09 November 2004	Tuesday	25 Ramazan 1425

KARACHI, Nov 8: Stocks on Monday opened higher as investors covered positions on selected counters at the current levels aided largely by technical factors including perceptions of capital gains.

The interesting feature was that there were no major instances of pre-holiday selling even from the weak-holders owing partly to easing of badla rates, which in turn allowed bulls to have a field day despite late selling on some of the counters.

The weekend recovery was, therefore further extended as leading base shares came in for renewed support at the still attractively lower levels under the lead of energy sector and finished with fresh gains.

The KSE 100-share index recovered another 26.55 points at 5,378.85 as compared to 5,352.20 at the weekend, the highest and lowest levels being the previous close and 5,383.31 respectively.

The index may not jump up to its pre-reaction level of 5,620-point just in one go but it is now pretty sure that it will continue its current upward drive after consolidating initial gains, analysts said adding "all the aiding factors to its upward journey are now in its favour and post-eid holiday sessions could witness a major change in the market psychology".

Leading index shares including OGDC, PTCL, PSO, and some others are now on the recovery path as the falling world oil prices and status quo on the local front could significantly add to their profits, they said.

Active short-covering in the oil marketing companies followed by reports of easing of world prices and official announcement not to increase local retail selling rates during the current month triggered fresh active support in PSO, Shell Pakistan and refinery shares.

The other supporting positive factor was good news from the carryover market where badla rates has dropped into a single digit and so did investment from the high mark of below Rs25 billion, brokers said.

"Bush factor is still to manifest itself but after the end of the holy month, the possible chief beneficiaries of it are already bracing themselves for a big catch", says a leading analyst.

"I still hold the view that the KSE index could add another 200 to 300 points to its current levels if all goes well on the political front in the backdrop of opposition's threat of mass movement against the 17the constitutional amendment", he adds.

Reports of an increase of 16 per cent in export during the last month, lower lint cotton prices, could significantly add to the textile export during the current quarter ending Dec 31, brokers said.

All the economic indicators point to a robust share market in the coming weeks sans the fresh galore of corporate announcements but healthy interim reports poring in daily could well form a strong base for future speculative buying on selected counters, they said.

Plus signs, therefore, again dominated the list, leading gainers being Artistic Denim, Security Papers, Noon Pakistan, Al-Ghazi Tractors, HinoPak Motors, National Refinery and Treet Corporation, which posted gains ranging from Rs4 to Rs17.

Other good gainers were led by Zulfiqar Industries, Millat Tractors, Shell Pakistan, ABAM Growth Fund (right), ICI Pakistan and Aventis, up Rs2.60 to Rs14.

Losers were led by Abbott Lab, Shakarganj Sugar, New Jubilee Insurance, BOC Pakistan, Atlas Honda, Unilever Pakistan and Wyeth Pakistan, off Rs2.30 to Rs15.50.

Trading volume showed a slight rise at 132m shares from the previous 101m shares as gainers held a comfortable lead over the losers at 180 to 101, with 34 shares holding on to the last levels. PPL topped the list of actives, up Rs1.75 at Rs119.30 on 15m shares followed by Sui Northern Gas, higher by Rs2.80 at Rs52.40 also on 15m shares Fauji Fertilizer Bin Qasim, up by 20 paisa at Rs21.40 on 13m, D.G. Khan Cement, up 45 paisa at Rs50.80 on 11m shares, OGDC, firm by 10 paisa at Rs66.25 on 9m shares, Lucky Cement, up by 55 paisa at Rs36.55 on 7m shares and Bank of Punjab, easy five paisa at Rs59.60 also on 8m shares.

Other actives were led by Nishat Mills, lower 35 paisa on 7m shares, PICIC Growth Fund, up 65 paisa on 5m shares, MCB, up 30 paisa on 4m shares and ICI Pakistan, higher by Rs2.60 also on 4m shares.

FORWARD COUNTER: Sui Northern Gas, higher by Rs2.80 at Rs52.50 on 3m shares followed by D.G.Khan Cement, higher 50 paisa at Rs51 also on 3m shares, OGDC, lower 15 paisa at Rs66.50 on 2m shares and Bank of Punjab, unchanged at Rs59.60 also on 2m shares.

DEFAULTER COS: Trading on this counter remained slow as investors were not inclined to make fresh commitments in view of the coming eid holidays. Crescent Spinning was, however, an exception, which came in for stray selling and fell by 10 paisa at Rs3.30 on 0.119m shares. All others were modestly traded.

BOARD MEETINGS: Inter-Asia Leasing on Nov 11, English Leasing on Nov 12.