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RECORDER REPORT

KARACHI: Equities rose sharply on Monday and the index broke the 1800 barrier on reports that the country would get fresh loans from international donor agencies and the government would soon resolve the dispute with the Hub Power Company.

The KSE-100 index registered a rise of 21.97 points to 1821.65 from 1799.95 of Friday. The volume amounted to 271.359 million shares as against 202.385 million shares of Friday. The market capitalisation moved down to Rs 463.529 billion from Rs 458.361 billion of Friday.

The market during the first session was in the plus column. However selling pressure was witnessed in Hubco. But the statement of the Chief Executive, General Pervez Musharraf that his government was keen to resolve the dispute with the Hubco, rehabilitated the confidence of the general investors. General Musharraf said that already the government in three months had resolved disputes with six private power producers and talks with other companies were in advanced stages.

Renewed buying in Hubco helped the market to take a U turn and in the second session a grand rally was witnessed. The market at the end of the first session was up by nine points but at the close, the index had crossed the 1800 level.

The Finance Minister Shaukat Aziz said that World Bank, International Monetary Fund and Asian Development Bank had given assurances that soon they would release loans which would help ease Pakistan's economic problems.

Faisal Abbas of AHR Securities said that the overall sentiment was bullish. Buying interest in PSO boosted the sentiment in the initial stages and most of the issues staged handsome rise. However, profit taking came in after some time which reduced the gain in PSO and the rest followed the suit.

Indeed, the ongoing tension at the Line of Control was the main cause of concern and market men were quite cautious and reluctant to take any long positions. Hence, the trading was seen in a narrow band for some time but a buying spree in PTCL helped the index to surge on a major scale.

Mohammad Zubair Ellahi of KAB Securities said that the stability in high caps, along with liquidity in second tiers was sending positive signals ahead.

He added that the index was gradually approaching new peaks and once this was attained, the tempo might gain further momentum. The broader term outlook was still positive, suggesting buy on dips.

The index according to an analyst might touch the 1860 level soon and after touching this point, it might receive some correction. However, analysts believed that the index would see the level of 1900 level before the end of this month. But as the reports were filtering in about the resolution of the Hubco dispute, traders and dealers believed that there were chances that before end of this month the index might see 200 mark.

PTCL on a business of 139.722 million shares moved up by 60 paisa to Rs 31.30, Hubco on a trading of 62.775 million shares improved by 60 paisa to Rs 27.95, ICI on a volume of 14.104 million shares remained unchanged at Rs 13.20, Sui Northern Gas moved down to Rs 20.60 from Rs 21.20 as nearly 12.088 million shares changed hands and Tripack Films on a turnover of 8.157 million shares closed at Rs 38.65, higher by Rs 3.65.