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RECORDER REPORT

KARACHI: The stock market staged a handsome recovery in the pre-Eid session on the hope that the country would get fresh assistance worth $2 billion from the International Monetary Fund.

According to a report, a fact finding mission which arrived last month to review the economy had said that Pakistan was expected to get $2 billion from the International Monetary Fund. A mission headed by Ms. Sena Eken is expected to arrive by the end of this month or in early April and might recommend fresh funding for Pakistan.

Analysts said that the package would help reduce the budget deficit following the shortfall expected in revenue collection. However, they believed that the release of funds by IMF would showed that their confidence in the country had been restored.

The KSE-100 index registered a rise of 53.40 points or 2.74 percent to 2001.97 from 1948.57 of Wednesday. The volume amounted to 207.318 million shares as against 275.690 million shares of Wednesday. Two hundred fortytwo companies were called on the ready board of which 161 showed plus signs as against 45 losers while 36 remained unchanged. The market capitalisation moved up to Rs 507.132 billion from Rs 494.704 billion.

Besides expectations of IMF assistance, another stabilising factor was the scheduled arrival of US President Bill Clinton in South Asia. After Eid-holidays, the US president would be in South Asia and he is expected to visit Pakistan on March 25. Analysts said that the visit of the president might defuse tension between the two nuclear capable countries of the Sub-continent. Several incidents were reported in the last couple of weeks between Pakistan and India on the Kashmir borders. Traders said that the economy was limping back to normalcy and the only hurdle or destabilising factor was the clashes between the two countries. Any Kargil like situation might wash away all the recovery made in the last five months in the stock market.

The buying on Thursday was quite energetic. The nominal badla rates helped the equities to bloom and traders opined that the trend would continue for two more sessions after Eid holidays. The index has once again broke the barrier of 2000 which is a good omen for the market. This level would encourage retail investors to re-enter the rings soon.

However, a few traders asserted that financial institutions might offload some of their holdings in the coming sessions to book profits. They were expected to reallocate their funds to hot favourites and might sell scrips belonging to cement, sugar and textile sectors.

ICI on a volume of 82.516 million shares recorded a rise of Rs 1.60 to Rs 19.10, PTCL on a trading of 34.828 million shares showed a rise of 55 paisa to Rs 33.65, Hub Power moved up to Rs 28.40 from Rs 28.25 as nearly 16.454 million shares changed hands and Sui Northern Gas on a turnover of 6.596 million shares moved up to Rs 22.85 from Rs 22.20.