

But bulk of the support again originated from the financial institutions who failed to find any other alternate mode of gainful investment rather than the share business, they said.

However, the weekend rally always proves a prelude of its extension during the next week if there is no alarming negative development during the intervening closures.

All the pivotals came in for active short-covering under the lead of PSO, PTCL, Hub-Power and several other low-price issues, having potential to rise in normal trading conditions.

Engro Chemical also came in for renewed support after the amicable settlement of the issue of hostile takeover by its immediate competitor Dawood Hercules whose director has reportedly cornered about 27 per cent of its floating stock, analysts said.

Leading gainers were led by Unilever Pakistan and Wyeth Pakistan, up by Rs17 and Rs23, while prominent losers included Gillette Pakistan and Mehmood Textiles, off Rs2.40 and Rs2.20, while all others fell fractionally on slack demand rather than large selling.

Trading volume rose further to 196m shares from the previous 170m shares as gainers maintained a strong lead over the losers at 193 to 69, with 62 holding on to the last levels.

Hub-Power led the list of actives on strong support ahead of its board meeting, up by 35 paisa at Rs35.55 on 43m shares, followed by Sui Northern Gas, higher by 55 paisa at Rs25.15 on 30m shares, PTCL, easy five paisa at Rs24.45 on 29m shares, PSO, higher by Rs1.25 at Rs208.50 on 18m shares and National Bank, up by 20 paisa at Rs27.45 on 6m shares.

Other actives were led by FFC-Jordan Fertilizer, firm by 15 paisa on 6m shares, Pak PTA, steady by 10 paisa also on 6m shares, ICI Pakistan, up by 75 paisa on 5m shares, Engro Chemical, higher Rs1.80 on 4.435m shares and Adamjee Insurance, up by Rs2 on 4m shares.

FORWARD COUNTER: Hub-Power also topped the list of actives on the forward counter, up by 30 paisa at Rs35.55 on 13m shares, PSO, higher by Rs1.10 at Rs203.60 on 5m shares, PTCL, up by five paisa at Rs24.55 on 3m shares.

Sui Northern Gas, rose by 60 paisa at Rs25.20 on 2m shares, while Engro Chemical posted a gain of Rs1.10 at Rs80.50 on 1.741m shares.

DEFAULTER COMPANIES: Active trading was witnessed on this counter as leading shares rose modestly amid modest short-covering. Suzuki Motorcycle again came in for active support at previous level of Rs8 on 34,000 shares followed by Pangrio Sugar, up by 10 paisa at Rs1.05 on 5,500 shares and Gammon Pakistan, off 50 paisa at Rs15 on 4,500 shares. Others were modestly traded.

BOARD MEETINGS: Universal Insurance, Crescent Star Insurance, on April 7, Gillette Pakistan, on April 10, Tri-Pack Films, on April 17 and Packages on April 21.