KARACHI, Nov 3: Stocks resumed trading on an optimistic note on Monday amid hopes that the Rs20 billion market support fund may be active during the next couple of sessions preceding the removal of floor from under the KSE 100-share index.

A section of investors may still be skeptical about the advent of fund buying, but the improvement both in tone and turnover of the market reflected that the message has already reached the relevant quarters, said a leading analyst Ahsan Mehanti.

He said the current week could well prove crucial for the future market trend as investors were expecting some important decisions leading to the market’s recovery after long terrible sluggishness.

Analyst Hasnain Asghar Ali said the market could suffer fresh pruning of 15 to 20 per cent in line with the off-the-floor transactions after the removal of floor followed by a sustained run-up backed by positive developments on the foreign aid front and one per cent cut in banks’ cash reserves requirements.

For the first time after about three weeks’ status quo, the KSE 100-share index showed signs of activity and ended slightly below the session’s high of 9,184.70 at 9,183.14, up 0.26 points as some of the leading base shares ended sharply higher under the lead of Siemens Pakistan.

Trading volume also rose to 0.467m shares from the weekend’s 0.224m shares after having hit all-time low of 0.111m shares last week because of conflicting reports about the removal of floor and operations of the newly-constituted market support fund.

Analyst Tabish H. Rajabali said that oil imports from Saudi Arabia on deferred payments was also considered a positive development on the economic front, which will ease pressure on foreign debt payments.

But he said investors were keenly awaiting result of the US presidential elections and the policy statement from the next president particularly about the war against terrorism.

Final cash dividend at the rate of 600 per cent by Siemens Pakistan, which rose together with an interim of 300 per cent to 900 per cent was well received in the market as was reflected by a sharp rise of Rs8.57 in its share value at Rs1,218.57.

An interim cash dividend of 40 per cent by Eye Television Network was also on the higher side of the market expectations and was well-received.

Unlike the previous lean sessions, plus signs dominated the list under the lead of Pak Datacom, which rose by Rs2.21 at Rs46.41 on 31,400 shares.

Other prominent gainers included Mirza Sugar, Network Leasing, Paramount Modaraba and Habib-ADM, which posted gains ranging from 20 to 34 paisa.

Barring Gharibwal Cement, which was marked down by 35 paisa at Rs17.64, all others were firmly held at the previous levels amid stray business.

Trading volume rose to 0.457m shares from the weekend’s 0.224m shares as investors covered positions on select counters ahead of the removal of the floor, as gainers topped losers by 12 to one, with 24 shares holding on to the last levels.

PACE Pakistan led the list of actives, static at Rs19.24 on 0.150m shares followed by Standard Chartered Modaraba, unchanged at R8.60 on 0.109m shares, Southern Electric, static at Rs3.60 on 68,000 shares, Gharibwal Cement, lower by 35 paisa at Rs17.64 on 19,500 shares, PTCL, static at Rs31.50 on 16,100 shares and Habib ADM, higher by 34 paisa at Rs9.33 on 13,500 shares.

DEFAULTER COMPANIES: National Asset Leasing and Mukhtar Textiles came in for stray buying and ended higher by four and seven paisa at Rs0.44 and Rs0.60 on 5,000 and 6,000 shares respectively.

S.S. Oils, Gauhar Engineering and Indus Polyester followed them, unchanged at Rs6.50, Rs1 and Rs0.74 respectively.