KARACHI, May 19: Stocks on Monday maintained an optimistic outlook as follow-up support figured prominently on selected counters but bears adhered to the sidelines anticipating further increase in prices and to sell at the inflated levels.

The KSE 100-share index, however, finished marginally higher above the crucial level of 3,000 but opinions are divided over its onward march to its widely speculated next target of 3,200 points.

After early rising to 3,027 points boosted by reports that the US may write off the outstanding loan of $1.8 billion before the President Musharraf’s proposed visit next month on Bush’s invitation, mid-session selling allowed it finish with clipped gain of 1.92 points at 3,005.27 amid a thinly traded session.

The notable feature was that most of the MNCs came in for strong support along with the local blue chips under the lead of Colgate Pakistan, which is rising in each session by Rs5 to Rs6 after the reports of its joint venture deal with Tetley of India to market tea here.

Some of the leading shares, whose managements will be given awards possibly by the prime minister for excellent corporate performance during the last year also remained in active demand.

The early run-up was attributed to strong selective buying in some of the pivotals ahead of KSE’s awards giving ceremony to top 25 companies expected to be chaired by the prime minister and the latter selling to lack of follow-up support.

In a striking similarity, both the Mumbai and the Karachi Stock Exchanges are rising in unison to stay above the 3,000 point index level boosted apparently by the current peace moves but which of the two has more supporting financial factors will outwit the other in their onward drive to test new highs, brokers said.

The KSE each year gives corporate excellence awards to top performing listed companies both in terms of higher dividend and per share earnings and owing to political reasons the ceremony is delayed by about six months.

“The index is expected to be sustained above the fragile level of 3,000 to show the prime minister that all is well on the corporate front”, says a leading analyst “what after that is anybody’s guess”.

Opinions are divided about the market’s liquidity-driven meteoric rise as leading among the analysts are not sure whether or not it could be sustained in the coming trading sessions.

“Any speculative liquidity-driven rally motivated by capital gains may not be reliable in market parlance”, says a leading stock broker “there are some other fundamentals sustaining factors, some of which are still lacking”.

Despite the current overtures, peace with India may remain an elusive goal and the perception of a harsh budget early next month could take away some of the current financial stimulants to other sectors of the economy.

“Surplus liquidity is floating like anything, bank rates are at the lowest, badla rates and volumes are manageable, there are not many other alternate investment avenues at the moment”, they said “only fools could miss the opportunity to go for stocks and gold as price flare-up in both tells the whole truth”.

Plus signs again dominated the list under the lead of Wyeth Pakistan, which soared by Rs71 owing to shortage of floating stock to close above the Rs1,000 mark ever hit by a 10-rupee share at Rs1,026. Unilever Pakistan having the face value of Rs50 is other share, which is trading around Rs1,270. Siemens Pakistan rose by Rs24 on identical reasons. Other good gainers were led by IGI Pakistan, Al-Abid Silk, Dawood Cotton, Gatron Industries, Reckitt and Benckiser, and Clover Pakistan, up by Rs4.05 to 6.05.

Losers were led by Treet Corporation, off Rs15.40 followed by Gillette Pakistan, Burewala Textiles and Dawood Hercules, which fell by Rs3.75 to Rs4.90.

Trading volume fell to 145m shares from the previous 185m shares but gainers maintained a fair lead over the losers at 217 to 160, with 57 shares holding on to the last levels.

PTCL topped the list of most active, easy five paisa at Rs25.80 on 28m shares, followed by KESC, up by 70 paisa on reports of its early sell-off of controlling shares, on 16m shares, Hub-Power, up 10 paisa at Rs34.90 also on 16m shares, Dewan Salman Motors, off 55 paisa at Rs18.10 on 7m shares and FFC-Jordan Fertilizer, up by 25 paisa at Rs11.60 also on 7m shares.

Other actives were led by Sui Northern Gas, lower 20 paisa on 7m shares, PSO, off Re1 on 6m shares, Nishat Mills, up by 50 paisa on 4m shares, Dewan Salman, easy 40 paisa also on 4m shares and D.G.Khan Cement, off 55 paisa on 3m shares.

FORWARD COUNTER: Speculative issues on the forward counter showed mixed trend as Hub-Power rose by 10 paisa at Rs34.90 on 5m shares, while PSO fell by Rs1.15 at Rs207.30 on 4m shares.