August 19, 2003	Tuesday	Jumadi-us-Sani 20, 1424

KARACHI, Aug 18: Stocks on Monday staged a smart recovery on active short-covering by institutional traders and general investors at the lower levels aided partly by easing of badla rates from 15 per cent to 13 per cent and expectations of higher corporate announcements.

The KSE 100-share index recovered 125.07 points or 3.2 per cent as all the leading base shares posted sharp gains under the lead of PTCL, Hub-Power and PSO, pushing it finish at 4,267.53 points as compared to 4,142.46 points at the last weekend. The market capitalization soared by Rs24.675bn at Rs941.653.

It means that it has recovered 50 per cent of the losses suffered during the last two sessions and is well-poised to resumed its onward march to its next chart point of 4,500 or above it.

The opening was, however, highly volatile as it moved either-way, what the dealers called, the fallout of the previous week’s late sell-off but the mid-session witnessed the return of the bull market and the consequent crucial rally.

The buying euphoria was so strong that investors virtually ignored the reports of heavy Indian troops movement across the Line of Control in Kashmir apparently encouraged by the Indian denials.

The market witnessed a virtual scramble for the blue chips, which have received heavy battering at the fag-end of the last week and both the leading bulls and the institutional traders were not that fool to miss the opportunity.

“The index is destined to attain its new chart point of 4,500 and after that it is anybody’s guess,” leading analysts said. “The political situation, notably absence of consensus on the LFO could take its toll in the coming sessions if the showdown among the contenders of power takes an ugly turn.”

The easing of badla rates from the recent highs of about 15 per cent to 13 per cent and predictions of further decline and steady clearing of the carryover business signalled that all is well on the technical front and there is no harm to go for covering operations at the lower levels.

The board meeting of Shell Pakistan on Tuesday and the market talk of higher final dividend also generated a good of speculative buying in its shares and other energy scrips, notably PSO, which has received massive battering during the last couple of sessions.

Energy shares also received a major boost from an increase of one to three per cent in the petroleum prices in the fortnightly revision.

Board meetings of some other leading companies are also due in the next couple of days, which could keep the market in a good shape at least for the near-term.

Floor brokers said as speculated investors ignored the fallout of political events, including the developing law and order situation in the city and choose to follow the basic market fundamentals. Energy and auto shares, which showed sharp gains on active buying led the market advance. Leading gainers Al-Ghazi Tractors, Millat Tractors, Honda Atlas, Javed Omer, Pakistan Oilfields, IGI Insurance, Shell Pakistan and Siemens Pakistan, which posted gains ranging from Rs6.40 to Rs20.

Faisal Spinning, PSO, Shell Gas, Indus Motors, Abbott Lab, Fauji Fertiliser, Security Papers and Pakistan Reinsurance Company also showed good gains ranging from Rs4 to Rs5.

Losers were led by Wyeth Pakistan, off Rs35 followed by 13th ICP, Mari Gas, National Refinery, General Tyre and Mehmood Textiles, off Rs2 to Rs4.75. Others fell fractionally.

Trading volume rose to 536.258m shares from the previous 400.488m as gainers forced a strong lead over the losers at 216 to 128, with 53 shares holding on to the last levels.

PTCL was massively traded, rising by Rs2.40 at Rs37.15 on 123m shares followed by Hub-Power, higher by Rs1.25 at Rs44 on 103m shares, Fauji Cement, up Rs1.50 at Rs11.75 on 50m shares, Pakistan Oilfields, higher by Rs13.70 on 23m shares and FFC-Jordan Fertilizer, firm by 50 paisa at Rs18.80 on 21m shares.

Other actives were led by Sui Northern Gas, higher by Rs1.75 on 20m shares, PSO, up Rs4.90 on 18m shares, WorldCall firm by Rs1.50 on 16m shares, PIAC, steady by 80 paisa on 12m shares and Pioneer Cement, higher Rs1.35 also on 12m shares.

FORWARD COUNTER: Speculative issues on the forward counter also showed smart rallies under the lead of PSO, which recovered Rs5.85 at Rs285.45 on 8m shares followed by Fauji Fertilizer, higher by Rs4 at Rs99.50 on modest turnover.

PTCL rose by Rs2.20 at Rs37.20 on 16m shares, Hub-Power up Rs1.25 at Rs44.20 on 15m shares, FFC-Jordan Fertilizer, firm by 35 paisa at Rs18.95 on 5m shares, Sui Northern rose by Rs2.10 at Rs45.50 on 3m shares. MCB was the only exception, which fell by Rs1.20 at Rs51.

DEFAULTER COMPANIES: Active trading was witnessed on this counter as leading shares among them finished with good gains followed by active buying. Financial Link Modaraba was leading among them, up Rs1.20 at Rs4.20 on 0.277m shares.

Other actives were led by Suzuki Motorcycles, easy 25 paisa at Rs10.25 on 0.170m shares and Standard Bank, easy five paisa at Rs6.45 on 0.106m shares.