24 February 2005	Thursday	14 Muharram 1426

KARACHI, Feb 23: The Karachi Stock Exchange broke all previous records on Wednesday when dividend-driven buying euphoria was further intensified amid unprecedented price flare-up.

The KSE 100-share index finally breached the crucial barrier of 8,000 points as volume figure soared to a record level of over 1 billion share mark, adding about Rs68 billion to the market capital at Rs2,279 billion.

Stocks Breach Crucial 8,000-point Barrier

KARACHI, Feb 23: The KSE-100 share index on Wednesday breached the widely anticipated crucial barrier of 8,000 boosted by market talk of higher dividend and bonus shares by the bank and energy shares.

It finally closed at 8,180.79 points as compared to previous 7,925.70 points, up 255.09 points, signalling that it may not be the end of speculative trading and bargain-hunting, which is dominating the market since January.

"It appears that the trick behind the number game is to corner the leading base shares, notably the OGDC, PPL, PTCL and PSO for intra-day trading and get out of the holding after pushing the index to a pre-determined level," some analysts commenting on sharp rise during the last two weeks said.

OGDC, which holds a weight age in the index was up over Rs7 around Rs.107.37, which added about 150 points to the total. However, in any case the meteoric rise of the index was not based on EPS even of some leading companies, which generally give the needed push to the index level, as viewed in the backdrop of general world standards, they added.

During the last and the current month it has risen by 30 per cent, pushing the market capital to Rs2,240 billion, close to the figure of $40 billion and the interesting thing is that where the end will come, analysts said.

"But the basic market fundamentals in terms of dividend yields might be positive but one could precisely tell whether or not the run-up is genuine or manipulated," they said.

"Now there is a talk of 10,000 index level," some others say. "If the current buying euphoria is maintained anything could happen in the months to come," they said.

All roads may not have leading to the Khalian Street (Pakistan Wall Street) but some bargain-hunters have made it look so at least for the time being, although the situation may be fraught with high risks.

Energy, cement, banks and some leading textile shares, their interim board meetings are due before the current month is out, were leading both in terms of gains and turnover figure.

Plus signs again dominated the list under the lead of National Refinery, up Rs26 on strong post-interim dividend of 50 per cent covering purchases followed by Pakistan Refine, IGI, Attock Refinery, Pakistan Oilfields, PPL, Atlas Honda, Pakistan Services, and Aventis, up Rs10 to Rs22.20.

Many others also rose sharply higher, major gainers among them being PSO, Nishat Chunian, Shell Pakistan, Zulfiqar Industries, OGDC also rose by Rs7.45 to 13.10. Losses on the other hand were fractional barring Indus Dyeing, Jahangir Siddiqui & C0, Siemens Pakistan, Dawood Hercules, Shezan International and AKD Securities, off Rs4 to Rs23.95.

The turnover figure also surpassed the previous all-time high record of 1.29 billion shares at 1.086 billion as compared to 854m shares a day earlier. Gainers held a strong lead over the losers at 210 to 161, with 47 shares holding on to the last levels.

OGDC topped the list of most actives, sharply higher by Rs7.45 at Rs107.35 followed by PTCL, higher by Rs1.55 at Rs69.35 on 166m shares, National Bank, sharply higher by Rs6.90 at Rs134.40 on 78m shares, Fauji Fertilizer Bin Qasim, up Rs1.25 at Rs33.75 on 75m shares and Hub-Power, up Rs1.55 at Rs34.25 on 62m shares.

Other actives were led by Fauji Cement, lower 15 paisa ahead of its board meeting on 50m shares, Pakistan Oilfields, sharply higher by Rs22.20 also on 50m shares, DG Khan Cement, easy 20 paisa on 43m shares, Sui Northern Gas, up one rupee also on 43m shares and Bank of Punjab, higher by 85 paisa on 36m shares. Some others were also actively traded.

FORWARD COUNTER: PPL both settlements were actively traded, up Rs14.30 and 16.74 on 57 and 39m shares respectively followed by PTCL, up 85 paisa at Rs68.95 on 24m shares and OGDC, higher by Rs7.69 at Rs110.24 on 24m shares. Engro Chemical, PSO and Pakistan Oilfields also came in for active support and rose by Rs7.40, 9.45 and 22.20 in that order.

DEFAULTER COS: Kashmir Edibles, topped the list of actives on this counter, up 10 paisa at Rs4.40 on 0.95m shares followed by Mukhtar Textiles, rose by Rs1.50 at Rs9.50 on 0.165m shares and Crescent-Standard Bank, firm by 25 paisa at Rs16.25 on 0.145m shares.

DIVIDEND: National Refinery, interim cash 50 per cent, Indus Motor Company, interim 40 per cent and Beema Pakistan, nil.