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RECORDER REPORT

KARACHI: Bulls struck back at the stock market on Wednesday and frustrated every attempt of bears to take control of the proceedings as buyers surprisingly ignored the development that President Bill Clinton was not visiting Pakistan.

The market during the first session was sluggish as financial institutions and leading brokerage houses stayed back. They were reluctant to strike fresh deals in the running market. The main factor behind the dull session was that President Bill Clinton had decided to visit India and Bangladesh and had reserved its decision about Pakistan.

This gave a setback to traders and dealers who offloaded their holdings and the market suffered a small slide of 10 to 12 points before noon. However, some seasoned traders opined that the visit of President Bill Clinton would be a routine one and he would not announce any major economic measures for Pakistan. He would not propose any package. So it was best time to re-enter the rings. Dealers and traders made sizable deals in choice scrips which promised good returns if purchased on current levels.

Hence, the KSE-100 index staged a grand recovery and recorded an increase of 35.66 points to 1795.95 from 1760.29 of Tuesday. The volume amounted to 251.525 million shares as against 216.054 million shares of Tuesday. The market capitalisation moved down to Rs 457.743 billion from Rs 449.546 billion of Tuesday.

A ray of hope emerged among the investors as rumours filtered into the market about the results of the PTCL to be announced on Thursday. The company would release its financial results for the six months ending December 31. Analysts expected the profit of the company to range between Rs 7 billion to Rs 8.2 billion. They added that during the first quarter of 1999-2000 the profit of the company was nearly Rs 4.2 billion and as the performance in the second quarter was better and the earnings might reach over Rs 8 billion.

Dewan Salman Fibers and Sui Northern Gas were once again on the buying chart of the investors. Dewan Salman was expected to announce its results soon, and the gas company recorded has already sharp gains as the privatisation commission is expected to sell government stakes to foreign investors soon. A few pharmaceuticals companies gained momentum as the government has hinted at a 10 percent increase in drug prices. The increase, due since 1996, would boost their earnings in the coming financial year.

PTCL on a business of 104.580 million shares moved up by 75 paisa to Rs 30.40, Hubco on a trading of 42.568 million shares was unchanged at Rs 28.75, ICI on a volume of 28.995 million shares closed at Rs 13.55, higher by 55 paisa, Tripack recorded a rise of Rs 1.90 to Rs 36.50 as nearly 7.558 million shares changed hands and Fauji Fertilizer on a turnover of 7.516 million shares closed at Rs 65.40, higher by 35 paisa.