20000211

RECORDER REPORT

KARACHI: Short covering set in on Thursday as financial institutions and some of the brokerage houses supported the trend and allowed the market to score a paltry rise.

The market opened on a weak note but most of the time was in the plus column. Weak hands and speculative forces offloaded their holdings. The market was dull as not a single entity was willing to support the trading. However, during the second session, some activity from the financial institutions and leading brokerage houses saved the market.

The significant feature of the market was that the top runners either lost weight or moved in a tight band. Improvement in the second tier changed the momentum and traders believed that there was still room for rise. The investors hoped that fundamental changes were going to take place in the second tier stocks as a few were likely to be privatised by end this year while some of the companies would announce financial results next month.

The KSE-100 index registered a rise of 4.04 points to 1786.64 from 1787.60 of Wednesday. The volume amounted to 256.745 million shares as against 323.190 million shares of Wednesday. The market capitalisation moved down to Rs 457.301 billion from Rs 454.665 billion of Wednesday.

A leading analyst said that the start of the day was quite boring because of selling pressure by the local institutions in Hubco, while the rest of the market was following the suit, and the index dipped down constantly.

He added that in the second session, the market witnessed across the board buying in some under par value issues of cement and textile sector. The rise in this sector was mainly because the local institutions took fresh positions, which eventually helped the market not only to recover but also convert into a bullish frame.

The market on Friday is expected to move in a narrow band, if in the morning session the index floats into the minus column. However, there is a possbility that short covering in the second will allow the index to show a modest recovery.

Hubco on a business of 70.347 million shares moved up by 15 paisa to Rs 27.60, PTCL on a trading of 56.804 million shares lost by five paisa to Rs 29.30, FFC Jordan moved to Rs 15.05 from Rs 13.55 as nearly 37.412 million shares changed hands, KESC on a turnover of 13.336 million shares closed at Rs 14.45, higher by Re. 1 and ICI on a volume of 10.153 million shares finished at Rs 13.20, showing an increase of 20 paisa.