October 18, 2007	Thursday	Shawwal 5, 1428

KARACHI, Oct 17: Trading on the stock market on Wednesday resumed on a bullish note as post-Eid session witnessed a flurry of fresh buying orders on the perception that political uncertainty may end after the arrival of Benazir Bhutto on Thursday, analysts said.

But some others fear violence and law order and situation as a massive planned welcome could work on both side of the political divide.

The KSE 100-share index, however, consolidated well above the level of 14,500 points, signalling that it can take a technical breather after having hit its next chart point of 15,000. It gained another 126.39 points at 14,590.17 on a massive volume of well over 400m shares.

“I don’t call it the market’s spontaneous welcome to expected arrival of the former prime minister after eight years’ self-exile on Thursday,” said a leading analyst, but some others linked it to prevailing enthusiasm reflected by the banners and hoardings on the city roads”.

“The index level of 15,000 or beyond now appears to be not that elusive goal,” Ahsan Mehanti said, adding the base shares notably OGDC and MCB are under squeeze and for good reasons too”.

Incidentally, its journey beyond this level coincided with the resumption of hearing of petitions by the Supreme Court on eligibility of President Musharraf to seek re-election for the second term from the existing assemblies.

However, the market’s future trend is expected to be guided by the apex court’s verdict on the petitions, which analysts believe could go either-way being an important constitutional issue.

Massive foreign buying in OGDC and Pakistan Petroleum for the last couple of sessions is essentially based on the higher oil and gas production and in MCB the support linked to GDR.

It finished the post-Eid session on a bullish note, up by 126.39 points at 14,590.17 as compared to 14,463.78 at the last weekend, although well below the session’s high of 14,614.34 on late profit-selling.The opening was on the higher side as investors were not inclined to take a bearish view of the market, notably in the backdrop of euphoria created by the expected arrival of Benazir Bhutto on Thursday.

“The perception that her arrival could end the prevailing political uncertainty seem to be the chief motivating factor behind the massive buying on selected counters,” analyst Ashraf Zakaria said, adding “foreign buyers were more active”.

Bulk of the support was confined to mostly risk-free shares, notably oil and those having good dividend record as investors were not inclined to go beyond safe havens for good reasons too.

Siemens Pakistan and Unilever Pakistan were leading among the gainers, up by Rs29 and Rs90 followed by Thal Jute, JS & Co, Fazal Textiles, Mirpurkhas Sugar, National Refinery, PSO, Shell Pakistan, Mari Gas, Pakistan Oilfields, Pakistan Petroleum, Attock Petroleum, BOC Pakistan, Colgate Pakistan, ICI Pakistan, Sitara Chemicals, Cherat Papersack, Packages and Murree Brewery, which posted gains ranging from Rs8.10 to Rs17.40.

Losers were led by Pakistan Reinsurance CO and Pakistan Engineering, off by Rs13.70 and Rs12.25 and Habib Bank, United Bank, National Bank, Premier Sugar and JWD Sugar, off by Rs4 to Rs8.05.

Trading volume soared to a year’s high at 439m shares as compared to 302m shares at the last weekend as gainers held a strong lead over the losers at 207 to 128, with 44 shares holding on to the last levels.

OGDC again topped the list of actives, sharply higher by Rs3 at Rs132.80 on 67m shares followed by TRG Pakistan, firm by 50 paisa at Rs15.80 on 47m shares, Fauji Fertiliser Bin Qasim, up by 60 paisa at Rs47.55 on 36m shares, Arif Habib Securities, higher by Rs3.95 at Rs165.25 on 26m shares, Bank of Punjab, steady by 35 paisa at Rs105.15 on 22m shares, D.G. Khan Cement, higher by Rs2.75 at Rs114.25 on 19m shares, and National Bank, off Rs4.70 at Rs266.55 on 13m shares.

Other actives were led by NIB Bank, steady by 60 paisa on 14m shares, Zeal Pak Cement, up by 65 paisa also on 14m shares and Lucky Cement, unchanged on 13m shares.

FORWARD COUNTER: Pakistan Petroleum led the list of actives on the cleared list, sharply higher by Rs12.85 at Rs269.85 on 17m shares followed by OGDC, higher by Rs3.45 at Rs133.20 on 13m shares and D.G. Khan, up by Rs1.90 at Rs114.35 on 10m shares.

Bank of Punjab followed them, steady by 40 paisa at Rs105.40 on 8m shares and MCB, higher by Rs1.50 at Rs376 on 7m shares.

DEFAULTER COMPANIES: Nimir Chemical came in for strong support and rose by 10 paisa at Rs4.35 on 3.249m shares followed by Japan Power, unchanged at Rs9 on 1.217m shares and Norrie Textiles, lower by 10 paisa at Rs2.25 on 0.141m shares.

DIVIDEND: National Bank Modaraba, cash 12 per cent, Nina Industries, 2.5 per cent, Pak Modaraba, 3 per cent, Chenab Fibre, 9.25 per cent and Fauji Cement, right shares 87 per cent.