20000121

Share prices

take off in

kerb trading

HARIS ZAMIR

KARACHI: Share prices improved appreciably in kerb trading after the rumours of PIA plane hijacking proved false.

Seasoned traders said that the market was in a bullish momentum during the normal session, but several punters in all the three stock exchanges of the country deliberately spread the rumour that a PIA plane had been hijacked, perturbing investors everywhere.

They said that in panic, investors unloaded their holdings and the rumour mougers lifted these stocks. After the closure of the market, however, the prices were once again on the upward march.

Mobile phones began ringing across the city, and once again, the traders and dealers executed deals in the choice scrips. The prices of pivotals rose sharply against the official closing of the market at 4.15 p.m. PTCL closed at Rs 28.05 while the price range in the kerb market was between Rs 28.75 to Rs 29.50, Hubco's rate was Rs 27.25 to Rs 27.65, while PSO was hovering around Rs 234 to Rs 235.50 from their official close of Rs 26.75 and Rs 232 respectively.

A leading trader said that the market would incorporate these gains on Friday and the index is likely to show an increase of around 35 to 45 points.

Anthony Mendes of AMZ Securities said that the bulls were perturbed at the rumour of PIA plane hijacking, but after the confirmation that is was false, they started trading in the kerb openly and the rates went up.

He said that PTCL was trading at Rs 29.50, Hubco Rs 27.50 and PSO at Rs 235.

An analyst said that several forces wanted to derail the government's effort to revive the economy which has helped the KSE-100 index attain a two-year high. Since the military take-over on October 12, 1999, the index has risen around 500 points and relaxation of capital controls is expected to help restore the confidence of foreign investors' particularly repatriation of pending sale proceeds and dividend payments.

"The marketmen are of the view that a smart recovery might emerge in the forthcoming session", he said.