July 03, 2007	Tuesday	Jamadi-us-Sani 17, 1428

KARACHI, July 2: The KSE 100-share index on Monday made the new fiscal debut at a terribly bullish note and broke through two consecutive barriers at 13,930.00 points as analysts predict it appears pretty difficult to contain the current genuine and sustained bull-run and price flare-up at this stage.

“Investors have not gone mad; they have more than one reason to be optimistic about the future share market outlook aided by higher corporate earnings and partly to another pleasant surprise from the NIT when its chief announced its last year’s financial results on Wednesday,” they said adding, “there appears to be no near-term end to the existing bull-run but after the target of 14,000 points was hit.

At one stage, it was only 49 points below its hereto considered an elusive goal of 14,000 at 13,951 but at the last moment bulls gave a breathing space to the massively battered bears and postponed it for another session or two.

Heavy buying in oil, auto, cement and banking shares, which are senior part of the index both by the local investors and foreign, also aided the index to set up new record.

It finally finished the session at 13,929.70 after having broken the barrier of 13,800 and 13,900, up 157.24 points or 1.14 per cent adding Rs47 billion to the market capital at Rs4,066 billion. The free-float 30-share index also rose by 116.60 points at 17,110.11 points.

“The index level of 14,000 points is expected to be crossed any session even tomorrow but what next is the question being debated in the relevant quarters,” analyst Ashraf Zakaria said adding: ”it may rise further but after having gone through a technical correction being in a highly overbought position.”

Although index heavy weights, notably OGDC, Pakistan Petroleum, National Bank, PTCL, Lucky Cement and some other leading shares were behind the current sustained run-up, incredible role played by the second-tiers stocks for keeping the buying interest intact on an attractive bait of capital gains could well be the chief inspiring force behind the sustained rally.

Pak PTA, TRG Pakistan, Fauji Cement, Dewan Cement and Nimir Chemicals, which are considered undervalued absorbed much of the selling overflowed from the overvalued shares.

“What seems to have given the credence to the market’s current outstanding performance was, among other things, said to be strong presence of the foreign support,” analyst Hasnain Asghar Ali said adding: ”but what make them so sure of the market’s viability in the polarised political scenario is not clear.”

Interim corporate earning reports for the half year ended June 30, are said to be on the higher side of the market perceptions and market talk of bonus shares by some of the undervalued companies did not allow investors and punters to keep to the sidelines for a single session.

However, it goes to the credit of the market that its performance is not influenced by the external factors as investors seem to have decided to go alone and in line with the market fundamentals rather than the fear of political uncertainty.

Plus signs dominated the list under the lead of JS & Co and Wyeth Pakistan, up by Rs27.35 and 95,followed by Pakistan Resource Co, Thal Jute, Lakson Tobacco, Pakistan Refinery, National Refinery, Shell Gas, Shell Pakistan, Attock Petroleum, Nestle Pakistan, Sanofi-Aventis, Indus Motors,and Pak-Suzuki Motors, which posted gains ranging from Rs11.05 to 25.05.

JS Global and Siemens Pakistan, off by Rs8 and 26. Others fell modestly under the lead of United Bank, EFU General, HinoPak Motors, Dawood Hercules, and Pakistan Services, off by Rs3.25 to 6.

Trading volume was maintained on the higher side at well over 410 million shares as compared to 448m shares at the last weekend while gainers also maintained strong lead over the losers at 255 to 123, with 29 shares holding on to the last levels. Pak PTA topped the list of actives, up one rupee at Rs6.50 on 33m shares followed by PTCL, higher by Rs1.85 at Rs58.85 on 31m shares, OGDC, higher by Rs2.20 at Rs122 on 22m shares, WorldCall Telecom, steady by 75 paisa at Rs19.10 on 21m shares, Fauji Cement, firm by 90 paisa at Rs20 also on 21m shares, Bank AlFalah, sharply lower by Rs3.25 at Rs61.85 on 20m shares, Nimir Chemicals, up one rupee at Rs5.50 0n 18m shares.

Other actives were led by Lucky Cement, up 30 paisa on 13m shares, Dewan Cement, up one rupee on 11m shares and TRG Pakistan, higher one rupee also on 11m shares.

FORWARD COUNTER: Bank Alfalah came in for active selling, on reports of lower interim profits, fell by Rs3.25 at Rs62.55 on 8m shares followed by Lucky Cement, lower by 78 paisa at Rs.139.40 on 6m shares and OGDC, up Rs2.25 at Rs122.85 on 6m shares.PTCL followed them, higher by Rs1.85 at Rs59.35 on 5m shares and Telecard, up one rupee at Rs14.20 also on 5m shares.

DEFAULTER COS: Heavy activity was witnessed in Nimir Chemicals apparently on market talk of management change and it was quoted higher by one rupee at Rs5.50 on 17.670m shares followed by Japan Power, up by one rupee at Rs7 on 3.623m shares and Zeal Pak Cement, firm by 20 paisa at Rs5.60 on 0.451m shares.

Among the other actives, Norrie Textiles was leading, unchanged at Rs2.65 on 0.304m shares, Mukhtar Textiles, steady by 15 paisa at Rs3.05 on 0.177m shares and Asset Investment Bank, lower 15 paisa at Rs4.70 on 0.125m shares.