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KSE index shoots up 63 points

RECORDER REPORT

KARACHI: Bullish fervour at the stock market set in on Monday and KSE index scored a 63 points gain on the report that President Bill Clinton will visit Pakistan, and soon the government would privatise state-run companies such as PTCL, Sui Northern Gas and PSO.

The KSE-100 index rose by 63.47 points to 1970.38 from 1906.91 of Friday. Volume amounted to 293.198 million shares as against 279.059 million shares of Friday.

About 340 companies were called on the ready board of which 166 showed plus signs, 102 were losers while 72 remained unchanged. Market capitalisation moved up to Rs 500.512 billion, from Rs 486.498 billion.

Buying continued unabated since morning and the index recovered most of the losses of last week. Most of the traders said it was merely a speculative activity. However, some said as the clashes between Pakistani and Indian troops have died down, the sentiment improved.

Salman Ahmad, of Finex Securities, said that the report that President Bill Clinton is likely to visit Pakistan boosted the sentiment and the index recorded hefty gains.

He added that apart from this factor, some fundamental changes expected in a week's time also fueled the sentiment. The privatisation process was likely to be commenced soon; oil marketing companies were likely to earn more profits as government might increase petroleum prices following the hike in international oil prices; and Hubco and Wapda were likely to meet soon to resolve the over two year rift on power tariff.

Faisal Abbas, of AHR Securities, said that trading sentiment was quite bullish where the day started on a bullish note and the index sharply surged by more than 50 points. Needless to say, the expected visit of Bill Clinton gave boost to the entire trading process. In addition, PTC was again in high demand on account of its recent move of signing an agreement with the Canadian company for mobile phone service.

He pointed out that a rumour regarding Sui Northern Gas Pipelines that an international oil company had submitted a bid to purchase its stake also helped the market to record further gain. Fresh institutional buying not only paved the way for local investors to jump into the trading arena, but also made the sentiment more bullish, especially in some blue chips items.

An analyst from Westminster and Eastern Services said that the bulls outclassed the bears once again, leading the market with substantial rise in PTC, Hubco and PSO. However, PSO fell victim to profit hunters towards the end of the first trading session.

The market opened 42 points up owing to the news of a possible stopover by President Clinton in Pakistan. The bulls were active in the ring, and almost all active scrips were on the rise. Buying interest was also seen in the fiber, fuel and energy sectors. The index is in a positive note and expected to continue its upward thrust in the coming sessions.

PTCL on a trading of 105.578 million shares showed a rise of Rs 1.35 to Rs 33.00, Hub Power moved up to Rs 27.85 from Rs 26.55 as nearly 66.968 million shares changed hands; PSO on a turnover of 26.330 million shares closed at Rs 262.40, higher by Rs 7.40; ICI on a volume of 24.045 million shares gained 45 paisa to Rs 14.90; and Sui Northern Gas on a business of 21.232 million shares recorded a rise of Rs 2.00 to Rs 23.50.