07 February 2004	Saturday	15 Zilhaj 1424

KARACHI, Feb 6: Stocks on Friday maintained their upward drive followed by active institutional buying on selected counters triggered by the perception that the acceptance of nuclear proliferation charges by A.Q. Khan may not have negative fallout including sanctions on Pakistan. The KSE 100-share index gained another 47.13 points at 4,888.46.

"The crisis may still not be over but the bulls made it like that as leading among them were inclined to pick up the bullish thread from where they had left it a week earlier prior to Eid holidays," brokers said.

However, the immediate reaction to the possible end of the nuclear crisis was positive, but the market's future direction will be largely guided by the comments, global reaction and unfolding of further details of the issue, they added.

The KSE 100-share index posted a fresh gain of 47.13 points at 4,888.68, only 11 points below its next target of 4,900 and then its onward journey to the coveted level of 5,000. On last Friday it finished around 4,841.33 points.

The total market capitalization also rose by Rs9.521bn to 1,279.985bn from the previous Rs1,270.464bn, thanks to price appreciation.

The perception that acceptance of proliferation charges as an individual act by the founder of Pakistan nuclear programme will not leave any major negative impact on the sitting government buoyed investors who resumed their covering operations at the lower levels on selected counters.

Favourable statement issued by the US government on the issue indicates that Pakistan may not face the threat of sanctions after A.Q. Khan's acceptance of charges.

"For the time being the nuclear issue may have lost its relevance in the local perceptions but how others will interpret its implications could well be the major deciding point," most analysts believe. And if the global reaction over the proliferation issue is negative, which will be forthcoming during the next couple of weeks, the market will certainly react bearishly to those comments, they said.

However, its immediate impact on stock trading was fairly positive as market maintained its winning streak despite MMA's country-wide strike call against the treatment meted out to the leading nuclear scientists by the investigating agencies.

Sui Southern Gas came in for active support at the current level as it will be open for public subscription from Feb 9 to 11. About 10 per cent, including five per cent greenshoe option, will be disinvested at a fix price of Rs26 per share having a face value of Rs10. On Friday, it was quoted at Rs32.75.

Plus signs dominated the list, major gainers being pharma and food shares, notably Abbott Lab, Aventis, Parke-Davis, Unilever Pakistan and Nestle Milk-Pak, which posted gains ranging from Rs7 to Rs46.50, the largest rise being in Parke-Davis.

Other good gainers included New Jubilee Insurance, Javed Omer, Dawood Hercules, Sitar Chemicals and Packages, up by Rs4.60 to Rs11.05. There were several other prominent gainers also.

Losers were led by Siemens Pakistan, off Rs14 followed by Cherat Papers, Clariant Pakistan. Honda Atlas, Colgate Pakistan, Shell Pakistan, and Gatron Industries, off Rs2.20 to Rs4.50.

Trading activity was relatively slow as brokers remained busy in exchanging Eid greetings during a good part of the morning session but there were buyers at the dips.

Volume figure fell to 266m shares from the previous 365m shares but gainers maintained a fair lead over the losers at 179 to 148, with 46 shares holding on to the last levels.

The most active list was again topped by PTCL, up 75 paisa at Rs39.50 on 57m shares followed by Hub-Power, higher by 65 paisa at Rs39.55 on 35m shares, Nishat Mills, up Rs1.25 at Rs41.85 on 21m shares, D.G. Khan, lower 25 paisa at Rs49.50 on 16m shares, and Dewan Salman, up 50 paisa at Rs25.20 also on 15m shares.

Other actives were led by Sui Northern Gas, off 25 paisa on 13m shares, Pak PTA, up 90 paisa on 10m shares, ICP SEMF, off 80 paisa on 9m shares, National Bank, firm 25 paisa on 7m shares and PIAC, steady five paisa also on 7m shares.

FORWARD COUNTER: PTCL also topped the lost of actives on this counter, up 60 paisa at Rs39.50 on 5m shares followed by Hub-Power, higher 55 paisa at KSE index gains another 47.13 points Rs39.60 also on 5m shares, Pak PTA, up 90 paisa at Rs18.15 on 4m shares, Dewan Salman, steady 20 paisa at Rs25.10 on 3m shares and FF Bin Qasim, unchanged at Rs20.75 on 2m shares.

DEFAULTER COS: Food shares came in for active support under the lead of Quice Food, up 70 paisa at Rs2.95 on 0.661m shares followed by Indus Fruits, higher by Rs1.05 at Rs5.90 on 0.364m shares and Industrial Capital Modaraba, higher 20 paisa at Rs2.50 on 0.303m shares. Some others including Nazir Cotton and Crescent Spinning were also actively traded.

DIVIDEND: Pakistan Cables, interim cash, 20 per cent; Ferozsons Lab, interim cash 30 per cent; Service Fabrics, and Services Textiles, both nil for the year ended Sept 30, 2003.

BOARD MEETINGS: Bestway Cement on Feb 7; Nestle MilkPak Feb 8; Shifa International Feb 10; Fayzan Manufacturing, B.F. Modaraba, Berger Paints, Thal Jute, Saudi Pak Leasing on Feb 11; Gillette Pakistan, Merit Packaging on Feb 12; and Pakistan Engineering on Feb 21.