KARACHI, Nov 28: Stocks on Monday resumed trading on a bullish note as investors continued to build-up long positions on cement and bank sectors aided by reports of higher quarterly corporate earnings and market talk of interim dividend. The KSE index ended with an extended rise of 82.63 points at the session’s peak level of 9,147.02.

News from the privatization front also played a major role in sustaining the weekend rally, the interesting feature being that it was spread to all counters rather than a few current favourites.

Positive news on the privatization of controlling shares of oil giant Pakistan State Oil (PSO) possibly by the end of the next month triggered heavy buying in it followed by an early sustained price flare-up and a fresh robust rally.

The KSE 100-share index posted a fresh gain of 82.63 points at 9,147.02 as compared to 9,064.39 at the last weekend as all pivotals managed to finish modestly higher under the lead of National Bank, which has been under pressure on profit-selling, and Pakistan Petroleum. Incidentally, the close was the session’s peak level.

Although index’s forward march beyond the 9,000 level is modest, progressive indication is that big ones are treading safely on a tricky path without taking undue risk reminiscent of the last March collapse, brokers said.

According to reports originating from official sources, names of the prospective buyers had been shortlisted after pre-bid meetings and final bids for the sell-off of Pakistan’s leading oil marketing company, PSO, holding about 70 per cent share in the retail oil business, and the final date was expected to be announced shortly.

According to market sources, the shortlisted companies are judicious combine of both local and foreign companies having a good market reputation and sound financial footing.

PSO and PTCL led to the market run-up, the latter on reports that the sell-off is expected to be completed shortly as talks on the unresolved issues are in progress between the buyer and the government, the official sources said.

“If the sell-off of PSO is carried out as stipulated by the Privatisation Commission, it could overshadow the dust raised on the PTCL issue,” one analyst said and added: “The last month of the current year could be very crucial for the future market trend.”

“All eyes are now focused on the sell-off of PSO as any major breakthrough on this front could push the index to its previous best level and possibly above by the end of the year,” some others said.

Some of low-priced issues followed by cement shares remained in active demand and ended further higher but other current favourites did not show much change and were mostly traded modestly higher.

United Sugar, which recently changed hands and was purchased by another crusher, and Siemens Pakistan were leading among the gainers, up Rs10 and Rs19.75, respectively, followed by Fazal Textiles, Jahangir Siddiqui & Co, and its Capital Market Fund, Adamjee Insurance, Nishat Mills, International Industries, Clover Pakistan and Aventis, higher by Rs5.10 to Rs9.

Unilever Pakistan and EFU Life were prominent among losers, off Rs16 and Rs7, respectively. They were followed by Mustehkam Cement, Attock Petroleum, Bolan Casting, Mitchell’s Fruits, Sitara Chemicals and Honda Atlas, off Rs3 to Rs4.25.

Trading volume fell to 406m shares from the previous 502m shares as gainers held a strong lead over losers at 215 to 156, with 47 shares holding on to the last levels.

National Bank topped the list of actives, up one rupee at Rs183.75 on 32m shares, followed by DG Khan Cement, higher by Rs1.85 at Rs108.20 on 30m shares, Fauji Fertilizer Bin Qasim, firm by 30 paisa at Rs38.25 on 26m shares, Fauji Cement, steady by 20 paisa at Rs27.20 on 24m shares, Nishat Mills, higher by Rs5.20 at Rs109.45 on 24m shares, PTCL, lower 30 paisa at Rs63.80 on 21m shares and Pakistan Petroleum, up Rs4.60 at Rs212.45 on 16m shares.

Other actives were led by Lucky Cement, up Rs1.60 on 19m shares, followed by Maple Leaf Cement, firm by 55 paisa on 16m shares, and Nimir Chemicals, higher by one rupee on 15m shares.

FORWARD COUNTER: MCB came in for active support on this counter and rose by Rs6.45 at Rs161.70 on active buying triggered by reports of share swap arrangement with PICIC on 21m shares, followed by Nishat Mills, higher by Rs4 at Rs111.75 on 11m shares, and National Bank, nominal down by one paisa at Rs187 on 9m shares.