November 25, 2003	Tuesday	Ramazan 29, 1424

KARACHI, Nov 24: Prime minister’s ceasefire offer along the Line of Control in Kashmir and some other peace initiatives boosted stock trading on Monday as investors flooded the market and lifted the KSE 100-share index well above the crucial barrier of 4,000 points at 4,067.42

An air of optimism prevailed in the trading hall over Prime Minister Zafarullah Khan Jamali’s latest peace overtures amid hopes of a positive response from his Indian counterpart, leading to normalization of relations between the two close neighbours.

Positive economic indicators during the maiden year of the political government was another aiding factor reinforcing the intensity of the broad rally beyond the coveted level of 4,000 index level.

As widely predicted at the last weekend, the KSE 100-share index again confidently breached through the crucial barrier of 4,000 at 4,067.42, up 92.36 points or 2.32 per cent, a massive pre-Eid holidays recovery. The market capitalization also showed a big rise of Rs18.349bn at Rs867.480bn as compared to Rs849.131bn at the last weekend session.

“Making the 4,000-point level, a crucial launching pad, the index is now poised to touch again its all-time career-best level of 4,0604, before its onward journey to the new target of 5,000, which now appears to be a strong possibility if all goes well with the latest political initiatives,” analysts believe. The market should have given a more positive reaction to the recent developments both on the external and local fronts, but a long weekend ahead owing to Eid holidays from Nov 26, restricted fresh long portfolio building by the institutional traders and bargain-hunters.

The fresh confidence-building steps announced by the prime minister in his Sunday evening speech have reinforced the investor perceptions that the peace between the two close neighbours may now not be an elusive goal.

An Indian reply to Pakistan’s peace overtures may be positive, which in turn, could further boost stock trading in both the countries, brokers predict.

Another positive feature was an economic take-off on a number of sectors during the first year of the political government, notably in exports and industrial productivity.

And on top of them are the fresh initiatives from the ruling elite to rope in the warring MMA and feelers of some understanding between the two on the LFO issue, they said.

“The market should retain its past glory in the post-Eid sessions if the ruling elite comes to cooperation terms of the MMA,” most analysts believe. “This now appears to be the only irritant inhibiting fresh commitments.”

All the leading index shares as well blue chips on the other counters came in for strong support under the lead of energy, fertilizer, auto and most of the second-liners and finished with smart gains. Prominent gainers were led by Shell Pakistan, PSO, IGI, Island Textiles after the announcement of 25 per cent cash dividend, Pakistan Oilfields, and Javed Omer, which finished with gains ranging from Rs8 to Rs14.10. Other good gainers included Bannu Woollen, International Industries, Pak-Suzuki Motors, Al-Ghazi Tractors, Ferozsons Lab, Glaxo-SKF and Clover Pakistan, up by Rs4 to Rs5.90.

Losers were led by Dawood Cotton, JWD Sugar, Gatron Industries, Siemens Pakistan, Shell Gas and Dreamworld, off Rs2 to Rs7.40.

OGDCL finished close to its upper circuit-breaker limit over Rs43.60 on strong renewed buying triggered by reports that its maiden IPO was oversubscribed by eight-time or Rs27.5bn ($480.5m) against offer of about Rs6 billion. Trading volume also rose to 198m shares from the previous 134m shares as advancing shares forced a strong lead over the losing ones at 210 to 61, with 31 shares holding on to the last levels.

The most active list was topped by Fauji Fertilizer Bin Qasim (former FFC-Jordan), up 60 paisa on 24m shares followed by PTCL, higher by 95 paisa at Rs34.35 on 23m shares, Hub-Power, up also by 95 paisa at Rs36.65 on 23m shares, PSO, higher by Rs9.10 at Rs279.40 on 16m shares and D.G. Khan Cement, up 90 paisa at Rs40.85 on 14m shares.

Other actives were led by Pakistan Oilfields, higher by Rs13.95 on 9m shares, Maple Leaf Cement, up Rs1.20 on 8m shares, Fauji Cement, higher by 55 paisa on 7m shares, Lucky Cement, up 80 paisa on 6m shares and PIAC, higher by 40 paisa also on 6m shares.

FORWARD COUNTER: OGDCL remained in strong demand and rose sharply higher by Rs3 at the day’s highest bid of Rs43.60 on 42m shares followed by PSO, up Rs8.20 at Rs280 on 6m shares.

PTCL rose by Rs80 paisa at Rs34.45 on 5m shares, Fauji Fertilizer Bin Qasim, up 70 paisa at Rs19.70 on 4m shares and Hub-Power, higher by 75 paisa at Rs36.70 on 4m shares. Fauji Fertilizer and Engro Chemical were also marked up by Rs1.01 and Rs1.20, respectively, at Rs87 and Rs82.95.

DEFAULTER COS: Suzuki Motorcycles came in for active support and rose by Rs1.25 at Rs14.25 on 0.155m shares, while all others were fractionally traded.

DIVIDEND: Island Textiles, cash 25 per cent; Tata Textiles, 15 per cent, for year ended Sept 30, 2003; and KESC, nil.