October 1, 2007	Monday	Ramazan 18, 1428

THE share market maintained its forward thrust for the third week in a row as investors seem to have followed the positive market fundamentals rather than being overwhelmed by the judicious blend of both negative and positive news both on the political and legal fronts.

Another gain of 287 points in the index at well over 13,000 points and a massive increase of Rs293 billion in the market capital at Rs4, 101 billion points to investors’ mood and their future perceptions about the share business.

But a section of analysts believe that the Supreme Court’s positive ruling on the dual office of the president and his eligibility for reelection could give a fresh boost to stock trading when it resumes trade on Monday on the perception of continuity in the existing financial and economic policies if Pervez Musharraf is reelected by the current assemblies.

The KSE 100-share index consolidated well above the barrier of 13,000 points as investors continued to build up long positions on selected counters apparently not deterred by negative ruling on some of the important legal and political issues by the apex court.

The defiant mood of the opposition on important constitutional issues including president’s dual office and his eligibility for the second presidential term, could lead to a law and order situation, some others fear.

However, the negative fallout of opposition’s en block resignations from assemblies on the stock market would be known after they were tendered, they said.

Over the week’s dividend and bonus shares announced by most of the companies were on the higher side of investors’ expectations but, the direction of the market was to be set by news from legal and political fronts, they said.

“The strength of the corporate sector based on higher cash payouts and bonus shares did not allow the market to fall prey to political manoeuvring”, a leading analyst Faisal A, Rajabali said adding “each fall caused by the negative political undercurrent was followed by a big rally reflecting the investors’ confidence in the future market outlook”.

Trading on the share market resumed on a bullish note as leading banks, cement and other blue chips came in for strong support aided partly by the perception of continuity in the existing financial policies and partly to relative calm on the law and order front.

The KSE 100-share index posted a fresh rise of 286.62 points at 13,351.79 as compared to 13,065.17 at the last weekend, signaling that its drive to next chart point of 14,000 has begun. Leading base shares, including National bank, Engro Chemical, Lucky Cement, and PTCL were among the largest contributors to the rise.
The free-float 30-share index, on the other hand, also rose by 475.96 points at 16,183.09 as against 15,707.13 of last weekend.

The share of Habib Bank came on the ready board of the Karachi bourse at around Rs305 but failed to maintain its previous trading tempo and fell by Rs25 at Rs280 on selling but still well above their face value.

Soon after its public offering some two months back, its share was provisionally listed on the forward counter and was initially quoted around Rs340 on the higher side against the face value of Rs10 and a premium of Rs225 per share. However, trading was suspended because of some technical reasons.

The KSE sources said clearing of the outstanding deals prior to suspension of trading was settled on Sept 26, providing it a fresh start on the ready counter.

The broader market was, however, a bit hesitant as investors were in two minds about the future share business outlook in the backdrop of some crucial events, mainly the Supreme Court’s verdict late on Friday afternoon after the closure of the bourse on the president’s dual office and filing of nomination papers by presidential candidates, analysts said.

Another important event during the week was the unanimous decision of resignations by the opposition members of the assemblies against President Musharraf’s filing of nomination papers for his re-election, they said.

“There is also loud whispering about the opposition’s protest plans but the crackdown on its leaders and their arrests signal that the plan g may not be successful”, they added.

FORWARD COUNTER: All leading shares also saw the finishing of the week with extended gains on active follow-up support both speculative and genuine. PTCL, OGDC, Pakistan Petroleum, MCB, National Bank, Pakistan Oilfields, Engro Chemical, Bank Alfalah, Lucky Cement and Fauji Fertiliser Bin Qasim were leading among the gainers.—Muhammad Aslam