April 9, 2003	Wednesday	Safar 6, 1424

KARACHI, April 8: Stocks on Tuesday rose further on a wide front followed by fresh heavy buying in most of the pivotals aided by encouraging corporate announcements, notably from National Bank and PIAC.

The KSE 100-share index posted a fresh gain of 29.73 points at 2,852.85 as all the leading base shares showed further gains, pushing the total market capitalization to a record high of Rs617.61bn, bettering its previous all-time peak level of about Rs611bn established early this year.

PSO again remained in the limelight owing to some positive developments on its privatization front amid hopes that the deadline of April 26, may be judiciously maintained.

But what seems to have intensified the prevailing bull-run was above market expectations dividend at 12.5 per cent cash plus 10 per cent bonus by the management of the National Bank of Pakistan. Its share posted a gain of 95 paisa at Rs27.95 on 16m shares after the announcement was made in the trading hall.

The cash dividend by the National Bank was said to be well beyond the analysts predictions as it seeks to convey the message to investors the major change that has taken place in the banking sector.

“In the backdrop of falling interest rate incomes and private sector credit demand, we never expect such an outstanding performance from the Pakistan’s premier bank”, commenting on the financial performance of the National Bank, most brokers say.

An identical performance by the other major banks including Habib Bank, United Bank and Muslim Commercial Bank could further accelerate the current market run-up.

Having massive surplus liquidity in their coffers in the absence of an adequate corporate sector credit demand, banks and financial institutions have been one of the major players on the country’s stock market for the last about four months and had provided the needed depth to the market.

“The National Bank performance may not necessarily reflect in part the massive capital gains cornered by many others after participating in the share business as it has varied income channels, but analysts speculate and did not rule out the possibility of such windfalls”.

Analysts said the news from the corporate sector are expected to give the needed support to stock trading as the upcoming corporate announcements may also be above the market expectations.

PIAC, which has been a losing concern for the last couple of years has already turned the corner after earning post-tax profit of Rs1.87 billion for the last year though it passed over the dividend.

PSO also continued to attract fresh support ahead of its sell-off date on April 26 and rose to Rs221, net rise over the last couple of sessions being Rs25.

Floor brokers said investors are now mostly responding to local positive developments and are not inclined to follow the conflicting reports from the Iraq war and their impact on the local trading.

Plus signs again dominated the list under the lead of Unilever Pakistan, PSO, Dawood Hercules, Pakistan Reinsurance Co and Wyeth Pakistan, which posted gains ranging from Rs6 to Rs19.

Other notable gainers included Noon Sugar, Shahtaj Sugar, Pakistan Refinery, Shell Pakistan, Gillette Pakistan, Colgate Pakistan, Gatron Industries, Clariant Pakistan and National Refinery, up by Rs3 to Rs5.45. There were many others, which rose by Rs1.50 to Rs2.70.

Losses on the other hand were mostly fractional barring Javed Omer, Mari Gas, Quetta Textiles, Bhanero Textiles and Nestle MilkPak, off one rupee to Rs11.50.

Trading volume rose to 275m shares from the previous 221m shares as advancing shares maintained a strong lead over the losing ones at 198 to 72, with 61 holding on to the last levels.

Hub-Power led the list of actives, firm five paisa at Rs36.05 after early rising to Rs36.40, on 62m shares followed by PSO, higher by Rs8 at Rs221 on 46m shares, PTCL, firm 15 paisa at Rs25 on 45m shares, Sui Northern Gas, easy five paisa at Rs25.50 on 20m shares and National Bank, higher by 95 paisa at Rs27.95 on 16m shares.

Other actives were led by D.G.Khan Cement, up by 60 paisa on 6m shares, Dewan Motors, higher by 50 paisa also on 6m shares, Dewan Salman, steady 15 paisa on 5.471m shares, ICI Pakistan, higher by Rs1.60 on 5m shares and FFC-Jordan Fertilizer, unchanged also on 5m shares.

FORWARD COUNTER: PSO remained in strong speculative support ahead of its sell-off and rose further by Rs7.10 at Rs219.80 on 12m shares followed by ICI Pakistan, which was marked up by Rs2 at Rs52.30 on a modest volume.

Hub-Power was again actively traded, easy five paisa at Rs36.05 on 16m shares followed by PTCL, firm by 20 paisa at Rs25.10 on 4m shares, Sui Northern Gas, unchanged at Rs25.60 on 2m shares and Engro Chemical, up by 40 paisa at Rs82.10 on 0.886m shares.

DEFAULTER COMPANIES: Shares of 11 companies came in for trading under the lead of Suzuki Motorcycles, which posted a sharp rise of Rs1.50 at Rs11 on 0.210m shares followed by Quality Steel, unchanged at Rs7 on 3,000 shares and Ghandhara Industries, easy five paisa at Rs6 also on 3,000 shares.

DIVIDEND: National Bank, cash 12.5 per cent, bonus share 10 per cent, Askari General Insurance, cash 15 per cent and Crescent Star Insurance, nil for the year ended Dec 31, 2002.