KARACHI, Oct 15: Stocks on Tuesday maintained an optimistic outlook as investors were back in the arena followed by official confirmation that the sell-off of PSO is well on the cards and bidding schedule will be maintained. The KSE index posted a fresh gain of 23.32 points at 2,063.17.

The investors, who had become a bit hesitant in the backdrop of press reports of delay in the initial sell-off plan and sold extensively a day earlier, covered positions at the overnight lows. Other blue chips in the energy sector, notably Shell Pakistan also came in for strong support.

“The sharp fall and rise in the share value of PSO in response to its sell-off or otherwise reflects what it could well mean to investors as well as the entire market after the process is initiated,” says a leading broker.

The immediate reason behind the market’s sustained post-election recovery was, therefore, said to be official denial of reports about the delay in the disinvestment of the state stake in Pakistan State Oil (PSO).

The KSE 100-share index rose further to close higher by 23.32 points at 2,063.17 as compared to 2,039.85 a day earlier, reflecting the strength of leading base shares.

The index is edging to attain its pre-election level of 2,100 point and it could further extend its upward drive, some analysts predict.

“But much will depend on the formation of government at the centre and its constituents and their relative strength in the house,” they added. “The current signals from the political parleys among the contenders are not that encouraging.”

Post-election uncertainties regarding formation of political government are there but institutional traders were not inclined to miss the attractively lower levels most of the pivotals has reached in the last two sessions.

Energy, fertilizer, petroleum and banking sectors remained in active demand followed by reports of higher earnings and market talk of enhanced dividend.

PSO, Shell Pakistan, Fauji Fertilizer, Engro Chemical and Hub-Power were among the leading gainers, and evoked strong speculative support on the other blue chip counters. PSO was traded spot.

Plus signs dominated the list under the lead of Fazal Textiles, Wyeth Pakistan, Siemens Pakistan, Shell Pakistan and Pakistan Reinsurance Company, which posted gains ranging from Rs.5.25 to 56.40, with leading MNCs including Siemens Pakistan and Shell Pakistan being on the top, up by Rs.18.25 and 22.25 respectively.

Other prominent gainers were led by IGI Insurance, Pakistan Refinery, PSO, Bolan Casting, Millat Tractors, BOC Pakistan, Cherat Papers, Packages and Ghani Glass, up by Rs.2.15 to 4.50 amid active trading. PSO, which was traded spot accounted for 0.961m shares.

Losers were led by 9th ICP Mutual Fund, Cherat Cement, Sitara Chemical, Shafiq Textiles, Glaxo-Wellcome, and Treet Corporation, off by Rs.1.50 to 4.75.

Trading volume rose to 140m shares from the previous 123m shares as advancing issues forced a strong lead over the losing ones at 184 to 73, with 68 shares holding on to the last levels.

Hub-Power again led the list of actives, up 35 paisa at Rs.24.20 on 37m shares followed by Engro Chemical, higher by Rs.1.45 at 66.45 on 14m shares, National Bank, up 95 paisa at Rs.22.85 on 11m shares, MCB, higher 55 paisa at Rs.28.30 also on 11m shares and Fauji Fertilizer, off 85 paisa at Rs.57.70 on 9m shares. Other actives were led by FFC-Jordan, up 50 paisa on 8.372m shares, ICI Pakistan, higher one rupee on 7.962m shares, PTCL, steady five paisa on 6.869m shares, Adamjee Insurance, higher 90 paisa on 4.639m shares and D.G. Khan Cement, up 55 paisa on 3.647m shares.

FORWARD COUNTER: PSO came in for massive short-covering after the denial of reports about its privatization and rose by Rs.1.90 at Rs. 155.15 on a massive turnover of 12.533m shares.