KARACHI, Dec 21: Stocks on Wednesday resumed trading on a firm note aided by reports of completion of PTCL deal with Etisalat, but failed to sustain the early buying euphoria on late session selling. The KSE 100-share index rose by another 22.06 points at 9,504.07.

Selective support, however, figured prominently on a number of counters, which enabled the market to finish with an extended gain in an actively traded session.

However, the reports of final settlement of PTCL sell-off deal with Etisalat after prolonged talks at the original price of $2.598 billion was welcomed by the market but early euphoria could not be sustained till the close.

The breakthrough apparently achieved after reported intervention at the highest levels and the completion of the transaction was announced by both the parties. The settlement was announced after Tuesday’s Dubai meeting between the Pakistani and Etisalat officials.

After earlier rising by 100 points at 9,582.47, the KSE 100-share index reacted from the session’s highs to finish only with a rise of 22.06 points at 9,504.07 on late selling in PTCL and National Bank.

Analysts attributed the late sell-off in PTCL and other pivotals owing to lack of details of the final settlement, which will be announced early next month. Fears that a period of five years is too long to make final payments against the total sale proceeds and anything could happen in the intervening period, they said.

“Investors are, however, warned not to go by the reported breakthrough and play safe”, says a leading stock analyst, adding “they could opt for other issues currently under the process of privatization including PSO, Pakistan Petroleum and OGDC pending the details of the final PTCL settlement to satisfy their buying craze”.

But some others said the late sell-off in PTCL could be tactical as some of the leading brokers may have sold in a haste to push its price down and then to buy at the lower levels for capital gains after the details of the deal were announced.

PTCL soon after the opening rose to day’s peak level of Rs67.70 in response to press reports but progressively fell to close slightly above the day’s lowest as investors resorted to profit-selling.

However, this is not to say that the market would not respond to some other positive news from the corporate sector and there is no reason to believe that the year-end covering operations may not add to its relative strength before the year is out.

Barring National Bank, which came in for active profit-selling at the higher levels, other bank shares maintained their upward drive and rose under the lead of MCB, Bank of Punjab and some others.

Profit-selling in National Bank was attributed to analyst predictions that the 100 per cent bonus shares announced by the Bank Al-Jazira of Saudi Arabia in which it has a big stake may not have a major positive financial impact on its share price.

Leading gainers were led by Unilever Pakistan and Wyeth Pakistan, which recovered the overnight losses and were quoted higher by Rs40 and Rs90, followed by Adamjee Insurance, Nishat Mills, Sapphire Fibre, Singer Pakistan, Engro Chemical, Gillette Pakistan, Colgate Pakistan and Sanofi-Aventis, which posted gains ranging from Rs4.50 to Rs11.75.

Siemens Pakistan and National Refinery fell by Rs8.95 and Rs10.50. Other prominent losers included PICIC, PSO, Pakistan Oilfields, New Jubilee Insurance, Pakistan Engineering, Siemens Pakistan and National Refinery, off Rs3.10 to Rs10.50.

Trading volume further rose to 401m shares from the previous 372m shares as gainers maintained a strong lead over the losers at 217 to 147, with 52 shares holding on to the last levels.

PTCL topped the list of actives, up by 20 paisa at Rs66.70 on 52m shares, followed by National Bank, off Rs2.50 at Rs199 on 29m shares, MCB, higher by Rs1.60 at Rs170.10 on 27m shares, PIAC, firm by 50 paisa at Rs12.95 on 25m shares, Nishat Mills, higher by Rs4.65 at Rs114.10 on 25m shares, OGDC, steady by 35 paisa at Rs115.55 on 17m shares and Bank of Punjab, up by 95 paisa at Rs102.85 on 16m shares.

Other actives included Telecard, up by Re1 on 16m shares, Fauji Fertilizer Bin Qasim, higher by 70 paisa on 15m shares and Japan Power, up by 35 paisa also on 15m shares.

FORWARD COUNTER: Nishat Mills came in for strong support and was quoted higher by Rs4.80 at Rs114.85 on 13m shares followed by National Bank, lower by Rs2.40 at Rs199.70 on also on 13m shares and MCB, up by Rs1.95 at Rs171 on 12m shares.