20000315

5-day bear spell

ends on KSE

RECORDER REPORT

KARACHI: Equities surged forward, ending the five-day bear spell on the Karachi Stock Exchange on Tuesday, as short-covering set in following reports about government's efforts to privatise state-run companies soon and that the country might get loans from donor agencies in a few weeks.

The KSE-100 index registered a rise of 20.80 points or 1.08 percent to 1941.40 from 1920.60 of Monday. The volume amounted to 261.384 million shares as against 164.790 million shares of Monday. Two hundred sixtyeight companies were called on the ready board of which 125 showed plus signs as against 91 losers while 52 remained unchanged. The market capitalisation moved up to Rs 492.584 billion from Rs 488.071 billion.

The stock market opened on a weak note as profit taking and jobbing activity dominated the proceedings. The financial institutions were again net sellers and blue chips and investment stocks slipped by 30 to 90 paisa. Lack of corporate news dampened the investors' mood.

However, the trend suddenly changed during the second session and short covering gained a footing. Several traders pointed out that the government's efforts to privatise state-run units, especially those belonging to the oil and gas sector, boosted the sentiment. Furthermore,the IMF is expected to release funds by the end of this month to ease the pressure on the Pakistan economy.

A leading analyst said that the day started in a bearish mood, and the weak holders continued selling as they were not ready to keep outstanding accounts on the last working day on Thursday. At the same time local institutions were also keeping to the sidelines, hence the market was down on account of lack of interest and lack of confidence.

For the entire first session and the initial stage of the second session, the index remained in the minus column and the bears were apparently dominating the whole scenario.

Fresh buying interest in ICI on account of a news regarding increase in the prices of polyester staple fiber helped the index to record a significant surge and this changed the overall market sentiment.

A dealer said that the strong surge in fiber stocks turned the tempo positive though the broader market had yet to respond. The volume in low price liquid stocks and approaching activity in new listings might revive the market volumes. The broader term outlook is still positive.

The next two sessions are likely to move in a narrow band ahead of Eid holidays. But if some positive development surfaces on the economic front there is a possibility that the index would stay above the 1950 level before closure of the market.

ICI on a volume of 135.322 million shares recorded a rise of Rs 1.70 to Rs 17.70, PTCL on a trading of 50.724 million shares showed a rise of 25 paisa to Rs 32.95, Hub Power moved up to Rs 27.90 from Rs 27.80 as nearly 16.736 million shares changed hands, Sui Northern Gas closed at Rs 21.75, higher by 25 pasia on total turnover of 9.187 million shares and Dewan Salman on a turnover of 8.114 million shares moved up to Rs 36.25 from Rs 35.00.