April 8, 2003	Tuesday	Safar 5, 1424

KARACHI, April 7: Stocks on Monday posted fresh widespread gains followed by active short-covering aided by the perception that the sell-off of controlling shares of the PSO to some strategic bidder on April 26 is now almost certain. The KSE 100-share index crossed 2,800 mark, up 44.49 points at 2,823.12.

The market capitalization hit its second career-best all-time high at Rs610.577bn close it its peak level of Rs610.578, attained on January 7, 2003, and indications are that it may set new records during the coming weeks.

What seems to have given credence to investor perceptions was leaks from the Privatization Commission meeting called to settle the issue of receivable from Wapda, the last query of the bidders needing official clearance.

The KSE 100-share index breached through the barrier of 2,800 points and and ended with a fresh rise of 49.49 points at 2,823.12 as compared to 2,778.63 at the weekend as PSO-led rally spread to almost all the counters.

Apart from a US debt waiver of $1 billion, the market sentiment was also influenced favourably by reports of bullish response of the European and Asian markets to positive news from Iraq and the perceptions that the war may end soon.

The market is literally playing to the tune of reports from the Iraq war, but it is too risky to jump to hasty conclusions as the war between the unequals is still going on.

“Encouraging news virtually engulfed the market, giving the much-need push to the bulls to consolidate their positions above the psychological barrier of 2,800 points amid an actively traded session,” analysts said.

The US debt waiver, rising exports despite Iraq war, the sell-off of PSO controlling shares to one of the short-listed bidders on the scheduled date of April 26, and massive surplus bank money is out to intensify the bull-run.

The run-up was also aided by the market talk of a good dividend by the National Bank of Pakistan ahead of its board meeting to review the annual accounts.

“There could still be many a slips between the lip and cup, cautions a leading analyst. “Investors should think twice before going out for a kill on a particular counter.”

The current worldwide markets rallies are essentially based on the perception that the Iraq war is heading toward its logical end during the next couple of days according to the US sources.

“But investors should also take into account the other side of the coin before riding the bandwagon as any adverse development could pull the market down just in one go,” some broker said.

Prominent gainers were led by Glaxo-Wellcome Pakistan, Dawood Hercules, Unilever Pakistan, Nestle MilkPak and Pakistan Insurance Co, higher by Rs7.45 to Rs17.20. Other good gainers included New Jubilee Insurance, Burewala Textiles, Gatron Industries, Mari Gas, PSO, Shell Pakistan, Crescent Steel, Pak-Suzuki Motors, BOC Pakistan, National Foods and Gillette Pakistan, up Rs2 to Rs5.05.

Losses on the other hand were mostly fractional barring IGI Insurance, Mitchell’s Fruits, Bhanero Textiles, Siemens Pakistan and Fazal Textiles, off Rs1.40 to Rs4.

Trading volume rose to 220m shares from the previous 196m shares as gainers maintained a strong lead over the losers at 201 to 87, with 44 holding on to the last levels.

Hub-Power topped the list of most actives, up 45 paisa at Rs36 on 52m shares, PTCL, higher by 40 paisa at Rs24.85 on 27m shares, Sui Northern Gas, up 40 paisa at Rs25.55 on 25m shares, FCC-Jordan Fertiliser, higher 25 paisa at Rs11.65 on 23m shares, PSO, higher by Rs4.50 at Rs213 on 18m shares and National Bank, off 45 paisa on ahead of its board meeting on 10m shares.

Other actives were led by Dewan Salman Motors, firm by 75 paisa on 8m shares Bosicor Pakistan, higher 70 paisa on 7m shares, Pak PTA, steady by 20 paisa also on 7m shares and PIAC, lower 65 paisa on 5m shares.

FORWARD COUNTER: PSO also came in for active support on the forward counter and rose by Rs5.50 at Rs209.10 on 5m shares followed by Engro Chemical and Fauji Fertiliser, up Rs1.20 and Rs1.45 at Rs81.10 and Rs83.20, respectively, amid modest activity.

Hub-Power topped the list, higher by 55 paisa at Rs36.10 on 11m shares, PTCL, up 35 paisa at Rs24.90 on 3m shares, Sui Northern, higher 50 paisa at Rs25.70 on 2m shares and FFC-Jordan Fertiliser, firm by 30 paisa at Rs11.70 on 1.364m shares.

DEFAULTER COMPANIES: Suzuki Motors attracted strong support and rose by Rs1.50 at Rs9.50 on 86,800 shares followed by Metropolitan Steel, firm five paisa at Rs12.50 on 11,000 shares and S.S. Oil, unchanged at Rs4 on 8,500 shares. Schon Modaraba fell by five paisa at Rs0.60 on 7,000 shares.