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RECORDER REPORT

KARACHI: All the gains of 65 points made during the day were washed away in the last 30 minutes on Thursday as rumours engulfed the share market that a PIA plane had been hijacked, which sent shivers in the spine of the investors and in panic they unloaded their holdings.

The volume saw a new record set at the share market on Thursday rising to 469.470 million shares surpassing the previous mark of 462.560 million shares attained on January 17, 2000. Another record was the highest number of trades in a single day at 53,685. The previous record was 51,609 trades on Jan. 17, 2000.

During the session the market recorded a maximum rise of 65 points but selling pressure from the weak holders and local investors trimmed the KSE-100 index which closed at 1719.02 from 1718.37 of Wednesday. The market capitalisation finished at Rs 438.595 billion from Rs 437.687 billion of Wednesday.

Anthony Mendes of AMZ Securities said that the market climbing up for most of the day's trading, the index jumped up by 65 points and the volume hit new records at 469 million shares. The buying remained aggressive throughout the day and across the board. Blue chip items as well as second rate stocks were high in demand but the rumour of the hijacking of PIA plane destryed the bullish sentiment and created a scene of confusion and chaos in which the index nose-dived to remain pegged at 1719.02.

Faisal Abbas of AHR Securities said that a highly volatile day was witnessed at the stock market where the sentiment was bullish from the beginning and was up by 65 points. But the rumour regarding the hijacking of a PIA plane hurt the sentiment badly and the index went down sharply.

He said that buying spree by the bulls and also by the local institutions was going on from the beginning and almost all active issues along with the blue chips recorded handsome gains, before the panic on the hijacking rumour.

"The index is likely to score more gains as several positive news are expected soon", a leading trader said. He pointed out that the Asian Development Bank team had arrived in Islamabad and the government was expected to get $500 million to $600 million assistance from the bank this year.

The release of the funds would show that once again the foreign donor agencies have regained faith in Pakistan and the current steps taken by the government to put the economy back on track. Furthermore it would help restore the confidence of foreign investors.

Hubco on a trading of 145.673 million shares improved by Re. 1 to Rs 26.75, PTCL on a business of 139.875 million shares moved to Rs 28.05 from Rs 29.35, ICI on a volume of 37.711 million shares unchanged at Rs 12.55, Sui Northern Gas on a turnover of 36.531 million shares closed at Rs 20.25, higher by 75 paisa and Fauji gained 30 paisa to Rs 62.00 as 15.143 million shares changed hands.