May 6, 2003	Tuesday	Rabi-ul-Awwal 3, 1424

KARACHI, May 5: Stocks on Monday posted widespread gains as investors continued to build up long positions on selected counters aided by hopes that the current peace moves may normalize relations between Pakistan and India during the coming months. The KSE 100-share index surged 51 points or 1.75 per cent at 2,976.

Indications are that the buying euphoria could gather fresh momentum during the coming weeks provided fresh peace overtures continued to pour in from across the border leading to solution of outstanding issues between the two close neighbours, brokers hope.

But those who had in mind the previous record of failed bilateral talks between the two are a bit skeptical about the positive outcome of the current initiates and mostly played safe and for good reasons too, they added.

The market’s buoyant outlook was, however, well-reflected in the KSE 100-share index, which is heading towards achieving its new chart point of 3,000. It ended with a fresh gain of 51.15 points or 1.75 per cent at 2,975.72, signalling it could touch the new psychological barrier of 3,000 even tomorrow.

The market capitalization soared by Rs11 billion to Rs652 billion, close to its all-time peak level of Rs654 billion hit two months back.

The other stimulating factor, which lured investors back in the market, was reports of fresh bidding date for the shares of oil giant, Pakistan State Oil(PSO). The date had been deferred owing to Iraq war, and at the request of one of the four short-listed higher strategic bidders. Its share value rose Rs8.20 at Rs213.70 and could attain its pre-reaction level of Rs240 after the bidding date was announced, dealers said.

But the immediate morale-booster for the leading investors who were in search of fresh stimulants after the drying up of good corporate news on April 30, was the current peace overtures from the Indian prime minister including restoration of full diplomatic relations and opening of the air routes for direct flights.

“The current Indian peace offensive could well prove a double-edged weapon,” leading analyst fears. “It may not be a trap to rope in his Pakistani counterpart to stop alleged cross-border terrorism, the quick moves seem to be fraught with high risks.”

Many leading investors including some institutional traders are not inclined to ride the bandwagon without having some rethinking on the concealed “message behind these snap moves in quick succession.”

No one could deny the benefits of peace and normalization of political relations between the two close nuclear neighbours virtually at war for the last five decades, but what will finally count is the sincerity of the purpose and a genuine urge for a durable peace.

However, speculative forces are not in a mood to await further developments on the political front and decided to play their own cards apparently in a bid to realize quick gains.

Plus signs dominated the list as most of the leading shares and blue chips finished with smart gains under the lead of Parke-Davis and Wyeth Pakistan, up Rs45 and Rs59. Glaxo-SKF, Shell Pakistan and PSO, followed them, up Rs5 to Rs8.20.

Other good gainers were led by Dewan Khalid Textiles, Atlas Battery, Zulfiqar Industries, Gillette Pakistan, Atlas Honda, Unilever Pakistan, Singer Pakistan, Dewan Khalid Textiles, Dilon, Lawrencepur Woollen, Noon and Shahtaj Sugar, Lakson Tobacco, higher by Rs2 to Rs4.85.

Major losers included Siemens Pakistan, BOC Pakistan, Shezan International, Security Papers and Bhanero Textiles, off Rs1.90 to Rs5.

Trading volume soared to 245m shares from the previous 155m shares as gainers maintained a strong lead over the losing ones at 234 to 106, with 61 shares holding on to the last levels.

PTCL, topped the list of most actives, was higher by 65 paisa at Rs25.60 on 54m shares followed by Sui Northern Gas, up Rs1.25 at Rs29.25 on 41m shares, Hub-Power, firm 60 paisa at Rs35.50 on 35m shares, PSO, sharply higher by Rs8.20 at Rs213.70 on 21m shares, Pak PTA, steady by five paisa at Rs9.25 on 11m shares, PIAC, firm by 10 paisa t Rs11.45 on 6m shares and FFC-Jordan Fertilizer, up 20 paisa at Rs11.95 on 7m shares.

Other actives were led by D.G. Khan Cement, higher by 45 paisa on 9m shares KESC, up 35 paisa on 7m shares and Nishat Mills, higher by Rs1.60 on 5m shares.

FORWARD COUNTER: Firmer conditions were also witnessed on the cleared list where all the speculative shares finished on the higher side under the lead of the PSO, which posted a sharp gain of Rs8.50 at Rs214 on 9m shares.

Among the actives, PTCL was prominent, up 65 paisa at Rs25.65 on 10m shares, Sui Northern Gas, higher by Rs1.25 at Rs29.25 on 7m shares and Hub-Power, up 55 paisa at Rs.35.50 also on 7m shares. FFC-Jordan Fertilizer was traded higher by 20 paisa at Rs12 on 2m shares.

DEFAULTER COMPANIES: Shares of 28 companies came in for active trading and generally ended higher under the lead of Amazai Textiles, up 40 paisa at Rs1.10 on 36.500 shares followed by Schon Modaraba, firm five paisa at Rs0.75 on 34,000 shares and Suzuki Motorcycles, up 10 paisa at Rs14 on 21,000 shares. Some others were also actively traded.