07 March 2005	Monday	25 Muharram 1426

Massive foreign and local buying in the PTCL, triggered by the reports of sell-off before June, pushed the share index to its new career-best level.

Analysts have predicted that the current run-up could be sustained next week also as leading energy shares were under speculative squeeze followed by the unprecedented price flare-up.

Despite mid-week massive battering on near-panic selling by some leading Punjab-based punters, the Karachi stocks virtually raced towards their new chart level of 9,000 points on heavy covering purchases aided by the reports of early sell-off of mega state-owned units, notably the PTCL and the National Investment Trust (NIT).

The technical committee was expected to evaluate data by 10 prospective buyers of the PTCL. The NIT will be split into five units, of which two will be given to the National Bank, the Bank of Punjab and the Faysal Bank - the major shareholders of the NIT. Remaining three will be privatized through open bids.

The market's sustained rise to 9,000 index level was reinforced by the rout of bears and ready absorption of selling, notably at the rise.

Over the week, the KSE 100-share index added another 507 points or 12 per cent to its previous tally and Rs131 billion in the market capital at Rs2,428 billion.

Heavy speculative buying in energy sector, notably the petroleum shares based on high earnings due to large oil and gas discoveries, did not allow investors to take even a technical breather. They continued to buy the OGDC, the Pakistan Oilfields and the Pakistan Petroleum, irrespective of asking prices, all finished at their peak levels, so far.

"I did not rule out the possibility of foreign buying on the selected counters including the PTCL, the OGDC and the PPL, but it was pretty difficult to gauge its size at this stage", said a leading broker.

Fears were lurking in many minds whether or not the current bull-run was genuine or manipulated. There could be difference of opinions but the developing scenario in oil and gas sectors indicated that there was something positive and financial investors were not that fools to put all eggs in one basket, some analyst said.

The PPL at Rs278, the OGDC at Rs138, and the Pakistan Oilfields at Rs345 against their face values of Rs10, signalled that those who knew the secret of price flare-up in them were taking calculated steps even at inhibiting rates.

Technical correction was overdue but beyond the level of 9,000 points, and that would add to its inherent strength rather than creating panic among genuine investors.

The KSE 100-share index set a new record of single session gain of 296 points or 3.54 per cent after it broke through two barriers in a row on massive short-covering in the PTCL, the OGDC, the PSO, and the Pakistan Oilfields at the overnight lows.

The previous single-session largest gain was of 225.89 points touched on January 11, on heavy New Year buying in most of the leading shares having the potential to come out with higher payouts, dealers said.

A cash dividend of 200 per cent plus 10 per cent bonus shares on a five-rupee share(100 per cent interim already paid) by the Al-Ghazi Tractors, a leading Dubai-based company and 13 per cent interim by the Hub-Power Company were other supporting factors fuelling the bull-run.

There was no trace of the overnight panic sell-off as bulls entered the market with a bang and ordered massive buying in leading energy shares, driving the bears out of market most of whom watched helplessly the market's meteoric recovery from the sidelines.

"We don't think bears could have a say in setting the market trend at least for near-term", said an analyst, "there appeared a remote possibility of a big shakeout before the index level touched the next target of 9,500, which now was an elusive goal".

Bulls seemed to be out to hit the mark irrespective of end-results and the next week's trading could be crucial in more than one count as the total rout of bears had changed the entire future outlook, he said.

Energy shares led the market recovery under the lead of the OGDC, the PSO, the Pakistan Oilfields, the National Refinery and the PPL, which posted sharp gains under lead of the Pakistan Oilfields, the Pakistan Petroleum, the PSO and other energy shares, notably the National Refinery.

Other prominent gainers included the Bank of Punjab, Javed Omer, the Muslim Insurance, the Indus Dyeing, the Mari Gas, the Ferozsons Lab, the ICI Pakistan, the PNSC, the Noon Pakistan, Zulfiqar Industries and the Al-Ghazi Tractors on post-dividend buying.

Losers were led by the AKD Securities, off Rs23.50 followed by the Nishat Chunian, the Sapphire Fibre, the Island Textiles, the Pakistan Refinery, the Berger Paints, the Security Papers and the Atlas Honda.

FORWARD COUNTER: The PPL, the OGDC and the PTCL remained in strong demand in line with their ready price flare-up and all ended at their new career-best levels of Rs277.70, Rs142.35, and Rs78.15, respectively amid heavy trading, including 167 million and 119 million shares in the PTCL and the PPL at the weekend session.

The Bank of Punjab, the National Bank, the MCB, the ICI Pakistan, the Engro Chemical, the Fauiji Fertiliser, the Pakistan Oilfields, Kot Ado and the PSO followed them finishing the week with smart gains.