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Stocks maintain

upswing

RECORDER REPORT

KARACHI: The KSE-100 achieved another milestone as it reached the highest level for the past one year on Tuesday, the second session of the new century, when bulls strengthened them grip on the market as the United States of America dismissed the demand of Indian government to declare Pakistan a terrorist state.

The KSE-100 index on Tuesday touched the high mark of 1479 points surpassing the past year's high of 1441 attained on 18th December 1999. Several traders said that some of the foreign investors entered the rings and lifted choice scrips. But a larger chunk was accumulated by the leading brokerage houses and local financial institutions, with hectic buying in PTCL, PSO and Sui Northern shares.

The statement of the US State Department official dismissed the Indian demand to declare Pakistan as terrorist state and advised them to hold bilateral talks, this boosted the confidence of the investors. Traders said that it was now clear that India had engineered last month's hijacking drama and tried to malign Pakistan in the international community.

The KSE-100 index registered an increase of 22.63 points or 1.55 percent to 1479.71 from 1457.08 of Monday. The volume moved up to 174.205 million shares from 134.346 million shares of Thursday. The market capitalisation finished at Rs 382.213 billion from Rs 377.045 billion of Monday.

Anthony Mendes of AMZ Securities said that the volume and trading pattern signified the positive trend prevailing over the past week continued due to confidence among the institutional and individual investors.

He said that low interest rates on savings and surplus liquidity available to institutions had made the market more lucrative. The expeditious privatisation process and settlement of IPPs issue would attract the foreign investors also towards a low price earning market.

Faisal Abbas of AHR Securities said that the overall market sentiment remained bullish throughout the session despite the fact that Tuesday was the settlement day and on Wednesday would be a holiday. Although the index went down in mid-session on account of selling pressure, it once again started to move up, which ultimately resulted in a panic situation among the bears.

He added that after the peaceful ending of the hijacking affair, the position of Pakistan had improved internationally, which eventually resulted in attracting optimistic buying interest. Moreover, marketmen were also expecting relaxation in the foreign currency rules and government's permission for repatriation of foreign sale proceeds.

The on-going bullish sentiment was apparently based on genuine investment, where the investors after reduction in interest rates, were moving towards capital market.

He pointed out that carry-over charges were quite nominal as it was hovering around 1.4 to 1.6 percent only, while the settlement period consisted of 9 days. Hence it could be inferred that the genuine investment is taking place now a days.

Danish Sikandar of KAB Securities said that the strong surge in the fuel and energy sector maintained the market's bullish trend, pushing the index to the 1479 mark, which is record high for the recent pasts.

PTCL rose by 55 pasia to Rs 23.25 on total business of 41.201 million shares, PSO saw an increase of Rs 2.30 to Rs 217.75 on total deals of 25.741 million shares, Hubco on a trading of 5.570 million shares finished at Rs 22.05, higher by 10 paisa, Sui Northern Gas on a turnover of 2.149 million shares closed at Rs 14.70, showing a rise of Rs 2.10 and ICI on a volume of 2.141 million shares recorded a rise of 45 paisa to Rs 11.20.