May 9, 2003	Friday	Rabi-ul-Awwal 6, 1424

KARACHI, May 8: Stocks on Thursday finished higher followed by active short-covering by both leading investors and financial institutions on the blue chips counters but prices moved in an extremely narrow band.

Unlike the previous sessions, selective support figured prominently on some counters which, in turn, evoked sympathetic buying on some second-liners, allowing the market to behave in line with the investors’ perceptions.

A section of leading investors, however, stayed on the sidelines awaiting Indian parliament’s response to Pakistani peace moves, to act accordingly.

A general perception among investors was that India may not go that far as did Pakistan just in one go and may come forward with conditional peace proposals.

“Any negative Indian response to Pakistan’s peace overtures may not cause major dents in the existing price structure (but) it will certainly halt the index’s upward march to the 3,000 point level”, one broker predicts.

After moving either-way, the KSE 100-share index finally managed to finish higher with a modest rise of 10.28 points at 2,962.87 but bulls are still eying its next target of 3,000 points possibly by the next week.

The delay of a couple of weeks in the privatization of Pakistan State Oil (PSO) also proved a negative factor as investors were hoping the new bidding date may be a week away, brokers said.

Officials attributed the delay to some outstanding financial issues relating to PSO liabilities.

On the corporate front, fresh stimulating news came from Dawood Cotton that has announced interim bonus shares at the rate of 50 percent. The news was well-received in the market and it reflected in a sharp rise of Rs3.90 in its share value. Most other leading companies have already announced their final and interim dividends which, in turn, may slow down the prevailing brisk activity.

Leading gainers were led by Rafhan Maize and Treet Corporation, up Rs10.00 to 19.40 followed by Maqbool Textiles, Janhangir Siddiqui Bank, Janana Demaluc-ho Textiles, Burewala Textiles, Indus and Latif Jute,Al-Abid Silk, Millat Tractors, Reckitt and Bencksier, Climax, Unilever Pakistan and Noon Pakistan—all up by Rs.1.50 to 4.00.

Prominent losers included PSO and Wyeth Pakistan off Rs.4.25 and 19.00 followed by Sana Industries, Shafiq Textiles, Lakson Tobacco, Pakistan Refinery, Attock Refinery, Singer Pakistan, Nestle MilkPak and some others, off Rs.1.55 to 2.50.

Trading volume rose to 260m shares from the previous 210m shares as gainers maintained a fair lead over the losers at 201 to 141, with 66 shares holding on to the last levels.

PTCL led the list of actives, up 25 paisa at Rs.25.30 on 53m shares followed by Hub-Power, higher also by the same amount at Rs35.10 on 46m shares; Sui Northern Gas firm by 60 paisa at Rs29.40 on 45m shares; KESC, higher by 40 paisa at Rs.5.65 on 19m shares followed by reports that its controlling shares will be unloaded during the next three months—and PSO off Rs.4.25 at Rs.208.50 on 10m shares. The selling in PSO scrip was prompted by reports of further delay in its sell-off date. MCB was up 30 paisa at Rs34.30 on 6m shares.

Dewan Motors led the other actives on active support ahead of its board meeting up 65 paisa on 8m shares; Southern Electric steady five paisa also on 7m shares; Sui Southern gas higher by 30 paisa on 6.852m shares and D.G. Khan Cement lower 25 paisa on 4m shares.

FORWARD COUNTER: Hub-Power came in for active support at the lower levels and rose by 20 paisa at Rs.35.15 on 12m shares followed by PTCL firm 15 paisa at Rs. 25.30 on 10m shares and Sui Northern Gas higher 60 paisa at Rs.29.35 on 9m shares.

PSO on the other hand came in for active selling followed by reports of delay in its bidding date off Rs445 at Rs208.80 on 6m shares and Pak PTA easy five paisa at Rs9.05 on 1.161m shares.

DEFAULTER COMPANIES: The number of companies soared to 30 as investors continued to build up long positions in some of them at the lower levels followed by reports of their revival.

Medi Glass rose by 95 pasia at Rs2.50 on 0.348m shares followed by Quice Foods higher five paisa at Rs1.65 on 0.139m shares and Mehran Jute up 30 pasia at Re1 on 39,000 shares.

Others were also actively traded mostly at higher rates under the lead of Amazai Textiles up 30 paisa at Rs1.35 on 35,500 shares.

BOARD MEETINGS: Metropolitan Steel on May 9, Al-Abbas Sugar on May 10, Faran Sugar Mills on May 13, Honda Atlas Cars on May 14 and Quality Textiles on May 15.