July 4, 2003	Friday	Jumadi-ul-Awwal 3,1424

KARACHI, July 3: The KSE 100-share index is steadily rising to breach through the psychological barrier of 3,500 points and analysts predict the target is now not that far. It ended further higher by 21.53 points at 3,481.43 points.

The significant feature of the day was that a record number of shares, including low-priced modarabas and banks, came in for strong buying and some of them turned out large volumes and generally tended higher under the lead of Biafo and Unity Modaraba.

“The bait of capital gains at the attractively lower prices appears to be the chief inspiring force behind the current surge in them,” brokers said. “The important factor is that they added needed depth to stock trading at least for the near-term.”

After having successfully broken four barriers during the last month, the index is eying the 4,000 point level and if all goes well with the current corporate background news and there is no political turmoil in the backdrop of the prevailing tussle between the government and the opposition over the LFO and some other issues that goal may now not be elusive, they said.

The market’s buoyant mood was also well-reflected in the KSE 100-share index, which at one stage touched the day’s peak level of 3,491, just nine points short of its next crucial level of 3,500 points. But late selling pushed it to close lower at 3,481.43, up 21.53 points.

The mid-session selling pushed it down at 3,451, but later short-covering in the leading base shares, notably PTCL and Hub-Power put it again on the upside.

Volume figure soared to 465m shares, signalling that the market is now looking beyond the 3,500 index level before the massive expected inflow from the National Savings Scheme owing to 1.5 per cent cut in profit rates makes its debut.

“Investors are taking positions on selected counters ahead of an expected massive inflow of investment buying from the official schemes as the chances of capital appreciation are now more bright in the share business than the savings scheme,” analysts said.

A cash dividend at the rate of Rs1.75 per unit on National Investment Trust (NIT) units was said to be another aiding factor behind the market’s upward trend.

The lead was provided by the leading banks most of which appear to be in a process of new portfolio building to take in the outflow of funds from the hereto unproductive channels.

In the process, some of the leading shares witnessed a mid-session sell-off in leading shares, notably Engro Chemical, FFC-Jordan Fertiliser, Shell Pakistan, KESC, Bosicor Pakistan and some others. A section of leading investors moved in after the mid-session and made active covering purchases in most of the pivotals at the lower levels allowing the broader market to maintain its upward drive.

Opinions about the market trend on the weekend session are divided. Some predict higher badla volume and rates could trigger sell stop by way of clearing, while others say correction may be around after the index hits the 3,500 level possibly tomorrow or the next week depending on the mood of banks and other financial traders.

The list was again strewn by the plus signs, prominent gainers among them being Spencer & Co, IGI Insurance, Glaxo-SKF, Unilever Pakistan and Javed Omer, which posted fresh gains ranging from Rs7.05 to Rs20.85.

They were followed by 4th ICP, Dewan Khalid Textiles, Abbott Lab, Jahangir Siddiqui Bank, Associated Industries, AKD Securities, Clariant Pakistan, Dawood Hercules and many others, up Rs3 to Rs5.50.

Losers were led by EFU General, Jahangir Siddiqui Co, Noon Sugar, BOC Pakistan, Cherat Papers, Merit Packaging, Packages, Nestle MilkPak, Gillette Pakistan, Pakistan Services, HinoPak Motors and Shell Pakistan, off Rs2 to Rs5.50.

Traded volume, including on the defaulter counter, soared to 465m shares from the previous 302m shares as the advancing shares maintained a strong lead over the losing ones at 223 to 168, with 45 shares holding on to the last levels.

PTCL topped the list of most actives, higher by 30 paisa at Rs29.10 on 62m shares followed by reports that it has reduced bandwidth rates by 10.25 per cent followed by National Bank, up Rs1.75 at Rs30.80 on 48m shares, D.G. Khan Cement, higher one rupee at Rs30.85 on 44m shares, Hub-Power, steady five paisa at Rs38.25 on 32m shares and Dewan Salman, higher 80 paisa at Rs18.80 on 30m shares.

MCB, higher by Rs2.10 on 24m shares, PSO, up Rs1.60 on 19m shares, PIA, firm by 20 paisa on 17m shares, Maple Leaf Cement, off 50 paisa on 14m shares, Faysal Bank, up 75 paisa on 14m shares.

FORWARD COUNTER: Barring FFC-Jordan Fertiliser, which suffered a mild reaction of five paisa at Rs13.95 on 2.345m shares, all others rose modestly under the lead of PSO, up 80 paisa at Rs234.80 on 7m shares followed by PTCL, higher 30 paisa at Rs29.25 also 7m shares.

Hub-Power was marked up by 10 paisa at Rs38.55 on 5m shares, while Dewan Salman, rose by 70 paisa at Rs18.90 on 3m shares.

DEFAULTER COMPANIES: Fairly brisk trading was witnessed on this counter where shares of over dozen companies came in for active bouts of buying and selling under the lead of Unity Modaraba, off 15 paisa at Rs2.10 on 0.589m shares, followed by Biafo Industries, higher 55 paisa at Rs5.70 on 0.566m shares and S.S. Oils, up also by 55 paisa at Rs8.55 on 0.184m shares.