10 August 2004	Tuesday	23 Jamadi-us-Saani 1425

KARACHI, Aug 9: Stocks on Monday extended the weekend rally on active follow-up support on the oversold counters aided by reports of higher earnings. KSE 100-share index posted a fresh rise of 20.44 points at 5363.96.

But the opening was easy amid reports of violence in some parts of the city to protest against the Sunday's bomb blasts but later support allowed the market to finish further higher.

"Investors may have kept a bold face on the strength of positive basic fundamentals but fears are lurking in their minds about the developing situation on the law and order front and its likely negative fallout on the investment climate," says a leading stock analyst.

Report from the corporate front are fairly encouraging but they alone could not be the sole stimulant until backed by the peaceful political background news, he adds.

Banking, cement, fertilizer on reports of higher earnings were in the forefront of shares, which led the market resistance to further marking down. They were later joined by some of the energy shares amid rumours of increase in retail selling prices of oil after about four weeks status quo.

After early hitting the day's lower level at 5,332.80 points on early selling caused by the Sunday's bomb blasts in the city and fear of law and order situation, the KSE 100-share index finally managed to finish with an extended gain of 20.44 points at 5,363.96.

Floor brokers said some of the leading shares are still in an oversold positions and could attract a lot of covering purchases even in a falling market to keep investors in a buoyant mood.

But some others said leading operators, notably financial traders will play safe until the election of Aug 18. Although the market is rife with rumours that Federal Finance Minister Shaukat Aziz will win the election, there could be some upsets in the backdrop of suicide attack on him, brokers said.

"The market is expected to remain volatile until the Aug 18, election as no one will go for a big kill even at the falling prices," they said. Leading gainers were led by Murree Brewery, Jahangir Siddiqui Bank, Feroz sons Lab, Pakistan Services, Jahangir Siddique & Co, Pakistan Cables and EFU Life, which posted gains ranging from Rs5.30 to Rs10.95.

Other good gainers included Arif Habib Securities, Babari Cotton, Gadoon Textiles, Kohinoor Textiles, Thal, Lakson Tobacco, Dawood Hercules and Colgate Pakistan, up Rs3 to Rs5.

Losers were led by Dawood Larencepur, Century Papers, IGI Insurance, Unilever Pakistan, Javed Omer, Wyeth Pakistan and Rafhan Maize, off Rs3.90 to Rs28. Trading volume rose to 293m shares from the previous 284m shares as gainers maintained a fair lead over the losers at 166 to 149, with 40 shares holding on to the last levels.

The most active list was topped by Fauji Fertilizer Bin Qasim, up 45 paisa at Rs22.30 on 35m shares, followed by Maple Leaf Cement, up 55 paisa at Rs40.40 on 29m shares, MCB, up 70 paisa at Rs55 on 22m shares, National Bank, higher by 85 paisa at Rs73.30 on 21m shares, Hub-Power lower 60 paisa at Rs30.90 on 18m shares.

Other actives were led by DG Khan Cement, lower 40 paisa at Rs57.80 on 16m shares, Bank of Punjab, up 70 paisa on 15m shares, OGDC, higher 45 paisa on 14m shares, Fauji Cement, lower 45 paisa also on 14m shares and Askari Bank, up 95 paisa on 13m shares.

FORWARD COUNTER: Pakistan Petroleum came in for active short- covering at the lower levels, up Rs2.85 at Rs107.95 on 30m shares followed by Hub-Power, lower by 60 paisa at Rs30.90 on 10m shares, OGDC, up 40 paisa at Rs64.40 also on 5m shares.

FF Bin Qasim maintained its upward drive and rose by another 45 paisa at Rs22.40 on 4m shares, PTCL, up 15 paisa at Rs43.25 on 3m shares. Engro Chemical was leading gainer after PPL, up Rs1.15 at Rs94.65 on modest turnover.

DEFAULTER COS: Crescent-Standard Bank attracted profit-selling at the higher levels and fell by 35 paisa at Rs11 on 0.390m shares followed by Dandot Cement, easy 15 paisa at Rs9.60 on 0.232m shares and Indus Polyester, up 55 paisa at Rs7.60 on 0.152m shares.