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RECORDER REPORT

KARACHI: Equities maintained the rising tempo on Tuesday at a Karachi Stock Exchange (KSE) and broke through the 2000 barrier amid hectic activity in synthetic and bank sectors scrips, improving the daily volume by 70 million shares.

The KSE-100 index went up by 26.62 points or 1.35 percent to 2002.33 from 1975.71 of Monday. The volume amounted to 296.79 million shares as against 224.65 million shares of Monday. The market capitalisation improved to Rs 506.579 billion from Rs 499.828 billion.

The market showed tremendous improvement on the back of fresh buying in the synthetic and banking sectors. Analysts believed that synthetic sector would outperform offers in the coming sessions as its margins would improve in this quarter. They added that MCB posted a handsome rise as the government intended to sell its remaining shares to investors. Furthermore, the company was expected to announce its financial results next month and players were anticipating good profit and dividend.

Mohammad Zubair Ellahi of KAB Securities said that the speculatives were on the rise whereas investments were shrinking, increasing the market's vulnerability.

He added that the wild movements, with speculative optimism still running high, suggested a strong market ahead but it was advisable to realise gains on abnormal rises. The broader term market outlook was still positive but rallying around current levels needed caution.

Salman Ahmad of Finex Securities said that the market was up mainly because of technical factors. Speculators and market punters picked up choice scrips on available rates which jacked up the prices of most of the issues.

The trend appeared to be positive but much would depend on the talks between the government and the IMF and the outcome of Hubco's case in the Supreme Court.

Faisal Abbas of AHR Securities said that extended support by the bulls, who already had heavy positions in selected stocks in general and in Adamjee Insurance particularly, boosted the overall trading sentiment, individuals joined the band and the bears were afraid to take any short position.

''It was encouraging to note that the market is getting more and more diversified to other items as well, which would give it sustainable health,'' he added.

PTCL on a trading of 77.049 million shares moved to Rs 32.15 from Rs 31.60, Ibrahim Fibers on a trading of 27.275 million shares closed at Rs 20.35, i.e. higher by 20 paisa, ICI rose by 15 paisa to Rs 17.45 as nearly 24.906 million shares changed hands, Dhan Fibers fell by 10 paisa to Rs 17.70 on a turnover of 21.132 million shares, and PSO on a volume of 13.757 million shares recorded an increase of Rs 2.90 to Rs 238.40.