22 May 2004	Saturday	02 Rabi-us-Saani 1425

KARACHI, May 21: Stocks on Friday maintained their recovery drive for the third session in a row as investors continued to build up long positions on selected counters ahead of the budget in anticipation of fiscal incentives and tax reliefs.

The market's buoyant mood was also well-reflected in the KSE 100-share index, which again breached through the psychological barrier of 5,500 and managed to sustain it, thanks to active follow-up support despite weekend profit-selling on certain counters.

Finally, it finished well above this level, indicating that it will resume its forward march to the next chart points boosted by pre-budget speculative rallies. The net change over the day of 33.14 points at 5,510.98 as compared to 5,477.84 a day earlier.

The weekend rally suggests that bulls have decided to test new index levels beyond the previous all-time high of 5,620.00 recorded on April 19. The talk of 6,000 index level during the pre-budget sessions may now have some relevance to the changed political scenario.

Much of the activity, however, again remained centred around the current favourites ensuring handsome capital gains, cement shares being in the forefront despite already ruling at highly inflated levels.

"Some of them have already reached their saturation points, backed by higher exports and productions," says a leading analyst. "A 10-rupee share ruling six-time higher than its face value is always ripe for a correction."

Trend-setters, notably OGDCL, PTCL, Hub-Power followed by National Bank, Sui Northern and D.G. Khan Cement attracted fresh support amid alternate bouts of buying and selling. But the pre-budget speculative buying is expected to support the current run-up and the inflated levels most of the shares had attained. "Their real value will be known during the post-budget sessions," the analyst adds.

"June could be an eventful month for the share business as in addition to the national budget, IPOs of mega issues like Pakistan Petroleum and PIAC will open for public subscription," brokers predict.

The market could get needed boost from the positive statements coming from across the border about the previous peace moves and resolve to continue the process after the new government settles down.

All the sectors again participated in the market run-up under the lead of textiles and individual blue chips on other counters. Big gainers were lead by Atlas Battery, Pakistan Cables, Unilever Pakistan, Millat Tractors, and Aventis, which posted gains ranging from Rs9 to Rs17.40.

Other good gainers were led by Atlas Honda, Burewala Textiles, Quetta Textiles, Artistic Denim, Bata Pakistan and Gatron Industries, up by Rs4 to Rs7.45. Losses on the other hand were mostly fractional barring Al-Ghazi Tractors, Ferozsons, HinoPak Motors, Javed Omer, Rupali Polyester and Packages, which suffered fall ranging from Rs2 to Rs6.45.

Turnover figure further rose to 533m shares from the previous 506m shares as gainers maintained a strong lead over losers at 266 to 117, with 43 shares holding on to the last levels.

OGDCL topped the list of most actives, up 85 paisa at Rs68.85 on 76m shares followed by Fauji Cement, firm by five paisa at Rs17.30 on 42m shares, Sui Southern Gas, up 55 paisa at Rs35.60 on 39m shares, D.G. Khan Cement, steady by five paisa at Rs61.80 on 37m shares and Sui Northern Gas, higher by 20 paisa at Rs69.85 on 34m shares.

Other actives were led by PTCL, up 35 paisa on 33m shares, Maple Leaf Cement, lower 55 paisa on 23m shares, PIAC, up 75 paisa on 22m shares, F.F. Bin Qasim, unchanged on 21m shares and Nimir Industries, higher by Rs1.50 on 18m shares.

FORWARD COUNTER: Bank Al-Falah again came in for strong support and rose by Rs2.85 at Rs67.35 on 31m shares followed by Sui Northern Gas, lower 15 paisa at Rs69.55 on 4m shares, PTCL, up 35 paisa at Rs43.85 also on 4m shares, PSO, higher by Rs1.20 at Rs270.80 on 2m shares and Hub-Power, firm by 15 paisa at Rs34.65 also on 2m shares.

DEFAULTER COS: Dandot Cement remained in strong demand on market talk of management change and rose further by Rs1.50 at Rs10.50 on 4.397m shares followed by Lafayette, higher by 95 paisa at Rs6.50 on 2.142m shares.

Other actives were led by Quice Foods, firm by 10 paisa at Rs4.90 on 1.974m shares and Service Fabrics, higher by one rupee at Rs3.40 on 1.043m shares. Some others, including Taxila Engineering, were also actively traded mostly on the higher side.

RIGHT SHARES: Ahmed Hassan Textiles, 10 per cent and Shams Textiles 100 per cent.

INTERIM BOARD MEETINGS: Adam Sugar, on May 25; Mubarak Textiles, Fazal Cloth, on May 26; Fatima Enterprises, Pak Elektron Quetta Textiles, Shahtaj Textiles, Apollo textiles, Fawad Textiles, Gadoon Textiles, Mehran Sugar, Yusuf Textiles, Sunrays Textiles, Indus Dyeing and Al-Qaim Textiles, on may 27; and Indus Polyester, Colony Textiles and Towellers, on May 28.