January 31, 2006	Tuesday	Muharram 1, 1427

KARACHI, Jan 30: The KSE 100-share index on Monday maintained its upward thrust and added another 80 points to the weekend tally and settled above the level of 10,528 despite the weakness of PTCL. It narrowly missed its next target of 10,600 points.

Terribly overvalued shares were again under virtual squeeze under the lead of National Bank, MCB, and Bank of Punjab and no one could precisely tell what is behind this scramble and after that.

Trading volume soared to the year’s peak level of over 600m shares, but unlike the previous sessions it was not the outcome of a massive activity in an active scrip but judiciously shared by all the leading dozen actives.

Trading, therefore, resumed on a bullish note as investors continued to build-up long positions on bank, cement and oil sectors as no one among them is inclined to miss an attractive bait of capital gains and higher payouts.

The KSE 100-share index crossed the crucial barrier of 10,500 at 10,527.85, up 80.29 points despite being in a highly overbought position and needs correction before resuming its upward journey to its next chart point.

Apart from speculative buying aided by reports of higher corporate payouts, the current price flare-up was also attributed to the reported settlement of the issue of non-member chairman of the Karachi Stock Exchange after a long tussle with the former chief of the Security and Exchange Commission of Pakistan(SECP).

The credit for the amicable settlement of the issue goes to the new chairman of the SECP who was in the city last week and held long meetings with the KSE high-ups on the demutualization of the bourse and the non-member chief.

“It is a good beginning for the chief of the regulatory commission during his maiden visit and reflects his strong convincing power to settle the issue,” a leading analyst Hasnain Asghar Ali said, “ but it is no one’s victory or defeat and aims at cordial relations between the two.”

But what is more important is that the market did not look way and maintained its sustained run-up despite the presence of some external depressants including train accident in Punjab and negative news from the northern areas, Faisal Abbas, another stock analyst said.

No one could deny the fact that technical correction is overdue but as the bulls are not inclined to leave the arena the bull-run is extended beyond its mandate, he added.

Banks’ shares, under the lead of National Bank, Bank of Punjab, and MCB again led the market advance amid talk of higher dividend and bonus shares followed by cement, oil and some leading shares on other counters including fertiliser giants.

Board meetings of some of them are already held during the last two days, while some of them are meeting tomorrow. Some leading shares have already announced higher interim cash dividend and bonus shares.

Leading gainers were led by Colgate Pakistan and Treet Corporation, up by Rs15.50 to 16,followed by Indus Motors after a higher dividend of 50 per cent, Engro Chemical, Abbott Lab, Clariant Pakistan, Gillette Pakistan, Suzuki Motors, and Arif Habib Securities, which posted gains raging from Rs7.45 to 11.80. There were many other good gainers also.

Prominent losers included Pakistan Services and Sanofi Aventis, off Rs10.65 and 16.05 respectively. Others to follow them were Siemens Pakistan, BOC Pakistan, Hino Pakistan, Atlas Honda, Mustehkam Cement, and Shell Pakistan, which suffered fall ranging from Rs5 to 8.60.

Trading volume rose to 628m shares from the previous 570m shares as gainers maintained a strong lead over the losers at 245 to 149, with 35 shares holding on to the last levels.

Fauji Fertiliser Bin Qasim topped the list of actives, higher by Rs1.10 at Rs41.80 on 67m shares followed by D.G. Khan Cement, up Rs3.10 at Rs125.65, PTCL, off 90 paisa at Rs66.15 on 47m shares, National Bank, higher by Rs5.95 at Rs245.95 on 46m shares, OGDC, firm by 25 paisa at Rs127.80 on 32m shares, Nishat Mills, up Rs5 at Rs133 on 28m shares, and Bank of Punjab, higher by Rs1.55 at Rs120.85 on 27m shares.

Other actives were led by MCB, up Rs5.75 at Rs199.80 on 23m shares, Pakistan Petroleum, higher by Rs1.45 at Rs217.05 on 24m shares and Telecard, firm by Rs1.05 at Rs22.70 on 23m shares.

FORWARD COUNTER: Speculative issues on the forward counter also maintained their upward drive on active short-covering in the newcomer February settlements. Fauji Fertiliser Bin Qasim was leading among them, up Rs1.15 at Rs42.35 on 15m shares followed by National Bank, higher by Rs4.45 at Rs248.85 also on 15m shares and Telecard, firm by Rs1.05 at Rs22.95 on 14m shares.

Other actives were led by Pakistan Petroleum, higher by Rs1.85 at Rs220.45 on 11m shares, and D.G.Khan Cement, up Rs2.85 at Rs127.10 on 11m shares.

DEFAULTER COs: Crescent Fibre and Dandot Cement were actively traded amid alternate bouts of buying and selling. While the former rose by 50 paisa at Rs11 on 0.304m shares, the latter was quoted lower by 40 paisa at Rs17.35 on 0.107m shares. Others were modestly traded.

DIVIDEND: Indus Motors, cash 50 per cent, Clariant Pakistan, stock dividend 40 per cent, final cash 35 per cent, total cash 105 per cent together with the interim, Tri-Pack Films, cash 25 per cent, Sigma Leasing, interim cash six per cent, Siemens Pakistan, interim 60 per cent, and Pakistan Petroleum, cash interim 35 per cent.

BOARD MEETINGS: Al-Asif Sugar, Faran Sugar and Bawany Sugar on Jan 31, PICIC Commercial Bank, Attock Refinery, Pakistan Oilfields, Attock Petroleum, Plyron, on Feb 2, National Refinery, on Feb 3, Fayzan Manufacturing Modaraba, and Abbott Lab on Feb 7, Al-Ghazi Tractors on Feb 15, Faysal Balanced Growth Fund and Faysal Income & Growth Fund, on Feb 18.