KARACHI, Dec 31: The Karachi Stock Exchange closed the last year's account with a certain degree of pride as it witnessed many previous records both in terms of index level and market capital bettered and some new ones established as investors were out to grab the floating stock and for good reasons too.

Although both the index and the market capital finished the year well below their all-time best levels so far but demonstrated in more than one ways that the new year debut could be more powerful on the strength of expected political harmony, higher corporate earnings and steady pace of privatization of state-owned units.

The KSE 100-share index rose by 17.39 points at 4,471.60 as compared to 4,454.21 a day earlier as all the leading base shares tended higher.

Engro Chemical came in for strong buying support followed by market talk of an interim and rose by 4.95 at Rs92.80. Some other pivotals including PSO, Pakistan Oilfields also attracted good support and rose.

The trading volume was relatively slow as brokerage houses remained busy in year-end portfolio adjustments rather than opting for new year buying.

During the year, the KSE 100-share index hit its all-time peak level at 4,604 and the market capital at Rs1,021 billion, the net increase in the both being about 70 per cent.

The market's spectacular performance over the year that just passed into history has earned for it the coveted title of "best performing bourse in the world."

As the future political scenario is developing, there could be a relative calm on the political front after the passing of the 17th constitutional amendment bill by two third majority by both the houses.

"Now the MMA, one of the major components of the opposition is, in a broader sense, the part of the ruling elite, the opposition's voice of dissent has been considerably weakened and in turn making the things more smooth for the government."

On the privatization front, the proposed sale of Habib Bank, one of the leading banks of the country to a highest bidder who offered Rs22.406 billion for its controlling shares is expected to hasten the process of other mega units including the PSO during the new year.

"Investors are eying the index level of 5,000 during the first quarter of the next year and indications are that it could now be achieved as much has changed both on the political and corporate front," analysts said.

The state of the economy as shown by the central bank in its quarterly report for the current year is in line with initial projections, and indications are that the GDP growth target at 5.4 per cent is sure to be achieved.

Plus signs were strewn all over the list, prominent gainers among them being BOC Pakistan, IGI, Gatron Industries and Wyeth Pakistan, up Rs7.75 to Rs40 followed by Nestle MilkPak and Siemens Pakistan, up Rs8.40 to Rs28.55. on reports of higher interim earnings.

Shahtaj Sugar, Lakson Tobacco, EFU Life, Engro Chemical, Mehmood Textiles, Tri-Pack Films, were among the other prominent gainers, up by Rs4 to Rs4.50.

Losers were led by Mitchell's Fruits, Colgate Pakistan, Sapphire Fibre, Dawood Hercules, Ghani Glass, Pakistan Services and many others, off Rs3 to Rs4.95 but the largest decline of Rs39 was recorded in Parke-Davis.

Trading volume fell to 171m shares from the previous 195m shares but the advancing shares maintained a fair lead over the losers at 201 to 134, with 46 shares holding on to the last levels.

Engro Chemical topped the list of most actives, up Rs4.95 at Rs92.80 on 28m shares, Sui Northern Gas, up five paisa at Rs41.20 on 12m shares, PSO, higher by Rs2.55 at Rs288.55 on 11m shares, Pakistan Oilfields, up one rupee at Rs235.80 also on 11m shares, DG Khan Cement, firm by 25 paisa at Rs45.70 on 9m shares.

Other actives were led by PTCL, easy 25 paisa on 9m shares, Lucky Cement, steady five paisa also on 9m shares, Dewan Salman, up 10 paisa on 8m shares, Pak PTA, higher by 25 paisa on 7m shares and Hub-Power, off 40 paisa also on 7m shares.

FORWARD COUNTER: Sharp increase in the price of Engro Chemical ahead of board meeting featured the trading on this counter. It ended with a sharp rise of Rs4.30 at Rs93.20 on 4m shares followed by the PSO, off Rs1.70 at Rs290.80 on 3m shares, FF Bin Qasim, up 15 paisa at Rs17.80 on 2m shares, and Hub-Power, easy 20 paisa at Rs38.75 also on 2m shares. But the largest turnover was again recorded in OGDC, unchanged at Rs51.90 on 41m shares.