The stocks last week finished higher after having passed through some apprehensive moments ahead of the US presidential elections and the divided opinions on its outcome, and what impact the results would have on the Pakistani economy and politics.

But there was no immediate bullish reaction to the Bush victory as was widely speculated earlier as investors mostly played safe having an overview of the post-election scenario and did not indulge in speculative trading on any counter.

That was one of the most logical courses and in a way saved the market from either-way speculation during the post-election sessions and also saved small investors from the undue losses.

On-balance stocks managed to finish modestly higher after having passed through highly erratic price movements ahead of the US presidential elections. But as was widely expected there was no buying euphoria associated with the Bush re-election.

The KSE 100-share index managed to finish with a modest rise of 20.06 points at 5,352.30 as compared to 5,332.24 a week earlier as some leading base shares managed to finish higher amid late buying.

"Bush factor as a positive stimulant was still there though it failed to immediately stimulate the investors", analysts said adding some "technical factors including extension in badla clearing by about a week triggered selling from the weekholders".

Some local positive factors including 12 per cent increase in local sales and 55 per cent in foreign sales by the cement sector, higher earning reports from the banking, textiles, energy and chemical sectors also aided the underlying sentiment in more than one way, they said.

Some leading analysts predict the KSE 100-share index could rise another 300 points after the post-Eid holiday trading sessions when the positive side of the Bush victory will manifest itself in a bigger way.

During the pre-poll dealings, the underlying sentiment remained highly volatile amid conflicting reports about the winner and its impact on world bourses.

A formidable section of leading investors took positions on selected counters amid hops of Bush victory, while others feared that Kerry win could well lead to some changes in the US Pakistan policies. Victory of President Bush in the US further boosted the mid-week stock trading as both punters and leading institutional traders indulged in fresh speculative buying on selected counters, signalling a sustained run-up in coming sessions. But this tempo could not be sustained later.

Performance of the market earlier was, however, highly erratic as it danced to the tune of the US election results. At one stage the KSE 100-share index was up by 85 points followed by reports of big lead being maintained by Bush over his rival. But when his lead was reduced to a few votes by Kerry, it fell from early highs.

The snap decline from the early high in case Kerry wins, was attributed to a change in the current policies by him towards Pakistan but Bush victory will mean continuity, brokers said.

"Americans has again voted Bush to power", analysts said adding: "Owing to his long association with the Pakistani elite during his first four-year term he has established himself as a trusted friend".

"Investors have more than one reason to welcome his possible victory", some others said, "it also means continuity in local financial and economic policies as the sitting government is expected to go with him".

The American dollars may not flood the local bourse as investors there may have other options, trade and industry was expected to benefit owing to increased access into the US textile and other markets, they said.

All leading shares, notably those which have been under pressure during the last couple of sessions, notably cement, bank, and energy showed fresh smart gains on active short-covering.

The Nestle MilkPak and Javed Omer were among the leading gainers, up Rs30 and 15 followed by the Artistic Denim, Atlas Honda, Lakson Tobacco and Shezan International. But the largest single-session gain was recorded in the Siemens Pakistan and the Nestle Pakistan.

Other good gainers included Arif Habib Securities, Attock Refinery, Al-Ghazi Tractors, Millat Tractors, Unilever Pakistan, Zulfiqar Industries, and Mari Gas.

Losers were led by the Security Papers, Pakistan Engineering, Abbott Lab, Colgate Pakistan, Berger Paints, National Refinery and Ferozsons Lab. But the largest fall of Rs55.50 was noted in Wyeth Pakistan followed by the Colgate Pakistan, Grays of Cambridge and some others.

FORWARD COUNTER: Barring the PTCL, which remained under pressure all other leading shares on this counter posted modest to good gains under the lead of the PSO and the D.G. Khan Cement, followed by the OGDC, the PPL, Engro Chemicals, Fauji Fertiliser, Fauji Fertiliser Bin Qasim and some others amid active two-way trading.