July 25, 2003	Friday	Jumadi-ul-Awwal 24, 1424

KARACHI, July 24: The KSE 100-share index on Thursday breached through the psychological barrier of 3,800 points on heavy institutional buying in most of the blue chips, signalling its onward march to the crucial level of 4,000 will continue aided by higher corporate earnings and perception of peace between the contenders of power.

On the defaulter counters Asset Investment Bank again came in for strong support on market talk of its merger with some other leading bank or its sell-off to some other party. It accounted for 1.668m shares, up Rs1.50 at Rs5.60 against its face value of Rs10.00. Others also rose amid active trading.

Starting from 3,000, it was the eighth successive breach of the crucial barriers during the last about two months and analysts predict it could take a breather after hitting its next target of 4,000 point. On average weekly increase was around 100 points or about four per cent.

It finally ended 3,815.14, up 27.33 points after at one stage briefly touching its career-best level of 3,825.57 in a briskly traded session in an expanded volume.

“The index level of 4,000 now appears to be well within reach irrespective of the negative news on the political front,” analysts said. “Massive surplus funds are floating here and there in search of gainful investment and the shares business now appears to be an envy of any prospective investor.”

Since January, the index has confidently breached a dozen barriers despite negative comments on its meteoric rise, often termed as speculative but now it is considered a reality backed by economic recovery and higher corporate earnings and dividend.

“Share values of the pivotals, supporting its upward thrust may not have risen in unison, they still ensure handsome capital gains for those who ventured to stay with them,” brokers said.

Energy, cement, sugar, banking, auto and fertilizer shares remained in strong demand and led to the market advance and so did undervalued ones on other counters, including modarabas that were ruling far below their face values. A 10-rupee share is available at Rs1.50 or even below this level, but most of them are recovering from the lows.

Several positive factors seemed to have encouraged investors, notably the institutional traders and banks to invest heavily in shares after the central bank cut interest rates on six-month T-bills by 32 basis points to 1.35 per cent from 1.67 per cent and hopes of a breakthrough on the LFO issue in Sunday’s government-opposition meeting.

But what appears to have sent a wave of optimism among the investors was reports that the final bidding date for the sell-off of PSO is expected to be announced by the next week, brokers said.

Plus signs again dominated the list under the lead of Adamjee Insurance, Island Textiles, Crescent Steel, International Industries, Atlas Honda, Abbott Lab, Aventis Pharma, Security Papers, Central Insurance and Unilever Pakistan, which posted gains ranging from Rs5 to Rs10. There were many other good gainers rising by Rs3.50 to Rs4.35.

Wyeth Pakistan led the losers, off Rs25 followed by Javed Omer, which continued to attract post-interim dividend selling, off Rs16.50. Other major losers included Arif Habib Securities, EFU Life, New Jubilee Insurance, Dewan Khalid Textiles and Artistic Denim, off Rs2.95 to Rs6.

Trading volume soared to 453m shares from the previous 396m shares as some of the low-priced energy shares came in for strong support under the lead of KESC and Japan Power. Gainers held a strong lead over the losers at 290 to 122, with 47 shares held on to their previous levels.

KESC topped the list of actives on privatization news, up 50 paisa at Rs8.40 on 54m shares followed by Lucky Cement, off 25 paisa at Rs21.50 on 33m shares, Japan Power, higher by 60 paisa at Rs5.95 on 20m shares, D.G. Khan Cement, easy 10 paisa at Rs37.80 on 25m shares and Hub-Power, lower five paisa at Rs39.35 on 23m shares.

Other actives included MCB, up 85 paisa on 23m shares, Maple Leaf Cement, firm by 15 paisa on 22m shares, PTCL, lower 10 paisa on 20m shares, National Bank, up Rs1.10 on 17m shares and Dewan Salman, steady by 20 paisa also on 17m shares.

FORWARD COUNTER: Hub-Power came in for modest support and rose by five paisa at Rs39.40 on 7m shares followed by PSO, up 75 paisa at Rs254.50 on 4m shares, PTCL, lower 25 paisa at Rs31.30 on 3m shares, FFC-Jordan Fertilizer, lower nine paisa at Rs16.41 also on 3m shares and Dewan Salman, up 18 paisa at Rs21.33 on 2m shares.

DEFAULTER COMPANIES: Active trading was witnessed on this counter where some of the shares turned out large turnover under the lead of Biafo, up 80 paisa at Rs6.30 on over a million shares, Pangrio Sugar, higher 90 paisa at Rs2.70 on 0.405m shares and Unicap Modaraba, firm by 10 paisa at Rs2.05 on 0.153m shares.