KARACHI, Jan 18: The PSO on Thursday remained in strong demand for the third session in a row as buying euphoria linked to its privatisation possibly in March did not allow investors to take even a technical breather.

It ended with a fresh gain of Rs8.85, making the total rise during the last couple of sessions to Rs30 and evoked active sympathetic support on other counters.

The KSE 100-share index finished with an extended gain of 23.60 points at 10,640.71 as compared to 10,617.11 a day earlier as some of the leading base shares including OGDC, MCB and National Bank ended higher.

“The monetary policy for Jan-June 2007 is positive and takes care of all the sectors of the economy including stock trading,” said analyst Faisal A. Rajabli, adding “the core issue of inflation and how to contain it is on the top of new year agenda”.

Earlier, trading resumed on a cautious note as investors played safe ahead of announcement of the monetary policy for the year 2007 by the central bank but PSO remained in the limelight aided by buying euphoria linked to its sell-off.

“There is no possibility of further tightening of the monetary policy as core inflation showed a progressive decline,” analysts at a leading research house predict.

The monetary policy plays a decisive role in stock trading, both institutional traders and foreign funds kept to the sidelines awaiting details of the policy measures.

But some of the leading brokers remained active buyers on those counters which are to benefit by the new policy, some others said.

There were short-term dealers, jobbers and bargain-hunters who remained active buyers and sellers encouraged by the inflow of positive news.

Leading bank shares, which attracted selling a day earlier on some “negative leaks” about the new policy took profits at the current highly inflated levels, analysts said.

Leading gainers were led by Rafhan Bestfoods and Lakson Tobacco ahead of their board meeting, up by Rs27.10 and Rs24.55 respectively followed by Javed Omer, Adamjee Insurance, Mirpurkhas Sugar, Pakistan Tobacco, National Refinery, Attock Petroleum, Clariant Pakistan, Rafhan Maize and Grays of Cambridge, which posted gains ranging from Rs3.40 to 11.25.

Losers were led by Clover Pakistan and Gatron Industries, off Rs6.05 and Rs5.50 followed by Excide Battery, Pakistan Refinery, Sanofi-Aventis and Fazal Textiles, declined by Rs2.50 to Rs4.10.

Trading volume fell to 169m shares from the previous 224m shares but gainers held a strong lead over the losers at 147 to 125, with 39 shares holding on to the last levels.

KESC topped the list of actives, up by 55 paisa at Rs7.90 on 21m shares followed by OGDC, firm by 10 paisa at Rs117.65 on 13m shares, Pakistan Petroleum, off Rs1.90 at Rs245.60 on 11m shares, WorldCall Telecom, steady 10 paisa at Rs10.35 on 11m shares and National Bank, lower 85 paisa at Rs257.05.

They were followed by MCB, higher by 30 paisa on 10m shares, PSO, sharply higher by Rs8.85 at Rs330.85, PTCL, lower 55 paisa on 7m shares, Telecard, up by 35 paisa on 6m shares and D.G. Khan Cement, higher by 65 paisa also on 6m shares.

FORWARD COUNTER: National Bank came in for active selling on this counter and fell by 65 paisa at Rs258 on 8m shares, followed by MCB, up by 30 paisa at Rs269.50 on 6m shares and the newly listed Pace Pakistan, higher by 65 paisa at Rs23 on 5m shares.