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STOCKS

RECORDER REPORT

KARACHI: The Karachi Stock Exchange on Tuesday achieved another milestone recording the highest volume of 536.331 million shares as buying from financial institutions and leading brokerage emerged on select counters and market capitalisation soared to a new high of Rs 515.191 billion.

The daily business surpassed the previous record of 469.470 million shares attained on January 20, 2000. According to a leading trader the volume was up because the tally of buyers and sellers was even throughout the session. After every dip, the market saw fresh buying in the choice and investment core stocks which pushed the daily volume to around 536 million shares.

The KSE-100 index went up by 6.78 points or 0.33 percent to 2040.46 from 2033.68 of Monday. The volume amounted to 536.331 million shares as against 364.653 million shares of Monday. The market capitalisation moved up to Rs 515.191 billion from Rs 513.999 billion, of Monday.

The KSE-100 index recorded a maximum gain of 32 points but at the fag end of the session it came under selling pressures. Profiteers quickly got control of the proceedings which trimmed the share prices across the board.

One of the positive factors for the market was the buying in the second tier stocks which helped the KSE-100 index to consolidate its overnight gains. Though PTCL, ICI, Fauji and Dawood Hercules shed weight the strength shown by Hubco, Japan Power and KESC helped the market to avert a towards minus territory.

Hubco and Japan were up because traders believed that the government would soon resolve the tariff dispute. Shaukat Aziz, the Finance Minister, on Monday said that the government had have received a new proposal from Hubco. The government would soon meet the Hubco officials by the end this month to resolve over two-year dispute.

The KESC has recorded substantial increase in the last couple of sessions on hopes the government would soon sell some of its stake to foreign investors. Traders said that the privatisation of majority stakes would help revive its profits.

A leading analyst said that the start of the day was quite bullish where buying spree in synthetic and rayon sector, especially in Dhan Fiber, resulted in a smart gain. A rumour regarding takeover of Dhan Fibers by Dewan Group was also in the market, which helped the index a lot to register a sharp upsurge.

He added that the upcoming visit of President Clinton was also one of the major factors behind the on-going bullish sentiment and the players were optimistic that probably the market would remain in the plus zone at least till his visit.

Hub Power moved up to Rs 29.00 from Rs 28.45 as nearly 128.115 million shares changed hands, PTCL on a trading of 115.625 million shares showed a drop of five paisa to Rs 34.00, ICI on a trading of 68.941 million shares closed at Rs 18.15, i.e. lower by 65 paisa, Japan Power on a turnover of 48.118 million shares moved up by Rs 1.45 to Rs 9.60 and Sui Northern Gas on a volume of 30.481 million shares recorded a drop of 15 paisa to Rs 23.10.