August 8, 2003	Friday	Jumadi-us-Sani 9, 1424

KARACHI, Aug 7: Trading volume on the Karachi Stock Exchange on Thursday soared to an all-time peak level of 959m shares as the index breached through the two psychological barriers, up 112.22 points or 2.75 per cent at 4,204.43 followed by massive foreign and local buying in PTCL and Hub-Power aided by perception of return of sanity on the political front.

Reports of a possible agreement between the MMA and the government over the LFO and final date of bidding for the sell-off of controlling shares of PSO were among the many stimulating factors on which the current price flare-up is being based, analysts said adding “all previous records were bettered and new ones were established amid boom conditions.”

“The market welcomed the advent of the foreign support with an open arms,” they said. “It appears to be a judicious blend of both strong local financial and foreign fund buying and may have made its debut on long-term basis on the perception of a political peace.”

The breach of the two barriers, 4,100 and 4,200 for the second week in a row reflects the investor mood and optimism about the future outlook for the share business and the next target of 4,500 points for the KSE 100-share index.

Trading volume also established a new all-time peak level at 943m shares surpassing its previous all time single-session record of 689m shares set up in late December 2002 as both the PTCL and Hub-Power were massively traded, their individual count being 207m and 184m shares, out of the total.

“The massive activity appears to be an outcome of both local and foreign buying triggered by the perception of a political peace after the MMA-government agreement,” some analysts presume. “But some others were reluctant to confirm or deny it.” One thing, however, appears certain that investors may not have gone mad at least for the time being.

The KSE 100-share index broke two consecutive barriers of 4,100 and 4,200 and firmly settled at 4,204.43 after hitting the day’s best level of 4,224, indicating that it is now not that far from its target of 4,500 points. Its day’s tally was 112.22 points or 2.75 per cent.

The KSE 100-share index has risen by 55 per cent since January this year in addition to 125 per cent during the last two years as certain corrective steps taken by the authorities have restored the investor confidence in the share business.

“There is a credible evidence of foreign support in the current rally, as a loud whispering in the KSE corridors suggests massive buying in Hub-Power and PTCL indicates it has already made its debut,” one analyst said.

Local institutional traders or the general investors are not that mad just to follow the shadows, they certainly may have found a cue for the presence of foreign buying, some others claim.

They said feelers about a possible deal between the government and the MMA on the LFO followed by Wednesday’s late night meeting between the contenders of power has lent credence to the conflicting rumours.

The meeting of the Privatization Commission to fix the final bidding date for the sell-off of controlling shares of PSO due Thursday and postponed by a day proved another morale booster for the investors who covered positions in it, pushing its price to a new peak level at Rs319.

“Gulf support in PSO is there but whether or not the other foreigners are involved in current rally is unclear,” brokers said adding. “The inflow of the liquidity is pretty hard to calculate at this stage.”

Top gainers were led by Pakistan Oilfields, Pakistan Refinery, Grays of Cambridge, HinoPak Motors, Unilever Pakistan, Bhanero Textiles, IGI Insurance and Javed Omer, which posted gains ranging from Rs7 to Rs25. There were several others, which rose by Rs4 to Rs6.95.

Losers were led by Cherat Papers, Ahmed Hassan Textiles, Ghani Glass, EFU Life, Gatron Industries and Wyeth Pakistan, off Rs2 to Rs6.50, while others fell fractionally.

Trading volume swelled to 958.519m shares as gainers maintained a strong lead over the losers at 281 to 137, with 35 shares holding on to the last levels.

PTCL was massively traded, up Rs2.50 at Rs36.10 on 207m shares followed by Hub-Power higher by 90 paisa at Rs42.85 on 184m shares, FFC-Jordan Fertiliser, firm by Rs1.05 at Rs18.20 on 68m shares, D.G. Khan Cement, higher Rs2.35 at Rs41.70 on 58m shares and PSO, up Rs8.85 at Rs319 on 49m shares.

Other actives were led by Sui Northern Gas, up Rs2.85 on 39m shares, PIAC, higher 95 paisa on 38m shares, Lucky Cement, firm by 70 paisa on 24m shares, Maple Leaf Cement, up Rs2 also on 24m shares and Pakistan Oilfields, higher by Rs7.20 on 22m shares.

FORWARD COUNTER: Speculative issues on the forward counter also followed the lead of the ready counter under the lead of PTCL, up Rs2.50 at Rs36.20 on 28m shares followed by Hub-Power, higher one rupee at Rs43.05 on 23m shares, PSO, sharply higher by Rs5.80 on 13m shares, FFC-Jordan Fertilizer, steady by 80 paisa on 11m shares and Sui Northern Gas, higher by Rs2.90 on 4m shares.

DEFAULTER COUNTER: Active trading was also witnessed on this counter where leading shares ended higher under the lead of Biafo Industries, up Rs1.50 at Rs7.60 on 0.756m shares followed by Islamic Bank, up 70 paisa at Rs6.15 on 0.376m shares and Financial Link Modaraba, easy 35 paisa at Rs4.50 on 0.248m shares.