15 May 2004	Saturday	24 Rabi-ul-Awwal 1425

KARACHI, May 14: Stocks on Friday finished with an extended gain as follow-up support figured prominently on selected counters at the lower levels amid an actively traded session.

The KSE 100-share index recovered another 56.19 points at 5,454.69, adding Rs16bn to the market capital at Rs1,466bn.

The strong weekend rally fuelled by a positive statement by the Indian Congress leader about India-Pakistan peace talks buoyed bulls who confidentally demonstrated that the current consolidation phase is now over as is reflected in a large volume.

Owing to strike in the city called by the MMA as a protest against the killings of its workers, fears of violence, however, dominated the activity as investors mostly played safe. But there was a noticeable change in the trading pattern in the afternoon session as buying interest spilled over into all the counters after financial traders resumed their covering operations, though on selected counters.

The KSE 100-share index rose by 56.69 points but ended well below the day's best levels as follow-up support turned shy. It finally finished at 5,454.69 as compared to 5,398.50 a day earlier. The breach of the barrier of 5,400 was, however, welcomed as it could well lead the market to its pre-reaction levels.

The weekend rally is always considered a prelude of a big run-up when the trading resumes next week and that reflects that the consolidation forces have stepped in after readjusting their positions.

There was a tangible immediate positive investor reaction to the Indian elections. The long-term impact of defeat of the Vajpayee government or victory of the Congress will essentially depend on the policies of the new government, analysts said.

"The next couple of weeks will show whether or not the current peace initiatives taken by the Vajpayee government will have the approval of the new ruling New Delhi elite despite an initial pledge to continue peace moves," they said.

On technical grounds, the market behaved in line with its fundamentals rather than the surprise results of the Indian elections and its likely impact on the India-Pakistan future relations.

The cement sector again led the market resistance to further decline on renewed support aided by reports of higher earning and exports and market talk of handsome payouts, brokers said.

Overvalued shares as well as volume leaders also came in for active support late in the evening and enabled the market to close the week on a firm note after earlier highly erratic price movements.

Plus signs were strewn all over the list under the lead of Parke-Davis, Aventis, Island Textiles and Grays of Cambrdige, which posted gains ranging from Rs10 to Rs15.

Other good gainers included Shahtaj Sugar, Kohat Cement, Sitara Chemicals, Nestle MilkPak, Atlas Honda and Shell Pakistan, up by Rs5 to Rs9.

Losses on the other hand were mostly fractional barring Mehmood Textiles, Packages, New Jubilee Insurance, Fazal Textiles and National Foods, which were marked down by Rs3 to Rs6.

Trading volume rose to 481m shares from the previous 352m shares as gainers maintained a strong lead over the losers at 222 to 87, with 38 holding on to the last levels.

The most active list was topped by Fauji Cement, up one rupee at Rs17.20 on 111m shares, followed by Maple Leaf Cement, higher by 95 pasia at Rs44.45 on 49m sgares, D.G. Khan Cement, up Rs1.30 at Rs59.80 on 32m shares, OGDCL, firm by 50 paisa at Rs67.65 on 26m shares and Saadi Cement, up Rs1.50 at Rs14.80 on 24m shares.

Other actives were led by Lucky Cement, steady 55 paisa on 21m shares, Sui Southern Gas, higher by Rs1.25 on 20m shares, Hub-Power, firm by 25 paisa on 19m shares, National Bank, up 60 paisa on 16m shares and PTCL, lower 15 paisa also on 16m shares.

FORWARD COUNTER: Share values also rose on this counter under the lead of PSO, up Rs3.20 at Rs270.40 on 3m shares, but PTCL fell by 20 paisa at Rs43.65 on 4m shares.

Bank al-Falah again led the list of actives, up 50 paisa at Rs64.95 on 7m shares followed by provisionally listed Abamco Fund, off 60 paisa at Rs9.60 on 5m shares and Hub-Power, up 30 paisa at Rs34.70 on 4m shares.

DEFAULTER COS: Dandot Cement attracted active support and was marked up by 50 paisa at Rs7.50 on 0.356m shares followed by Standard Bank, higher by 30 paisa at Rs9.10 on 0.204m shares and Indus Polyester, unchanged at Rs6.55 on 0.112m shares.

BOARD MEETINGS: Maqbool Textiles on May 15; Pakistan PVC on May 17; Shafiq Textiles on May 18; Suraj Cotton on May 19; Shams Textiles and Al-Abbas Sugar on May 20.