May 17, 2003	Saturday	Rabi-ul-Awwal 14, 1424

KARACHI, May 16: The KSE 100-share index on Friday breached through the psychological barrier of 3,000 points after several abortive attempts as a judicious combination of speculative and institutional buying, putting a statistical seal on its title of “best performing market”. It ended around 3,003, up 25 points, beating its previous all-time high records established during the last decade.

“It may not be the end of a rally initiated early this year, the unfolding economic scenario signals the best level is yet to come”, predict a leading stock analyst but others claim “there could be many slips between the cup and the lip even if all goes well and in line with the future market perceptions of the bulls”.

The market’s outstanding performance was attributed to perceptions of peace with India, fresh incentives for the share business in the new national budget and the economic takeoff.

Opinions are, however, divided over its viability beyond this crucial level as a section of the leading bulls targeted some of the “index heavy weights, notably the PTCL to outwit the bears”.

An increase of one rupee in the share value of PTCL adds about 17 points to the KSE 100-share index and that is perhaps why it may not be sustained for a longer time if other leading bases stay weak, analysts said.

The opening was, however, a bit bearish owing to early morning attacks on the petrol pumps of some foreign companies followed by selling by jobbers and retailers but the afternoon session witnessed all previous record surpassed just in one go followed by the return of the prodigal son.

Investors were a little deterred by the relatively weak performance of the energy shares after a successive further cut in petroleum prices for the third fortnight in a row.

After hitting the all-time peak level of 3,008 at one stage, it finally ended modestly reacted on weekend selling but indications are that it could resume its upturn to gain another 25 to 30 points before reacting, brokers said.

It was finally quoted at 3,003.35 points, up 24.68 points against the previous close of 2,978.67, reflecting the strength of leading base shares.

Both the KSE 100-share index has risen by about 450 points since January this year from 2,545.00 to 3,008 or 20 per cent, pushing the market capitalization to Rs660 billion from the Rs561 billion in January, an outstanding performance judged by any standard.

The surpassing of all the previous records, entitles the KSE to the title of “best performing markets in the world”, one broker said.

“I doubt index’s journey beyond the 3,000 point index level may not be sustainable”, says a leading stock analyst basing his assessment on the market’s overbought position and the consequent profit-selling could create oversupply of the floating stock”.

He says the current rise in the market capitalization as well as the index has caused a massive increase in the capital gains and dividend incomes adding “leading among them may take profits at the higher levels after unloading about 50 per cent or so of their portfolios giving a major shock to the prevailing boom conditions”.

Some others claim the journey above the 3,000 points index level appears to be manipulated as only PTCL was targeted, which holds a weightage of 33 per cent in the index, while other heavy weights including Hub-Power were neglected.

Plus signs dominated the list, major gainers being IGI Insurance, Javed Omer, Shafiq Textiles, Gatron Industries, Abbott Lab, Colgate Pakistan, Aventis Pharma, Reckitt & Benckiser and Nestle MilkPak, which posted gains ranging from Rs4.40 to Rs7.95.

Losers were led by Burewala Textiles, Millat Tractors, Packages, Wyeth Pakistan, Unilever Pakistan, Siemens Pakistan and Parke-Davis, off by Rs2 to Rs21.

Traded volume rose to 185m shares from the previous 121m shares as gainers maintained a fair lead over the losers at 282 to 107, with 43 shares holding on to the last levels.

PTCL, topped the list of actives, sharply higher by 35 paisa at Rs25.85 on 47m shares followed by Sui Northern Gas, easy 10 paisa at Rs31 on 21m shares, Hub-Power, up by 15 paisa at Rs34.80 on 19m shares, Dewan Motors, higher by 95 paisa at Rs18.60 on 13m shares, Dewan Salman, up by 80 paisa at Rs15.30 on 10m shares and PSO, up by Rs1.20 at Rs207.95 on 10m shares.

Other actives were led by D.G.Khan Cement, unchanged on 7m shares, National Bank, steady five paisa on 5m shares, Nishat Mills, up by 40 paisa on 4m shares and Kohinoor Textiles, firm by 10 paisa on 3m shares.

FORWARD COUNTER: Bulk of the support remained confined to PTCL, which ended higher by 45 paisa at Rs25.85 on 12m shares followed by Sui Northern Gas, unchanged at Rs31.10 on 7m shares, Hub-Power, also unchanged at Rs34.80 on 5m shares, PSO, higher by Rs1.20 at Rs208.45 on 4m shares and Dewan Salman higher by 80 paisa at Rs15.20 on 1m shares. Engro Chemical also attracted good support and rose by Rs1.20 at Rs79.40.

DEFAULTER COMPANIES: Brisk trading was again witnessed on this counter as leading among them came in for strong support and ended with sharp gains under the lead of S.S.Oils, up by Rs1.10 at Rs6.60 on 0.112m shares followed by Suzuki Motors, higher Rs1.40 at Rs14.50 on 92,000 shares and Amazai Textiles, firm by 10 paisa at Rs1.45 on 38,000 shares.

DIVIDEND: Honda Atlas Cars, cash at the rate of 35 per cent.