14 February 2004	Saturday	22 Zilhaj 1424

KARACHI, Feb 13: Stocks on Friday staged a broad recovery as investors were not inclined to be guided by the fallout of the nuclear issue and resumed short-covering on the blue chip counters at the lower levels.

The KSE 100-share index recovered 69.63 points at 4,874.22.

An attractive bait of higher dividend and capital gains overshadowed president Bush's warning on the nuclear proliferation issue and black market the very next day, reflecting the inherent strength of the broader market.

"I don't think bulls could be roped in before the index attains its recently established target of 5,000," says an analyst. "The next week could be crucial for its onward thrust beyond this level." The market recovery was led by the energy sector under the lead of PSO and Pakistan Refinery, while auto shares suffered fresh pruning on renewed selling.

The market's buoyant outlook was also evident by the return of the bulls who pushed the index up by 69.63 points or 1.45 per cent at 4,874.22 as compared to 4,804.59 a day earlier.

The market seems to have absorbed the negative fallout of president Bush's Wednesday's warning on the nuclear proliferation issue and his vow to eliminate its operators as leading financial institutions provided the much-needed lead to the massively battered bears.

Auto shares, which encountered heavy selling a day earlier followed by government decision to allow import of old and reconditioned cars and proposed cut in duty caused fresh price erosions on this counter despite the fact that the imported stuff may be not that cheaper to have significant negative impact on their local sales, chances of price cut notwithstanding," brokers said.

"The nuclear crisis could drag on for weeks but president's vow not to compromise on the issue has lent support to market perceptions that stocks may not be affected by the adverse developments on the political front," they said. But some others said the snap rally appeared to be a bit "inspired" to demonstrate that the share market is not likely to be affected adversely owing to the nuclear fallout, some others said.

All the blue chips and leading stocks came in for active covering purchases at the lower levels aided partly by upcoming board meetings of some of the leading companies including Lakson Tobacco and some others.

Dividend announcements by Prime Commercial Bank were in line with the market perceptions and was well-received among the investors as was reflected by a modest rise of Rs1.50 in its share value at Rs18.65.

Leading gainers were led by Unilever Pakistan, Siemens Pakistan and Parke-Davis, up by Rs20 to Rs49 followed by Fauji Fertilizer, PSO, Pakistan Oilfields, Pakistan Refinery and Javed Omer, which rose by Rs5.50 to Rs18.60.

Losers were led by Wyeth Pakistan, off Rs85 followed by Indus Motors, Pak-Suzuki Motors, Blessed Textiles, Shezan International, Pakistan Services, Dreamworld, and Gatron Industries, which suffered fall ranging from Rs2.20 to Rs5.

Trading volume further fell to 275m shares from the previous 286m shares but gainers forced a strong lead over the losers at 239 to 130, with 42 shares holding on to the last levels.

PTCL topped the list of most actives, up 65 paisa at Rs39.35 on 35m shares followed by OGDC, higher by 50 paisa at Rs52.45 on 24m shares, FF Bin Qasim, firm by 30 paisa at Rs20.60 on 21m shares, Sui Southern Gas, up Rs1.30 at Rs34.20 on 19m shares and Sui Northern Gas, higher by Rs2.75 at Rs56.65 on 15m shares.

Other actives were led by Dewan Salman, easy 15 paisa on 15m shares, DG Khan Cement, up 45 paisa on 14m shares, PIAC, higher by 25 paisa on 11m shares, Maple Leaf Cement, up 50 paisa on 9m shares and PSO, sharply higher by Rs5.50 also on 9m shares.

FORWARD COUNTER: PTCL also led the list of speculative shares, up 65 paisa at Rs39.40 on 6m shares followed by PSO, higher by Rs4.25 at Rs289.50 on 4m shares, FF Bin Qasim, steady 45 paisa at Rs20.65 on 3m shares, Dewan Salman, unchanged at Rs25.65 also on 3m shares and Sui Northern Gas, up Rs2.55 on 2.509m shares.

Engro Chemical and Fauji Fertilizer also came in for active support and rose by Rs1.45 and Rs3.85 at Rs95.45 and Rs108 respectively.

DEFAULTER COS: Standard Bank led the list of actives, up 65 paisa at Rs9.05 on 2.632m shares followed by Indus Polyester, higher also by the same amount at Rs3.70 on 0.570m shares and Fidelity Bank, up 75 paisa at Rs10.25 on 0.265m shares. Some others were also actively traded.

DIVIDEND: Prime Commercial Bank, cash 12 per cent, bonus shares 10 per cent for the year ended Dec 31, 2003.