KARACHI, Jan 17: Stocks on Thursday showed bullish trend as investors covered positions at the lower levels aided by the perception of thinning of war clouds and the consequent peace after Colin Powell’s visit.

It could be a long process of “give and take” amid extensive talks on the issues between Pakistan and India but one thing now is clear that the war may not be imminent as it has been a couple of days back, brokers said.

The KSE 100-share index finished close to the next support level of 1,450 at 1,449.47 and may be heading for the next barrier of 1,500 if the current tempo of political moves to defuse the border tension is maintained. The net rise was 1.50 per cent or 21.37 points over the day.

As the fears of war are receding each day followed by some positive developments on the political front investors are getting out of their shells to ride the bandwagon.

“Colin Powell’s comments on the prevailing border situation at the Islamabad press conference has raised hopes that he may defuse the border tension under a specific agenda aiming at eliminating threat of war,” stock analysts, commenting on the developing situation, said.

“There could be still many slips between the glass and the lip but one thing appears certain that war between Pakistan and India now may not be inevitable as it was some days back,” most of the leading brokers feel.

It was perhaps in this background that everyone is turning into an active buyer amid predictions that the market is heading for a major breakthrough on the strength of perceptions of peace in the region, they added.

The fact that the rally was terribly broad-based as over 200 shares came in for active bouts of buying and selling signals that the bulls have already taken the control of the market.

“Spillover of demand from the high-profile issues to the second-liners or undervalued shares reflects that leading investors are building up hedging facilities to avert undue losses in case of negative developments,” some dealers speculate.

For the second session in a row, the rally was broad-based and plus signs dominated the list under the lead of Engro Chemical, which shot up by Rs.4.15 on strong speculative support amid rumours of bonus shares.

Cement shares came in for renewed support on expectations of orders from Afghanistan after the reconstruction works starts there. Lucky Cement, D.G. Khan Cement and Dadex Eternit were leading among the gainers.

Other prominent gainers were led by Shell Pakistan, Ferozsons Lab, Bata Pakistan, Cherat Cement, Dadex, Pakistan Oilfields, ICI Pakistan, Treet Corporations, Rupali Polyester and Millat Tractors, which rose by Rs.1.40 to 3.

Losses on the other hand were fractional barring Wyeth Pakistan, which fell by another Rs.10 followed by Trust Brokerage, Leather-Up, and some others falling by Rs.1.05 to 1.75.

Trading volume fell further as leading investors were not inclined to sell in a rising market totalling 106m shares from the previous 146m shares but gainers held a strong lead over the losers at 134 to 41, out of 218 actives.

Hub-Power was again actively traded, up 15 paisa at Rs.20.75 on 32m, PTCL, higher 25 paisa at Rs.16.20 on 27m shares, Engro Chemical, sharply higher by Rs.4.15 on market talk of bonus shares, Sui Northern, firm by 20 paisa at Rs.10.40 on 5m shares and Lucky Cement, higher 40 paisa at Rs.9 on 4m shares.

Other actives were led by D.G. Khan Cement, higher 80 paisa on 3.564m shares, PSO, up one rupee on 3.439m shares, Maple Leaf Cement, higher one rupee on 2.178m shares, FFC-Jordan Fertilizer, firm by 15 paisa on 2.145m shares and Fauji Fertilizer, higher 85 paisa on 2.125m shares.

NATIONAL BANK: Its share maintained the upward drive on strong renewed buying and finished with a fresh gain of 35 paisa at Rs.14.95 after, at one stage, hitting the day’s best bid of Rs.15.50. The net rise over the day was 34 paisa on a large volume of 7.2m shares.

FUTURE CONTRACTS: Speculative issues also followed the lead of their counterpart in the ready section and generally rose, major gainers among them being PSO, ICI Pakistan and Engro Chemical, up by Rs.1.05, 1.55 and 3.90 at Rs.100.80, 39.70 and 60.50 respectively.

PTCL proved to be the most active scrip, up 24 paisa at Rs.16.39 on 1.960m shares followed by Hub-Power, firm by 15 paisa at Rs.20.75 on 1.404m shares.

DEFAULTER COMPANIES: Allied Motors came in for active trading and rose by five paisa at Rs.3.30 on 12,500 shares followed by National Modaraba, unchanged at Rs.0.65 on 2,000 shares and Automotive Battery, steady by five paisa at Rs.4 on 500 shares.

DIVIDEND: First Capital Securities, cash at the rate of 10 per cent for the year ended June 30, 2001, Nimir Industrial Chemicals, nil.