20000128

RECORDER REPORT

KARACHI: Equities marched upward for the second consecutive session on Thursday as buyers dominated the proceedings. However, some of the players were cautious ahead of the weekly settlement on Friday in view of the absence of financial institutions.

The bulls made their presence felt and the index scored a handsome gain which rehabilitated the confidence of the buyers. However, the market witnessed profit selling activity during the second session owing to negative rumours deliberately infused by some of the big players to force the weak holders to offload their positions.

The market at one time was up by 50 points but the rumours trimmed the values. The rumours which dampened the mood of the investors was that Russia had declared Pakistan a terrorist state and that India had increased deployed more troops on the Sialkot border. Though, both these rumours proved false, they badly affected the price run up at the stock market.

The players were cautious as Friday the settlement day might see some more selling pressure from weak holders and retail investors.

Iftikhar Abbasi of Taurus Securities said that the index rose further as buying in blue chip stocks continued while the market was still slightly overbought. The expectations of favourable IMF package coupled with other improvements in the economy as well as a bumper cotton crop made the bourse buoyant.

He said that the index was likely to remain in the consolidation phase and might remain so for a few more sessions. Further rise depended on the upcoming IMF package, situation on the borders and the signals from the US regarding President Clinton's visit to Pakistan.

The KSE 100 index recorded a rise 23.38 points and closed at 1725.92 from 1702.54 of Wednesday. The volume amounted to 268.775 million shares as against 327.226 million shares of Wednesday. The market capitalisation moved up to Rs 439.847 billion from Rs 433.979 billion of yesterday.

Faisal Abbas of AHR Securities said that the market remained bullish throughout the session and showed firmness till the last hour on fresh buying interest by the bulls as well as the local institutions and investors observed.

Almost all the active issues along with the blue chips stocks were in high demand and bears were indeed in a panic like situation. But a rumour regarding the bombardment on the border by the Indian aircraft, which reached the sings just before the closing crushed the bull run and the index came down sharply.

PTCL on a business of 121.920 million shares moved up to Rs 29.25 from Rs 28.80, Hubco on a trading of 40.304 million shares gained 10 paisa to Rs 26.30, Fauji rose by Rs 2.65 to Rs 64.00 as nearly 23.711 million shares, ICI on a volume of 22.911 million shares closed at Rs 12.60, higher by five paisa and PSO on a turnover of 12.665 million shares closed at Rs 238.55, higher by 55 paisa.