20000316

Blue chips,

investment

stocks show

erratic trend

RECORDER REPORT

KARACHI: Though the stock market closed on a stronger note, but blue chips and trading investment stocks showed erratic movement throughout the session on Wednesday, creating opportunities to book profits on every dip.

The KSE-100 index registered a rise of 7.17 points or 0.37 percent to 1948.57 from 1941.40 of Tuesday. The volume amounted to 275.690 million shares as against 261.384 million shares of Tuesday. Three hundred six companies were called on the ready board, of which 131 showed plus signs as against 108 losers while 67 remained unchanged. The market capitalization moved up to Rs 494.704 billion from Rs 492.584 billion.

Speculative activity ruled the roost. Buying and selling matched on several counters. Selling was observed in some of the pivotals but improvement in the trend setters, PTCL, Hubco and Sui Northern Gas, helped to boost the sentiment and the index closed on a positive note.

A leading trader said that the badla rates were within the range and the quantities executed showed that several punters were optimistic and believed that after Eid holidays the market would show some upward strides.

Sixtyfive million shares of PTCL were lifted on credit after paying badla rates at 11 paisa, 50 million shares of Hubco on nine to 11 paisa, 27.5 million shares of ICI on 6.5 to 7 paisa, while the rates for Adamjee Insurance were 47 to 50 paisa, and for Dewan Salman Fibers 13 paisa.

An analyst from Westminster and Eastern Financial Services Ltd., said that the bulls dominated the rings and the index resumed its rising trend on the last day of the settlement period. The index opened on a strong note, and selective buying continued unabated throughout the day. The market witnessed some profit taking from the weak holders , as they remained reluctant to hold their positions, owing to coming Eid holidays. The market, however, maintained its upward thrust.

He added that the market had successfully bounced back from a mild correction and might extend its climb in the coming sessions. He believed that there were, however, a couple of factors that were not encouraging the bulls to hold their positions for a longer term. Firstly, the market was missing stimulating news, which could raise the confidence level of investors. Secondly, institutional participation in the market had declined substantially, and they were reluctant to pump in more liquidity on prevailing rates.

Faisal Abbas of AHR Securities said that despite Wednesday being the last working day of the settlement week, the session closed on a positive note. The fertilizer stocks showed smart recovery as the government imposed 10 percent regulatory duty on import of urea.

The buying spree in the chemical and pharmaceutical sector helped the overall trading to remain bullish throughout the day.

PTCL on a trading of 71.427 million shares showed a rise of 15 paisa to Rs 33.10, ICI on a volume of 57.460 million shares recorded a fall of 20 paisa to Rs 17.50, Hub Power moved up to Rs 17.50 from Rs 27.90 as nearly 49.347 million shares changed hands, FFC Jordan closed at Rs 14.95, higher by Rs 1.20 on total turnover of 34.530 million shares and Sui Northern Gas on a turnover of 13.103 million shares moved up to Rs 22.20 from Rs 21.75.