October 7, 2003	Tuesday	Sha’aban 10, 1424

KARACHI, Oct 6: Stocks on Monday maintained their upward drive followed by active short-covering by all and sundry under the lead of institutional traders aided partly by reports of partial liquidation of shares of some mega issues under the current month’s privatization programme.

The KSE 100-share index breached through the barrier of 4,200 after adding 21.82 points to the previous close at 4,214.21 and Rs3.644bn to the market capital at Rs924.225bn amid moderately active trading.

Much of the buying interest remained confined to those shares, which still promise handsome capital gains, notably cement, mutual funds, energy and some selected shares on other counters.

Although rumours about the final bidding date of PSO are speculative, some claim, it will be out during the next couple of days, possibly after the National Bank and OGDCL and based on investor response to the both.

“Poor institutional response to Saturday’s Pakistan Investment Bond sale may not necessarily reflect investor preference for the share business where, the return on investment is fair and quick, it certainly demonstrate some reservations on their part”, says a leading analyst.

The government put on sale PIB worth Rs25 billion of different denominations but only managed to sell worth Rs9 billion, what the dealers called poor response owing perhaps to lower rate of interest as compared to share business.

The outflow of liquid funds from the capital market to PIBs and other official instruments is billed as negligible as far as trading in stocks is concerned, although the market may have some other inhibitors, they said.

While the 13.131m shares of National Bank are due to be sold off through the bourses on Oct 15, 215m shares of Oil and Gas Development Corporation Ltd (OGDCL) are also on the card possibly by the end of the current month.

The National Bank’s 10-rupee share is being offered at Rs36, while that of the OGDCL at Rs32 per share, both are priced at an attractive levels, analysts said.

But what seems to have enthused investors most was some positive leaks about the final bidding date for the disinvestment of controlling shares of PSO during the next couple of days.

“Despite a massive sell-off late last month, most of the leading shares may not have lost institutional interest, but their buying strategy reflects a major shift”, analysts said adding “now it appears to be turn of undervalued ones to be on the top”.

Investors buying interest now has significantly shifted to the undervalued shares, most of which ensure handsome capital gains during the weeks to come. Fauji Cement, Lucky Cement, Pakistan PTA, FFC-Jordan Fertilizer were leading among them.

Plus signs again dominated the list leading gainers being Shell Pakistan, Ferozsons Lab, PSO, Clover Pakistan and Unilever Pakistan, up by Rs5 to Rs19 followed by Kohat Cement, BOC Pakistan, Century Papers, Zulfiqar Industries and Ghani Glass, which posted gains ranging from Rs4.20 to Rs4.75.

Losers were led by Glaxo-SKF, Treet Corporation and Grays of Cambridge, off by Rs7.75 to Rs15.65 followed by EFU Life, Pak-Suzuki Motors, Security Papers, EFU General, Jahangir Siddiqui & Co, off by Rs3.50 to Rs3.70.

Trading volume showed a fresh modest rise at 365m shares from the previous 335m shares as gainers maintained a strong lead over the losers at 192 to 110, with 29 shares holding on to the last levels.

D.G.Khan again topped the list of most actives, sharply higher by Rs2.30 at Rs42.90 on 45m shares, Fauji Cement, up by 65 paisa at Rs11.60 on 43m, PSO, higher by Rs7.60 at Rs289.60 on 40m shares, Lucky Cement, firm by 65 paisa at Rs24.65 on 26m shares and PTCL, easy five paisa at Rs38.30 on 23m shares.

Other actives were led by Dewan Salman, up by 85 paisa on 22m shares, Japan Power, firm by 10 paisa on 16m shares, Hub-Power, off 35 paisa on 14m shares, National Bank, steady by 15 paisa on 11m shares and Maple Leaf Cement, higher by Rs1.50 on 10m shares.

FORWARD COUNTER: PSO came in for strong support on rumours of early final bidding date and rose by Rs7.65 at Rs291.65 on 12m shares followed by Hub-Power, 70 paisa at Rs36.65 on 9m shares, PTCL, unchanged at Rs38.35 on 3m shares and Dewan Salman, up by 60 paisa at Rs19.25 on 2m shares.

DEFAULTER COMPANIES: The activity on this counter remained insipid in the absence of demand from any quarter. Prices showed either-way changes amid narrow movements. Suzuki Motorcycles was the only exception, which attracted active selling and fell by 40 paisa at Rs12.50 on 0.109m shares.

DIVIDEND: Shell Gas LPG, cash 85 per cent, Escort Investment Bank, right shares at the rate of 50 per cent, Tri-Star Mutual Fund, 10 per cent, First Tri-Star Modaraba, one per cent, second Tri-Star Modaraba also one per cent, Ghani Glass, 10 per cent, First Leasing Corporation and Kashmir Polytex, both nil for the year ended June 30, 2003.

BOARD MEETINGS: Hajveri Modaraba, on Oct 9, Javed

Omer Vohra, Elite Capital Modaraba, on Oct 10, Reckitt and Benckiser on Oct 17, Tri-Pack Films, on Oct 21.