KARACHI, June 6: Stocks on Friday finished the pre-budget session on a cautious note as investors played safe despite impressive economic indicators amid fears of an opposition protest over the LFO issue in the national assembly at the time of the budget presentation on Saturday.

The KSE 100-share index rose by 9.36 points settling at 3,141.82, its new career-best level pushing up the market capitalization to Rs697 billion.

A strong demand was evident for shares considered to be the chief beneficiaries of the fiscal incentives, finishing sharply higher, leading among them being Dewan Motors, D.G. Cement, on rumours of an excise duty waiver, Adamjee Insurance on hopes of extension of capital gains extension to this sector and many others in the textile group.

The Economic Survey, a pre-budget official document highlighting the last year’s economic performance of the government, failed to imbue enthusiasm in the investors, who were worried over the tense political situation.

“The 5.1 per cent growth in the GDP .... 20 per cent increase in exports and a modest cut in the fiscal deficit should have buoyed the investors’ confidence but (market leaders), including financial traders, did not seem inclined to take calculated risks at this stage,” analysts said.

Analysts were unanimous in their views about the stock trading future, saying that the market was sure to capture fresh gains after the dust on the political fronts settled down.

“The pre-budget calm in stock trading is very unusual as in normal conditions there is a lot of bargain-hunting and speculative activity on conflicting rumours,” they said, adding: “It may not be a prelude to some bad news but chances are evenly matched.”

What seemed to be the investors’ chief worry was the opposition’s threat of not providing a safe passage for the national budget as a mark of its continuing protest against the LFO.

The bulk of alternate bouts of buying and selling were confined to the blue chips and some second-liners, notably in the auto sector followed by reports of a 12 per cent growth in sales of cement and leading textile shares.

Attention remained focused on the post-budget trading sessions when the impact of fiscal steps, including incentives and taxes would be known and investors would take positions according to their evaluation of the future market outlook, dealers said.

Major gainers were led by Javed Omer, HinoPak Motors, Dawood Cotton, Pakistan Services, Grays of Cambridge, Fazal Textiles and Al-Ghazi Tractors, which posted gains ranging between Rs5.15 and Rs8.75.

Other gainers included EFU General, Millat Tractors, Noon Sugar, Mahmood Textiles, Millat Tractors, Atlas Battery and Gatron Industries, up between Rs2.90 and Rs4.

Losers were led by Bannu Woollen, Shell Pakistan, Central Insurance, Lakson Tobacco, Nestle MilkPak, Security Papers and Colgate Pakistan, posting losses between Rs2.00 and Rs7.30. Unilever Pakistan fell by Rs24.95 on renewed selling.

The trading volume fell to 259m shares from the previous level of 263m shares but gainers maintained a strong lead over the losers at 252 to 133, with 58 shares holding on to their last levels.

The most active list was topped by Bosicor Pakistan, a newly- set up oil refinery, up Rs1.50 at Rs18.80 on 37m shares followed by D.G. Khan Cement, higher by 80 paisa at Rs21.30 on 35m shares, Dewan Motors, up Rs1.20 at Rs23.50 on 20m shares, PTCL, unchanged at Rs26.15 on 15m shares and Adamjee Insurance, higher by Rs1.75 at Rs54.60 on 14m shares.

Other actives were led by Nishat Mills, a rupee higher on 12m shares, Chakwal Cement, firm by 25 paisa on 11m shares, Hub Power unchanged on 10m shares, Lucky Cement, higher 50 paisa on 8m shares and National Bank, up 10 paisa on 7m shares.

FORWARD COUNTER: Hub-Power came in for modest support but ended unchanged at Rs35.25 on 3m shares followed by PTCL, also unchanged at Rs26.20 on 2.655m shares, PSO, steady 10 paisa at Rs213.10 on 2.351m shares, Nishat Mills, higher 85 paisa at Rs27.40 on 2m shares and Sui Northern Gas, unchanged at the Rs32 also on 2m shares.