10 April 2004	Saturday	19 Safar 1425

KARACHI, April 9: Stocks finished the weekend session on a firm note as bears failed to intensify the mid-session selling pressure owing to the presence of strong institutional support at each dip. After having fallen modestly the KSE 100-share index finally ended with an extended gain of 26.62 points at 5,372.

Brokers said the weekend rally always paves the way for another run-up after the trading resumes next week as the pent-up demand takes the control of the market after weekly clearing.

The pace of early selling was further accelerated owing to cancellation of KSE amended rules seeking some changes in the carryover transactions (Badla business) by the Securities and Exchange Commission of Pakistan (SECP) as the amendments were carried without its prior approval, brokers said.

Ready absorption of all the sale offers by the hungry bulls again put the market back on the rails as bears failed to line up follow-up support from any other quarter.

After having risen by about six per cent during the week, the KSE 100-share index did not look back at the weekend session and after initial reaction managed to finish with an extended gain of 26.51 at 5,371.52 well above the crucial level of 5,300 as compared to 5,345.01 a day earlier.

A formidable section of leading investors and brokers who considered the new exposure limits fixed by the SECP as irritant sold in a haste after the unilateral action of the SECP high-ups.

"The SECP action in the prevailing boom conditions appears to be most appropriate as it aims at lowering system risks within the market, which some claims have increased after the KSE amendment", some analysts said.

However, on technical grounds also the market was in a highly overbought position after having risen by 183 points during the week and pushing prices of most of the pivotals to new peak levels under the lead of OGDC, Sui Northern Gas, Sui Southern Gas, National Bank and several others.

"The reaction though was long-overdue was basically psychological as investors seem to have read too much in the SECP action", said a leading analyst "the market will be back on the rails by Monday after the trading resumes on the strength of some other positive factors".

Quarterly working results of some leading sectors, notably banking, cement energy and auto have already started pouring in, indicating higher earnings and the second half could witness a galore of interim dividend, he adds.

There may be some inhibiting factors on the political front but investors are inclined to take cue from the corporate sector and are expected to plan on long-term basis before the national budget.

Prominent gainers were led by Glaxo-SKF, Unilever Pakistan, Abbott Lab, Island Textiles and Javed Omer, up by Rs6.65 to Rs10 but the largest rise of Rs44.50 was noted in Hamza Sugar on speculative buying ahead of Shahbaz Sharif's anticipated return in the backdrop of apex court verdict.

Losers were led by Rafhan Maize and Wyeth Pakistan, off Rs15 and Rs36 followed by Thal Industries, Fazal Textiles, Cherat Cement, International Industries and HinoPak Motors, off Rs2.50 to Rs3.30. Trading volume rose to 699m shares from the previous 648m shares as gainers maintained a comfortable lead over the losers at 198 to 162, with 53 shares holding on to the last levels.

National Bank topped the list of actives, up by Rs4.15 at Rs74.85 on 88m shares followed by Sui Southern Gas, higher by Rs1.15 at Rs38.70 on 70m shares, OGDC, firm by five paisa at Rs63.95 on 60m shares, PTCL, steady by five paisa at Rs41.80 on 55m shares and MCB, higher by Rs2.95 at Rs56.60 on 50m shares.

Other actives were led by D.G.Khan Cement, firm by 15 paisa on 37m shares, Lucky Cement, up by 55 paisa on 34m shares, Nishat Mills, higher by Rs2.05 on 31m shares, Sui Northern Gas, up by Rs1.20 on 30m shares and FF Bin Qasim, lower 20 paisa also on 30m shares.

FORWARD COUNTER: PTCL came in for modest speculative support and rose five paisa at Rs41.90 on 7m shares followed by MCB, sharply higher by Rs1.35 at Rs56.80 on 6m shares, Sui Northern Gas, up by Rs1.35 at Rs73 on 4m shares and Hub-Power, lower 35 paisa at Rs37.75 on 3m shares.

PSO fell by Rs1.25 at Rs286.10, while MCB and Nishat Mills gained Rs1.55 to Rs1.65 at Rs56.80 and Rs47.60 respectively amid active trading.

DEFAULTER COS: Standard Investment Bank led the list of actives despite passing over of the dividend, up 65 paisa at Rs9.55 on 0.786m shares, followed by Fidelity Bank, up by Rs1.50 at Rs12.50 in response to 10 per cent dividend on 0.361m shares and Lafayette Industries, higher by 35 paisa at Rs5 on 0.204m shares.

DIVIDEND: Fidelity Investment Bank, cash 10 per cent, Standard Investment Bank, Progressive Insurance, and Trust Investment Bank, all nil.