May 28, 2003	Wednesday	Rabi-ul-Awwal 25,1424

KARACHI, May 27: Stocks on Tuesday finished with an extended gain as strong institutional buying drove bears out of the market after their mid-session abortive bid to reverse the trend failed amid a brisk trading.

All the leading shares as well as the low-priced current favourites again came in for active support as investors are not inclined to miss the rising market at a time when the bait of capital gains has assumed more importance.

After giving an erratic performance followed by mid-session selling, the KSE 100-share index managed to finish with an extended gain of 20.23 points at 3,126.64 as compared to 3,106.41 a day earlier.

“The index level of 3,200 points may not be in a striking distance as anything could happen in between”, says an analyst “but if its last three sessions’ performance is taken as a base when it has risen by 126 points that target may not be that elusive”.

The index has, during the last about three weeks, successfully breached through the barriers of 3,000 and 3,100 points and analysts are now predicting a technical breather after the crossing of the next target of 3,200 points, possibly before the national budget on June 7.

Cement shares, most of which are still ensure good capital gains again stole the limelight on reports of higher exports to Afghanistan, followed by auto, some leading textile and sugar shares whose board meetings are due and many blue chips were leading among the gainers. Pakistan Oilfields followed them on reports of higher earnings.

“Expectations of an early bidding date for the sell-off of PSO and fresh peace moves from India appear to have generated a good bit of speculative buying and short-covering on selected counters, notably the cement and some textile shares”, analysts said.

Reports that the Pakistan Privatization Board will meet on June 2, possibly to fix the bidding date for the PSO disinvestment is claimed to be the chief force behind the current buying in its share.

News from the local political front are not that encouraging as the rigid positions taken by both the government and the opposition on the LFO issue could take the current steam out of the market just in one-go if there is no consensus on the contentious issues.

“I don’t say the market is sitting on the volcano, the unfolding local political scenario is not that ideal too until sanity prevails in the camps of contenders of power”, says a leading broker.

Plus signs again dominated the list under the lead of Colgate Pakistan, Rafhan Maize Products and Siemens Pakistan, which were quoted higher by Rs9 to Rs24.50 followed by EFU Life, National Refinery, Pak Paper Products, Goodluck Industries, Pakistan Refinery, Millat Tractors, Dreamworld Pakistan, Fazal Textiles, Attock Refinery, Lakson Tobacco and Al-Ghazi Tractors, which posted gains ranging from Rs3.65 to Rs7.

Losers were led by Bannu Woollen, Shell Gas, Bata Pakistan, Clover Pakistan, Noon Sugar and Treet Corporation, off Rs2 to Rs7.60.

Trading volume fell modestly to 276m shares from the previous 277m shares but gainers maintained a strong lead over the losing ones at 224 to 187, with 49 shares holding on to the last levels.

The most active list was again topped by D.G.Khan Cement, higher by Rs1.25 at Rs20.70 on 58m shares followed by PTCL, firm by 10 paisa at Rs26.25 on 29m shares, PSO, higher by Rs1.65 at Rs216.15 on 19m shares, Hub-Power, steady five paisa at Rs32.10 on 15m shares, Pakistan Oilfields, up by Rs2.90 on 13m shares and Lucky Cement, higher by 90 paisa at Rs15.35 on 11m shares.

Other actives were led by Nishat Mills, up by Rs2.30 on 14m shares, KESC, lower 15 paisa on 9m shares and Maple Leaf Cement, up by 20 paisa at Rs9.95 on 8m shares.

FORWARD COUNTER: PSO again came in for active short-covering amid hopes of early announcement of the final bidding date and rose to finish higher by Rs1.60 at Rs216.30 on 5m shares followed by Hub-Power, easy nine paisa at Rs35.21 on 3m shares, PTCL, higher by 12 paisa at Rs26.35 also on 3m shares, Sui Northern Gas, higher by 11 paisa at Rs32.16 on 2m shares and Nishat Mills higher by Rs1.55 at Rs25.40 on 1m shares. The odd price changes reflected falling buying interest in speculative issues owing perhaps to the proximity of the budget.

June settlements also followed the lead of their counterparts in the May contracts amid slow trading.

DEFAULTER COMPANIES: Active trading was again witnessed on this counter where shares of about three dozen companies came in for alternate bouts of buying and selling under the lead of Pangrio Sugar, easy 15 paisa at Rs1.35 on 0.167m shares followed by Medi Glass, up by 20 paisa at Rs2.50 on 0.114m shares.

Other actives were led by Norrie Textiles, higher by 20 paisa at Rs1.55 on 61,500 shares.