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RECORDER REPORT

KARACHI: Investors were back in the rings shrugging off their hesitancy of Tuesday and the KSE-100 marked a modest recovery following the statement of President Bill Clinton that the US had no evidence of Pakistan being involved in the hijacking of an Indian Airline's Jet.

The spokesman of the White House rebutted the news item published in the New York Times saying, "We have no evidence that the government of Pakistan had foreknowledge of, supported or helped carryout the hijacking".

"President Bill Clinton's statement that the US has no evidence that Pakistan is any way involved in the hijacking, once again created buying momentum and stocks recorded a modest recovery after Tuesday's plunge", Qasim Lakhani of ABN AMRO Securities said.

The KSE 100 index rose by 37.44 points and closed at 1702.54 as against 1665.10 of Tuesday. The volume amounted to 317.920 million shares as against 378.242 million shares of Tuesday. The market capitalisation moved up to Rs 433.979 billion from Rs 425.644 billion of yesterday.

Salman Ahmad of Finex securities said that the market throughout the session showed erratic movement and after sharp every rise, the index saw a dip which scared the investors.

He added that the clarification from the US that they would not put Pakistan on the list of the nations which support terrorism somewhat restored the confidence of the investors. However, it received a jolt when the market received the news that Justice Saeeduzzaman Siddiqui had refused to continue as Chief Justice of Pakistan. But in the end the market recovered.

Mohammad Zubair Ellahi of KAB Securities said that zig-zag pattern exhibited the market's indecisiveness around inflated levels and if this was prolonged, the unfavourable weak long positions might exert further pressure. The strong closing might extend into next day but it was still advisable to reduce exposure on intra-day rises.

Faisal Abbas of AHR Securities said that the stock exchange was quite bullish after the statement given by President Bill Clinton, but the refusal of six Supreme Court judges to take oath of office under the Provisional Constitution Order hampered the overall trading sentiment. However, confirmation that a number of judges had taken oath, helped the market to surge.

PTCL on a business of 164.016 million shares moved up to Rs 28.80 from Rs 27.95, Hubco on a trading of 72.749 million shares gained 70 paisa to Rs 26.20, PSO on a turnover of 17.374 million shares closed at Rs 238.00, higher by 75 paisa, Fauji rose by Rs 2.10 to Rs 61.35 as nearly 15.961 million shares and ICI on a volume of 15.071 million shares closed at Rs 12.55, higher by 30 paisa.