August 2, 2003	Saturday	Jumadi-us-Sani 3, 1424

KARACHI, Aug 1: A new chapter was written in the trading history of the Karachi Stock Exchange on Friday after the KSE 100-share index boosted by higher dividends breached through two consecutive psychological barriers, a feat never achieved before in a single week.

After having crossed the barrier of 3,900 on Thursday, it maintained its upward drive and breached through the 4,000 point index level the following day and finished with a smart gain of 86.15 points at 4,019.52 in a second best single-session volume of 648m shares. The all-time figure so far was hit on Dec 31,2002 at 689m shares.

The total market capitalization soared by Rs.16.395bn at Rs894.244bn as compared to Rs877.849bn a day earlier, reflecting the strength of PTCL, Hub-Power and PSO.

A virtual galore of positive news from the corporate front including higher dividends and expectations of final bidding date for the PSO sell-off never allowed leading bulls as well as retailers to sit on the sidelines even at the weekend session, which generally attracts profit-selling and they made massive covering purchases across the board.

All roads, therefore, again led to the KSE as only fools could miss an attractive bait of quick capital gains in the presence of strong financial support and both retailers and short-term dealers followed the rising tide of an avalanche of buying offers irrespective of the asking prices for the scrips in trading, says a leading broker.

Both the PTCL and the PSO were massively traded, the latter on reports of its final sell-off bidding date led the market advance. PTCL accounted for 117m shares, while PSO rose by Rs20.65 above the Rs300 mark. It also took other leading energy shares including Shell Pakistan and National and Pakistan refineries along with it to new highs.

“If all the rumoured corporate news prove correct and government-MMA deal is signed, leading investors could push the index to 5,000 point level in due course, of course, after needed technical corrections,” he predicts.

After crossing the barrier of 3,900 points, it breached through the second consecutive psychological barrier of 4,000 during the week, a feat never achieved before in a single week and that too at the weekend session in the trading history of the KSE.

It finally ended well above this crucial level at 4,015.50, showing a massive rise of over 200 points or about 10 per cent during the week and reflected it go further higher rather than falling back despite overdue technical correction, brokers predict.

With encouraging interim dividend by the fertilizer giants, Fauji Fertilizer and Engro Chemical already in their pocket and an identical interim payout of 25 per cent by the Faysal Bank, investors build up fresh long positions in the PSO and Hub-Power anticipating a big fresh price flare-up in them.

“Hub-Power has already indicated a final cash dividend of 20 per cent in addition to 33 per cent interim already paid, there were rumours that the PSO could come out with a final dividend of 120 per cent on the strength of a massive earning growth,” analysts said.

What seems to have given credence to market talk of final bidding date for the PSO sell-off was reports that the Privatization Commission is meeting on Aug 7, and will possibly announce the final date, they said.

Big gains again dominated the list under the lead of Unilever Pakistan, Rafhan Maize, Pakistan Refinery, Pakistan Oilfields, Shell Pakistan,Javed Omer, Parke-Davis and Wyeth Pakistan, which soared by Rs11 to Rs36.

Losers were led by EFU Life, Nishat Chunnian, Abbott Lab, Crescent Steel, Gatron Industries, Artistic Denim and Shell Gas, off Rs2 to Rs6.60.

Trading volume soared to a second best figure of 648m shares as gainers maintained a fair lead over the losers at 205, to 180, with 69 shares holding on the last levels.

PTCL was massively traded, up one rupee at Rs34.55 on 117m shares followed by Hub-Power, higher by 45 paisa at Rs40.95 on 97m shares, PSO, sharply higher by Rs20.65 at Rs301.60 on 50m shares, Dewan Salman, up 65 paisa at Rs22.85 on 29m shares and PIAC, higher by 70 paisa at Rs18.55 on 27m shares.

Other actives were led by FFC-Jordan Fertilizer, steady 10 paisa on 27m shares, Maple Leaf Cement, higher by Rs1.55 on 27m shares, Pak PTA, up 30 paisa on 25m shares, Engro Chemical, higher Rs1.25 on 20m shares and Pakistan Oilfields, sharply higher by Rs17.85 on 19m shares.

FORWARD COUNTER: PSO also came in for strong speculative support amid hopes of fixation of its sell-off day and rose by Rs19.65 at 303.50 on 14m shares. Engro Chemical, Fauji Fertilizer and ICI Pakistan followed it, higher by Rs1.35, Rs1.85 and Rs3.95 at Rs93.70, Rs94.35 and Rs68.85 respectively.

Hub-Power was most active scrip, up 50 paisa at Rs41.40 on 14m shares followed by PTCL, higher by 90 paisa at Rs33.85 on 13m shares and FFC-Jordan Fertilizer, firm by five paisa at Rs17.15 on 5m shares.

DEFAULTER COMPANIES: Trading on this counter was relatively slow owing to weekend considerations. As a result, shares of 55 companies came in for trading under the lead of Asset Investment Bank, up 90 paisa at Rs6.95 on 0.586m shares followed by Unity Modaraba, steady by five paisa at Rs2.40 on 0.503m shares and Indus Polyester, higher by 40 paisa at Rs4.50 on 0.167m shares.