July 15, 2003	Tuesday	Jumadi-ul-Awwal 14, 1424

KARACHI, July 14: Stocks on Monday showed fresh widespread gains as investors were not inclined to miss an attractive bait of capital gains and continued to build up long positions on selected counters. KSE 100-share index rose by another 39.28 points or 1.08 per cent at 3,685.17.

Energy, textiles, chemical, fertiliser and blue chips on the other counters remained the centre of activity and proved most actives both in terms of handsome gains and large volumes.

The KSE 100-share index finished with an extended gain of 39.28 points at 3,685.17 amid another massively traded session of over 603m shares. Indications are that it could cross its next barrier of 3,700 points by Tuesday.

There was no immediate positive or negative impact on stock trading after the announcement of the deregulation policy of Pakistan’s telecom giant as investors were still in the process of analysing its details.

But its chief beneficiaries, Telecard and WorldCall Communications attracted a lot of anticipatory buying for obvious reasons and ended sharply higher.

The entire telecom sector, however, welcomed the proposed entry of the private sector companies for providing fixed-line telephone services along with the PTCL to the consumers.

“The PTCL deregulation policy may not make any significant negative impression on the thinking of the prospective buyers and any one of them now could take it with clear perception of profitability and allied benefits,” analysts said.

But the immediate impact of the policy on the share of PTCL was negative as it came in for strong selling by section of leading investors who picked up shares of Telecard and WorldCall after selling it at the recent inflated levels.

The thinking behind profit-selling was that the private sector companies are expected to take away a good part of annual revenues of PTCL after they get licences on 20-year basis, dealers said.

The broader market continued to emit bullish spark as investors were not inclined to take even a technical breather and continued to build-up long positions on sold tips.

“I don’t think bulls are inclined to loosen their grip on the current price line until the outcome of political parleys between the government and the opposition on the LFO is known,” says a broker. “And its future direction will be guided by the success or failure of the proposed talks.”

An idea of fresh buying flurry may well be had from the fact that most of the leading shares ended close to their circuit breakers under the lead of PSO, Sui Northern Gas, Engro Chemical, Adamjee Insurance, National Bank and MCB.

Leading gainers were led by Pakistan Paper Products, Noon Pakistan, Jahangir Siddiqui & Co, New Jubilee Insurance, Island Textiles, Ghani Glass, Mari Gas, AKD Securities and Glaxo-Wellcome Pakistan, which posted gains ranging from Rs4 to Rs5.30.

But the top gainers included Al-Ghazi Tractors, National Refinery, Lakson Tobacco, PSO and Fateh Textiles, up Rs7.25 to Rs10.

Losses on the other hand were fractional with the exception of Noon Sugar, Ahmed Hassan Textiles, Atlas Honda, Pakistan Refinery, Nestle MilkPak, Dewan Khalid Textiles and Siemens Pakistan, off Rs1.95 to Rs9.

Trading volume was maintained on the higher side at 603m shares as gainers held a strong lead over the losers at 273 to 141, with 53 shares remaining unchanged at the last levels.

Hub-Power topped the list of most actives, easy 10 paisa at Rs40.35 on 83m shares followed by FFC-Jordan Fertilizer higher by Rs1.50 at Rs15.90 on 78m shares, PTCL, lower 65 paisa at Rs31.05 on 48m shares, Lucky Cement, up Rs1.30 at Rs19.90 on 29m shares and Maple Leaf Cement, higher Rs1.40 at Rs18.75 on 27m shares.

Other actives were led by PSO, sharply higher 8.40 on 27m shares, Pak PTA, up 90 paisa also on 27m shares, Dewan Salman, lower 20 paisa on 25m shares, Sui Northern Gas, higher 55 paisa on 24m shares and TRG Pakistan, up Rs1.15 on 15m shares.

FORWARD COUNTER: PSO also came in strong buying on the forward counter and rose by Rs8.45 at Rs248.65 on 9m shares followed by FFC-Jordan Fertilizer, higher by Rs1.50 at Rs15.90 on 13m shares and Hub-Power, easy 10 paisa at Rs40.50 also on 12m shares.

PTCL suffered sharp decline of 65 paisa at Rs31.65 on 11m shares, while Dewan Salman, fell by five paisa at Rs20.40 on 3m shares.

DEFAULTER COMPANIES: Brisk trading was again witnessed on this counter as investors again indulged in alternate bouts of buying and selling taking fresh positions and realizing capital gains where possible.

Unity Modaraba came in for stray selling and ended lower by five paisa at Rs2.25 on 0.419m shares, while on the other hand Zahoor Cotton rose by 70 paisa at Rs2.90 on 0.207m shares and Biafo Industries, higher 20 paisa at Rs5.80 on 0.147m shares.

BOARD MEETINGS: Honda Atlas Cars on July 18; and Fauji Fertilizer on July 30.