November 5, 2003	Wednesday	Ramazan 9, 1424

KARACHI, Nov 4: Stocks on Tuesday staged a broad recovery boosted apparently by positive economic indicators as projected by the central bank but analysts said it were the lower carryover rates, which generated a lot of covering purchases, both in the pivotals and the second-liners.

The KSE 100-share index recovered 73.99 points or about two per cent at 3,867.55 points, breaching through the recent lowest barrier of 3,793.56 points as all the leading base shares finished partially recovered. Market capital also rose by Rs14.921bn at Rs819.909bn.

After having kept to the sidelines for the last couple of weeks, bulls appeared to be terribly got tired and led by the institutional traders decided not to miss the bear market and the State Bank data provided them the needed boost, they said.

“It was a positive market response to some of the major breakthroughs on the economic front despite some serious setbacks,” says an analyst, commenting on the annual report of the central bank released on Monday highlighting the performance of the economy as a whole under the political regime. “The claim of economic takeoff, however, could be disputed in the absence of creation of new job opportunities.”

“But I don’t think that the central bank report could pull the market out of the current impasse of falling demand and it may again fall victim to a low buying interest as it has already absorbed the positive impact of these economic indicators in its meteoric rise last month,” he adds.

Some others attributed the market recovery to the revival of institutional demand at the lower levels backed, of course, by lower carryover charges and short-sellers were not fool to miss the opportunity and actively participated in the proceedings.

Reports that the Privatization Commission has received five expressions of interest for the sell-off of 73 per cent shares of Karachi Electric Supply Corporation (KESC), both from local and foreign bidders.

However, the bulls awaiting some positive developments on the economic front were back in the market and lent support to some of the leading shares apparently in a bid to pull some of their partners out of the strongholds of the bears who were setting the trend for the last couple of weeks.

Seven per cent growth in industrial productivity, increase in current account surplus, higher cash crop production, an improvement in foreign debt profile, lower interest rates and significant increase in remittance, higher export, 5.01 per cent growth in GDP and record rise in foreign exchange reserves are some of the milestones achieved during the last year, according to the State Bank report.

“More important was the astounding performance of the KSE, which set new records, both in terms index level and market capitalization at Rs4,604 billion and Rs1,021 billion, respectively,and judiciously maintained its title of the best performing market in the world,” analysts said.

After several lean sessions, advancing shares managed to force a strong lead over the losers, prominent gainers being BOC Pakistan, Indus Motors, Pak-Suzuki Motors, Pakistan Oilfields, National Refinery, Javed Omer and Unilever Pakistan, up Rs5 to Rs27, followed by Gatron Industries, Honda Atlas, Pakistan Refinery, Reckit and Benckiser and some others, which posted gains ranging from Rs3.50 to Rs4.85.

Losers were led by Island Textiles, HinoPak Motors, Glaxo-SKF, Mehmood Textiles, New Jubilee Insurance, Millat Tractors and Parke-Davis, which suffered fall ranging from Rs3 to Rs10.

Trading volume rose to 162m shares from the previous 74m shares as gainers forced a comfortable lead over the losers at 147 to 107, with 38 shares holding on to the last levels.

The active list was topped by FFC-Jordan Fertilizer, higher by Rs1.10 at Rs17.90 on 37m shares followed by D.G. Khan Cement, higher by Rs2.70 at Rs39.35 on 22m shares, Hub-Power, firm 50 paisa at Rs34.85 on 10m shares, PSO, up 40 paisa at Rs257.90 also on 10m shares and Maple Leaf Cement, up Rs1.65 at Rs24.05 on 8m shares.

Other actives were led by PTCL, up 20 paisa on 8m shares, Pakistan Oilfields higher, by Rs6 on 6m shares, Fauji Cement, higher by 65 paisa also on 6m shares, Dewan Salman, higher 55 paisa on 5m shares and KESC, up 70 paisa on 4m shares.

FORWARD COUNTER: FFC-Jordan Fertilizer led the list of actives on this counter, Rs1.15 at Rs18 on 6m shares followed by PSO, firm 35 paisa at Rs258 also on 6m shares, Hub-Power, up 30 paisa at Rs34.90 on 2m shares, PTCL, higher 40 paisa at Rs34 on 1.409m shares and Sui Northern Gas, up one rupee at Rs40.25 on 0.757m shares.

Engro Chemical, Nishat Mills and MCB also attracted good support and finished higher by Rs1.25, 1.60 and Rs1.95 at Rs82.50, 23.20 and Rs42.95, respectively.

DEFAULTER COS: Prices of most of the scrips, which came in for trading also rose fractionally but traded volume in them was modest barring Standard Bank and Biafo, which accounted for large block of turnover.

BOARD MEETINGS: Faysal Bank on Nov 5; Honda Atlas Cars Pakistan Nov 11; BOC Pakistan on Nov 13; and Siemens Pakistan on Nov 14.