January 10, 2006	Tuesday	Zilhaj 9, 1426

KARACHI, Jan 9: As predicted by some analysts, the KSE 100-share index on Monday touched the psychological barrier of 10,000 points for the second time in a year in its trading history but failed to sustain it owing to late pre-Eid holiday profit-taking by some of the leading financial institutions.

But indications are that the post-Eid holiday trading sessions could witness it firmly settled beyond this level, as a deficit of only 10 points reflects that bulls are not inclined to play beyond this level. The last all-time peak level was hit last year at 10,300 points before the March plunge.

It finally ended the session at 9,990.19, only 10 points away from the coveted level, up 103.89 point or 1.05 per cent as compared to 9,886.30 at the last weekend.

“By now it should have been well above this historic level had there not been last March’s market crash,” says a leading analyst. “But now I don’t foresee price manipulation by the big ones, as corrective steps have already been taken by the authorities.”

“The year 2006 could witness its rise to the index level of 12,000 if all goes well on the political front,” some others predict but warn investors to play safe before riding the bandwagon of a rising market.

There were no clear evidence of the presence of foreign buying but some analysts believe the current sharp rise in some of the oil and bank shares is there mainly in selective shares.

National Bank, MCB, PTCL, Pakistan Petroleum, Pakistan Oilfields and OGDC followed by fresh oil and gas discoveries appear to be leading among them.

Karachi stocks, therefore, closed the pre-Eid holiday session on a bullish note, as leading shares posted good gains on the blue chip counters aided by fresh active covering purchases in National Bank and some leading oil shares.

As widely speculated, the coveted level of 10,000 point did not remain an elusive goal during the pre-Eid holiday trading as leading investors, despite being a bit worried over the developing political situation on the Kalabagh dam and Balochistan issue, hit the target though briefly.

The market will remain closed for Eid holidays from Jan 10 (Tuesday) and will reopen next Monday and fears that anything could happen during the intervening holidays kept investors most of the time on the sidelines.

“Despite the presence of some market irritants, the future market outlook appears to be bullish as was the presence of strong selective buying on those counters where potential of capital gains still exists,” floor brokers said.

Plus signs dominated the list under the lead of Nestle Pakistan and Wyeth Pakistan, up by Rs40 and Rs100 at Rs840 and Rs2,100 against the face of Rs10, respectively, followed by National Bank, Artistic Denim, Siemens Pakistan, Ferozsons Labs, Daoowd Hercules, Gillette Pakistan, Unilever Pakistan, HinoPak Motors and Pak-Suzuki Motors, which posted gains ranging from Rs9 to Rs30.

Mustehkam Cement and Colgate Pakistan fell by Rs7.40 and Rs12, respectively. Other prominent losers included EFU General Insurance, Mitchell’s Fruits, Huffaz Pipes, and Shell Pakistan, off Rs3 to Rs4.

Trading volume fell to 321m shares from the previous 383m shares but gainers maintained a strong lead over losers at 219 to 152, with 42 shares holding on to the last levels.

National Bank topped the list of most actives, higher by Rs9.25 at Rs226 on 62m shares, followed by MCB, up Rs3.75 at Rs189.75 on 31m shares, Fauji Fertilizer Bin Qasim, firm by 45 paisa at Rs40.15 on 28m shares, OGDC, up Rs1.15 at Rs121.75 on 22m shares, Lucky Cement, higher by Rs1.15 at Rs92.85 on 18m shares. PTCL, steady by 45 paisa at Rs66.50 on 14m shares, and Pakistan Petroleum, higher by Rs1.80 at Rs216.50 on 10m shares.

Other actives were led by DG Khan Cement, up 25 paisa on 16m shares followed by Nishat Mills, higher by one rupee at Rs118 on 13m shares and Pakistan Oilfields, higher by Rs5 on 9m shares.

FORWARD COUNTER: National Bank was also actively traded on this counter also, higher by Rs9.15 at Rs227.55 on 19m shares, followed by MCB, up Rs5 at Rs191.50 on 11m shares and Lucky Cement, firm by 75 paisa at Rs93.60 on 10m shares.

Fauji Fertilizer Bin Qasim rose by 40 paisa at Rs40.50 on 7m share, Pakistan Petroleum, higher by Rs2.85 at Rs218.45 on 6m shares and some other also rose amid light trading.

DEFAULTING COS: Crescent Fibre and Unity Modaraba came in for active support and rose by one rupee and 10 paisa at Rs18 and Rs1.20, respectively, on 0.141m and 0.136m shares.

Price changes on the other hand were fractional. Kausar Paints and Ghandhara Industries were marked down by one rupee to Rs2.75, while other fell and rose fractionally.

DIVIDEND: Al-Noor Sugar, cash 10 per cent; Mitchell’s Fruit Farm, 20 per cent; ALfalah GHP, an investment management fund, bonus shares at the rate of one per cent on its units; Khairpur Sugar, Haseeb Waqas Sugar and Dewan Sugar Mills, all omitted the dividend for the last year.