20000323

RECORDER REPORT

KARACHI: Speculative forces at the stock market kept it in plus territory on Wednesday with improvement in the PTCL and Hubco.

The trend was positive since the opening bell as buying spurted from the financial institutions and some major players. Several dealers hoped to speculative stocks which generated a buying momentum, but it fizzled out in the second session. However, optimism still prevailed and allowed punters to re-enter the rings. Traders believed that US President Bill Clinton might ease some sanctions imposed on Pakistan in May 1998 when it conducted nuclear tests.

The KSE-100 index rose by 13.97 points or 0.68 percent to 2054.43 from 2040.46 of Tuesday. The volume amounted to 395.130 million shares as against 536.331 million shares of Tuesday. The market capitalisation moved up to Rs 516.127 billion from Rs 515.191 billion.

Nadeem-ud-Din of AHR Securities said that the market started on a bullish note, as buying continued in the selected blue chips. The overall sentiment was strong and buying by the local institutions helped the market to maintain the upward thrust.

However, some rumours regarding clashes at the line control dragged down the prices sharply, creating panic situation and the bulls started selling at that point. But fresh buying interest in PTCL changed the scenario again and the market closed on a positive note.

Mohammad Zubair Ellahi of KAB Securities said the losers outnumbered gainers suggesting that the recently generated activity in second tier was reverting back to high caps.

He added that the approaching, much awaited events with just a single session in between might strengthen the rally and gains made in several scrips. The overall outlook remained positive but profit realisation was not to be ruled out.

An analyst from Westminster and Eastern Services Limited said that the index opened on a firm note and bulls added almost 18 points to it in the morning session, which was later wiped out by the profiteers and the market fell by almost eight points. However, the market bounced back in the last hour trading as bulls took fresh positions in the main scrips-PTCL and Hubco.

The index was moving in a positive band, but it was lacking long-term investment interest. He believed that present bull-run was sentimental and could be choked in the coming sessions.

PTCL on a trading of 130.154 million shares showed an increase of 65 paisa to Rs 34.65, Hub Power moved up to Rs 29.15 from Rs 29.00 as nearly 66.122 million shares changed hands, ICI on a trading of 45.901 million shares closed at Rs 18.05, i.e. lower by 10 paisa, Sui Northern Gas on a volume of 17.846 million shares recorded a drop of 15 paisa to Rs 23.10 and Ibrahim Fibers on a turnover of 15.741 million shares moved up by 25 paisa to Rs 17.50.