January 24, 2006	Tuesday	Zilhaj 23, 1426

KARACHI, Jan 23: The KSE 100-share index on Monday surpassed its previous all-time high record of 10,303.00 at 10,346.47 points boosted by fresh heavy buying in the leading base shares under the lead of bank, auto and cement sectors.

Analysts attributed the fresh flare-up partly to the perception of higher corporate dividend and partly to a robust economic growth. It ended with a fresh rise of 118.60 points or 1.16 per cent after touching the session’s peak level of 10,351.00 adding Rs32.756bn to the market capital at Rs2,983.986bn.

It surpassed its previous record level of 10,303.00 points hit on March 15 last year but followed by a massive market crash amid persistent speculative selling, which pushed it down as low as 7,000 points or 25 per cent during the post-record trading.

“All previous records both in terms of price flare-up in individual shares and market capital were bettered in a terribly liquid market where instances of speculative squeeze are rare”, some analysts said.

A section of investors is, however, still in two minds about the market’s current meteoric rise as memories of last year’s market crash, which wiped out Rs50 including Rs12 billion of the small investors from the market capital, are afresh in their minds. But this time it appears to be a different story based on some positive fundamentals.

But the current flare-up was progressive and is supported by more than one positive news and is expected to be sustained well above this level around 12,000 points in the coming weeks.

“Expectations of higher dividend and bonus shares, an attractive bait of ambitious privatization programme of state-owned units and higher economic growth rates would not allow investors to stay on the sideline lines”, analysts said.

The market is literally operating under an old adage “as goes the January so goes the market in the new year trading”, they said, adding “the last three weeks trading reflects that new year debut is promising despite the presence of some political irritants including dams and Balochistan issues”.

The important thing was that there was virtually beeline of buyers rather than sellers at the inhibiting higher levels and that could not be termed as speculative bull-run, some others said.

“National Bank at Rs243 and MCB at Rs197.50 against their face value of Rs10, for instance, signals that the investor scramble for them at the inflated levels is not without some sound reasons billed under the prudent investment strategy”, most leading brokers believe.

Bulk of the support remained confined to bank, cement and some oil shares irrespective of the inhibiting ruling inflated prices, while some IT shares also came in for active support and for good reasons too.

Plus signs again dominated the list under the lead of Siemens Pakistan and Wyeth Pakistan, up Rs45.95 and Rs53.75 followed by Al-Ghazi Tractors, National Bank, Atlas Honda, Indus Motors, Colgate Pakistan, AKD Securities, Gillette Pakistan and Treet Corporation, which posted fresh gains ranging from Rs10.30 to Rs18.50. There were several good gainers also, rose by Rs5 to Rs9.90.

Loses were led by Javed Omer, Artistic Denim, International Industries, Singer Pakistan, Dawood Hercules, Sanofi Aventis, Zulfiqar Industries, IGI Insurance and Nestle Pakistan, off Rs4 to Rs190.

Trading volume rose to 428m shares from the previous 425m shares as gainers maintained a strong lead over the losers at 251 to 141, with 34 shares holding on to the last levels.

National Bank again topped the list of most actives, higher by Rs11.55 at Rs242.95 on 51m shares followed by Maple Leaf Cement, up by Rs1.95 at Rs46.75 on 38m shares, KESC, firm by 45 paisa at Rs10.10 on 31m shares, MCB, up by Rs6.55 at Rs197.50 on 22m shares, PTCL, steady by 55 paisa at Rs66.75 on 20m shares, OGDC, up by 70 paisa at Rs123.45 on 17m shares and Bank of Punjab, higher by Rs2.65 at Rs119.35 on 15m shares.

Others were led by TRG Pakistan, up by 25 paisa on 16m shares, PICIC, higher by Rs3.05 on 15m shares and D.G.Khan Cement, lower 25 paisa on 10m shares.

FORWARD COUNTER: Maple Leaf Cement also came in for active support on the cleared list and was quoted higher by Rs1.75 at Rs46.75 on 12m shares, National Bank, up by Rs11.58 at Rs243.23 on 12m shares and PICIC, up by Rs2.85 at Rs75.60 on 7m shares.

MCB led the list of other actives, higher by Rs6.10 at Rs197.30 on 7m shares and Telecard, higher by Re1 at Rs19.05 on 5m shares. Others also rose but on light turnover.

DEFAULTER COS: Qayyum Textiles came in for active support and rose by 40 paisa at Rs2.50 on 0.380m shares, while on the other hand Service Fibre, fell by 25 paisa at Rs1.95 on 0.149m shares. Others were traded but mostly on the higher side amid light trading.

BOARD MEETINGS: Kohinoor Sugar, on Jan 25, Lucky Cement on Jan 26, Noon Sugar, Crescent Steel, Shakarganj Sugar, Automotive Battery, Sanghar Sugar Mills, on Jan 28, Indus Motors, Clariant Pakistan, Arif Habib Securities, Dawood Hercules, Sanofi Aventis on Jan 30 and Ferozsons Lab, Engro Chemical and Crescent Sugar on Jan 31.