04 February 2005	Friday	24 Zilhaj 1425

The KSE 100-share index on Thursday broke through the psychological barrier of 7,000 points boosted by massive buying in OGDC and some other leading base shares and analysts predict it could well prove a take-off point for its forward thrust to the next target, technical corrections here and there notwithstanding.

The total market capital also soared to a new record level of Rs1,937 billion or well over $25bn mark, meeting one of the major demands of foreign funds to enter the Pakistani bourse as active participants.

Stock market crosses 7,000-point barrier

KARACHI, Feb 3: The KSE 100-share index on Thursday confidently breached through the psychological barrier of 7,000 points on heavy buying in the leading index shares notably OGDC, signalling that the best level is still to come after normalcy returns to Balochistan.

During the last week, it made successive abortive bids to cross it but bears resisted bull overtures and allowed it rise above the all-time high level so far after having their pound of flesh in the form of early week correction.

It finally finished with a fresh smart gain of 64.83 points at 7,014.71 after earlier hitting the day's best level at 7,040.00 on massive buying in OGDC ahead of its board meeting and rumours of higher interim. It holds a weigh of 22 per cent in it.

Incidentally, the outstanding feat of the index coincides with the opening of Expo Pakistan, a hearty welcome to the 600 or odd foreign investors and an ideal opportunity to invest also in the capital market, which provides attractive bait for capital appreciation.

The all-time peak level of the index indicates that the Karachi bourse is still the world's best performing market and could well be an envy of foreign investors in the weeks to come.

During the last couple of years, notably from the last year it has performed credibly well as it has risen by about 2,000 points or 250 per cent from 5,000 to 7,000, pushing the market capital to a record 1,940 billion.

"The market capital of well over $25 billion, gives the needed depth to the bourse and meets one of the major demands of the leading foreign funds to enter the Pakistani matket," analysts said adding "already some of them are around and some others may be planning."

Telecom, notably PTCL, energy shares under the lead of OGDC, PSO and Pakistan Petroleum and bank shares in unison boosted the stock trading to new highs on the strength of higher earnings.

The index is expected to keep its upward drive as investors will continue to build long positions on these counters followed by reports of higher dividend, notably from the banking sector.

"Bulls and bears have been locked in a grim fight over the index level," brokers said "while the former are inclined to keep it above 7,000 level, the latter think it should fall to a sustainable level." But the former won the long-fought battles of wits at last.

Plus signs again dominated the list under the lead of Pak-Suzuki Motors, Indus Dyeing, Aventis, Berger Paints, and Treet Corporation, which posted gains ranging from Rs10.90 to Rs22.

There were several other good gainers also including Engro Chemicals, Dawood Hercules, Sapphire Textiles and Gillette Pakistan but the largest rise of Rs25 was noted in Shell Pakistan.

Losers were led by AKD Securities, Colgate Pakistan, Security Papers, Quetta Textiles and Wyeth Pakistan, which suffered fall ranging from Rs6 to Rs33. Trading volume fell to 488m shares from the previous 562m shares but gainers maintained a strong lead over the losers at 213 to 160, with 48 shares holding on to the last levels.

The most active list was topped by OGDC, up Rs1.15 at Rs85.45 on 107m shares followed by Bank of Punjab, higher by Rs3.10 at Rs77 on 71m shares, PTCL, steady by 15 paisa at Rs63.30 on 60m shares, MCB, up Rs1.45 at Rs75.25 on 34m shares and National Bank, higher by Rs1.90 at Rs103.30 on 32m shares.

Other actives were led by Askari Bank, higher by Rs4.40 on 24m shares, Hub-Power, steady 35 paisa on 15m shares, Nishat Mills, up Rs1.90 on 13m shares, PSO, higher by Rs1.80 on 12m shares and Fauji Fertilizer Bin Qasim, easy 10 paisa on 10m shares.

FORWARD COUNTER: PTCL led the list of actives on this counter, easy five paisa at Rs63.75 on 28m shares followed by OGDC, up 85 paisa at Rs86.30 on 21m shares PPL, higher by Rs1.20 at Rs145.25 on 19m shares, and Bank of Punjab, higher by Rs3.70 at Rs77.85 on 13m shares.

Engro Chemical was also actively traded on reports of buying by the management of Dawood Hercules to raise their stake to 51 per cent and so did some others.

DEFAULTER COS: Crescent-Standard Bank again actively traded up 50 paisa at Rs16.65 on 0.690m shares followed by Indus Polyester, up 60 paisa at Rs6.50 on 0.353m shares and Crescent Board, higher by 40 paisa at Rs16.95 on 0.157m shares.