13 January 2004	Tuesday	20 Ziqa'ad 1424

KARACHI, Jan 12: The KSE 100-share index on Monday breached through the psychological barrier of 4,600 points for the second time in its trading history but failed to sustain it owing to late selling in some leading base shares. It finally finished with a clipped gain of 27.75 points at 4,597.90

However, indications are that it will maintain its upward thrust followed by steady inflow of both new year as well as portfolio investment by both the leading brokerage houses and the financial institutions.

The notable feature of the day was that trading in shares of Pakistan Capital Market Fund commenced on the forward counter at its face value of Rs10 and it finished higher at Rs12.60 after hitting the day's peak level of Rs15.50 on a massive volume of 67m shares, equalising the previous record set by the OGDC.

It will open for public subscription on Jan 22, for three days and will close on Jan 24. Trading, therefore, resumed on a higher note as investors continued to build up long positions on selected counters aided partly by Pakistan-friendly statements by the Indian prime minister after his Islamabad visit and partly by hopes of a durable peace between the two neighbours.

The rising peace prospects with India was also well-reflected in the performance of the KSE 100-share index, which breached through the barrier of 4,600 point for the second time to hit the day's peak level of 4,613 at one stage.

The previous all-time official peak level was 4,604 hit in mid-September last year but during the same session it had briefly touched the all-time high mark of 4,644.

Late selling, however, pushed it down to finish with a net gain of 27.75 at 4,597.90 as compared to 4,570.15 at the last weekend. All eyes are now focused on next month's Indo-Pakistan meeting to hold composite talks on the issues hindering peace between the two countries. Although final outcome of talks may not be immediately known, investors are expected to find some cue of decisions and will base their future buying strategy on them.

On the local front, economy is well on the road to recovery, exports are rising according to interim figures and that are corporate earnings for the first half of the current year.

"I don't think any immediate slow down in the market's current run-up as all fundamentals point to a bull future outlook," predicts a leading stock analyst.

Some others said the newly-launched foreign funds are expected to resume their market operations during the next couple of weeks and their presence could attract a lot of sympathetic buying from the locals.

About half a dozen new IPOs are scheduled for the current month after official approvals and analysts think it is positive development and good for the health of the stock market.

Meanwhile, the management of the newly-floated issue, OGDC has announced that it has delivered share certificates to the bankers and applicants can collect them from their respective banks. Plus signs dominated the list under the lead of Wyeth Pakistan, which rose by Rs50 followed by IGI Insurance, Treet Corporation, Nestle MilkPak, Javed Omer and Arif Habib Securities, up by Rs9.95 to Rs20. There were many other good gainers also.

Losers were led by Parke-Davis, off Rs35 followed by PICIC, Thal Jute, Al-Ghazi Tractors, Indus Motors, Pak-Suzuki Motors, Clariant Pakistan and Atlas Honda, which suffered fall ranging from Rs2 to Rs4.90.

Trading volume fell to 208m shares from the previous 232m shares as gainers held a strong lead over the losers at 241 to 102, with 49 shares holding on to the last levels.

The most active list was topped by Lucky Cement, up Rs1.45 at Rs26.45 on 37m shares, followed by Sui Northern Gas, higher by 70 paisa at Rs45 on 21m shares, Sui Southern gas, up 60 paisa at Rs31.30 on 19m shares, PTCL, firm by 15 paisa at Rs.37.40 on 17m shares and DG Khan Cement, higher by 80 paisa at Rs45.50 on 12m shares.

Other actives were led by Maple Leaf Cement,up 50 paisa on 10m shares, Fauji Cement, firm by 20 paisa on 6m shares, Pakistan Int.Containers, up Rs.1.50 also on 6m shares, Pakistan Oilfields, lower 15 paisa also on 6m shares and Fauji Fertilizer, up Rs2 on 5m shares.

FORWARD COUNTER: Pakistan Market Fund apart, the other actives were led by OGDC, higher by 40 paisa at Rs53.90 on 5m shares, PTCL, steady 15 paisa at Rs37.45 on 3m shares, Sui Northern Gas, up 55 paisa at Rs45.15 also on 3m shares, and WorldCall, easy 20 paisa at Rs15.10 on 2m shares.

DEFAULTER COS: Fidelity Bank again came in for strong buying apparently on some takeover bids and rose to close higher by Rs1.50 at 11.55 on 1.576m shares followed by Standard Bank, lower 15 paisa at Rs7.85 on 0.312m shares and Asset Investment Bank, higher one rupee at Rs4.50 on 0.113m shares.

DIVIDEND: Sapphire Textiles, cash 15 per cent, Dewan Khalid Textiles, Dewan Textiles, Dewan Mushtaq Textiles, bonus share at the rate of 10 per cent for all, Dewan Sugar, Ruby Textiles, Chakwal Spinning, Colony Textiles, Kohinoor Spinning, Azam Textiles and Colony Sarhad Textiles, all omitted the dividend for the year ended Sept 30, 2003.

BOARD MEETINGS: Chaudhry Textiles, Interfund Modaraba, on Jan 15, UDL Modaraba on Jan 16 and Century Papers on Jan 21.