December 2, 2003	Tuesday	Shawwal 7, 1424

KARACHI, Dec 1: The KSE 100-share index on Monday recorded one of the largest single session gains of 194.78 points or about five per cent followed by heavy buying on all the counters triggered by the current peace initiatives, leading to normal neighbourly relations with India.

“All roads may not be leading to Khalian road (Pakistan’s Wall Street) but the panic buying spree at the lower level and a virtual price flare-up on all the counters reflect that the massively battered bulls are back in the market,” most analysts believe.

A sharp increase of Rs38.503bn in the market capital at Rs906.389bn indicates that buying euphoria is genuine and not deceptive backed by some of the positive indicators, both on the corporate and political fronts.

In addition to peace moves, including unilateral ceasefire and facility of overflights, the other contributory factors were said to be reports of merger of FF Bin Qasim with Fauji Fertilizer, rumours of 60 per cent interim dividend after the merger, 2.6 per cent increase in POL prices and OGDCL’s subscription figure of about Rs28bn.

The breach through the two psychological barriers of 4,100 and 4,200 just in one go reflects the mood of the bulls who now seem to be out to avenge their defeat and set new records for both the index and daily volumes.

It was the largest single session gain at 4,263.07, although it has still to go a long way to recoup the loss of about 700 points it had suffered during the last about two months. Its career-best level was hit at 4,604.00 in September.

The previous single-session rise of 182.47 points was noted on September 18, 2003, and the loss of 206.50 points on September 16, 2003, but the volume figure was far below the all-time single session record of 961m shares attained in August.

If all goes well with the current peace initiatives, notably after the resumption of overflights and some other steps, it could improve upon its previous all-time high record, analysts said.

As a matter of fact bulls were already back in the market taking cue from the local political developments, including an expected settlement of LFO issue followed by positive signals from the government, they said the fresh Pakistan’s peace moves and the positive response from the Indian high-ups allowed the bulls to come to the aid of the falling market.

“It is an Eid gift to the stock market,” says a leading stock analyst. “Bulls were not that fools to miss it.”

Energy shares led to the market advance on the perception of higher profits after the successive increase in petroleum prices for the second fortnight in a row under the lead of Pakistan Oilfields and PSO, which rose by Rs15.20 and Rs14.75, respectively, followed by Pakistan Refinery and National Refinery.

Other prominent gainers were led by Island Textiles, Al-Ghazi Tractors, Packages, Javed Omer and Unilever Pakistan, which posted gains ranging from Rs6 to Rs88, the largest rise being in Unilever Pakistan.

Losses on the other hand were mostly fractional barring JWD Sugar, HinoPak Motors, Grays of Cambridge, Aventis Pharma, Gatron Industries and Dawood Hercules, which suffered fall ranging from Rs2 to Rs3.95.

Trading volume soared to 437m shares from the previous 168m shares as the advancing shares forced a strong lead over the losing ones at 257 to 50, with 29 shares holding on to the last levels.

FF Bin Qasim topped the list of most actives, up Rs1.20 at Rs21.40 on 67.256m shares, followed by PTCL, higher by Rs2.10 at Rs36.55 on 56m shares, Hub-Power, up Rs1.75 at Rs38.45 on 44m shares, PSO, sharply higher by Rs15.20 at Rs288.50 on 34m shares and D.G. Khan Cement, up Rs2.15 at Rs42.45 on 31m shares.

Other actively traded shares were led by National Bank, higher by Rs3.25 on 21m shares, Fauji Cement, firm by 65 paisa on 17m shares, PIAC, up Rs1.50 on 16m shares, Pakistan Oilfields, higher by Rs14.75 also on 16m shares, and Maple Leaf Cement, up Rs1.35 on 13m shares.

FORWARD COUNTER: OGDCL remained in strong demand and rose by Rs3.30 at Rs47.70 on 48m shares followed by PSO, higher by Rs14.15 at Rs290 on 11m shares, PTCL, up Rs2.25 at Rs36.70 on 9m shares, and Hub-Power, higher by Rs1.65 at Rs38.50 on 5m shares.

Sui Northern Gas, MCB, Engro Chemical, Fauji Fertilizer and ICI Pakistan also came in for strong demand and posted gains ranging from Rs2.45 to Rs4.

DEFAULTER COMPANIES: Trading on this counter remained relatively slow as investors remained busy in the ready section. Prices, however, showed fractional gains amid light volumes.

DIVIDEND: Ishaq Textiles, cash 10 per cent for the year ended Sept 30, 2003.

BOARD MEETINGS: Ideal Spinning, Shafiq Textiles, on Dec 2; Quality Textiles, Dawood Cotton, Metropolitan Steel, Ghandhara Nissan, Gul Ahmed Textiles, on Dec 3; Zahidjee Textiles, Ghandhara Industries, N.P. Spinning, on Dec 4; Husein Sugar, Nishat Chunian, Shaheen Cotton, Shahzad Textiles, Kohinoor Textiles, and Muhammad Farooq Textiles, on Dec 5; Pioneer Cement and Elahi Cotton, on Dec 6.