KSE-Index gains 69 points in Pakistan
Pakistan Times Business & Commerce Desk

KARACHI: The Karachi share market regained its brisk characteristics in trading to strengthen the KSE-100 index by 69 points to the 8933 level at the close of the day on Friday.

Though the start of the market was a bit volatile, nonetheless, the index gradually strengthened itself to mark an intra-day high at 8962 points.

The second half of the session was relatively languid as profit taking crept into smoothly advancing from various quarters and most of the scrips closed below their day’s highs.

The Cement and Banking stocks were mainly responsible for reinforcing today’s rally. The cement stocks like D.G. Khan Cement, Fauji Cement, Lucky Cement and Maple Leaf Cement bagged gains by 1.1%, 4.9%, 0.3% and 2.6% respectively.

On the Banking side, the heavy weight NBP, Bank Alfalah, Union Bank and Askari Bank also managed to post appreciable increase by grabbing their share by Rs1.40, Rs1.85, Rs1.35 and Rs1.05.

On the other hand, PTCL was once again fueled on the back of news reports mentioning developments over its privatization. The telecom giant posted an overall gain of Rs0.60 to close at Rs64.35. It may be mentioned that as earlier reported the Etisalat people have asked the government to consider a reduction in the amount previously agreed between the two for the sale of Pakistan Telecommunication Company Limited (PTCL).

The Privatization Commission and the top management of the UAE-based telecom company – 60 percent of which is owned by the UAE government – have started negotiations to resolve the outstanding issues and finalize the PTCL deal.

Etisalat made a winning $2.6 billion bid for a stake in the state-owned PTCL along with management control in June. The company paid the first installment of $260 million in the same month, but failed to meet an October 31 deadline to pay the remaining amount.

Meanwhile, FFBL also performed exceptionally by increasing 3.0% to close at Rs37.40. Suis showed significant spark on the back of news reports that Pakistan and Iran have reiterated their commitment to the transnational gas pipeline project. SSGC and SNGPL increased by 4.9% and 1.3% respectively.

The notable scrips that closed in the negative zone were MCB, OGDCL, HUBCO and POL.

Volumes were also at an encouraging level at 494m shares with the futures market constituting approx. 17% of the total trading activity. Advancers outpaced decliners by a margin of almost two to one.

Pakistan International Airlines also moving upward on the back of financial performance of the national airliners which has posted revenue of Rs 15.981 billion in July- September 2005, compared to Rs 14.556 billion. The cost of services Rs 15.406 billion compared to Rs 12.689 billion in corresponding period of 2004.

PIA achieved actual growth of 10 percent in turnover during July- September 2005, over same period of 2005 and increase in operating expenses (excluding fuel) was restricted to 1.1 percent Passenger traffic improved by 11 percent over corresponding period last year and a record seat factor of 80 percent was achieved in same quarter.

Activity at the capital market is likely to take some busy schedule following decision of the government to set up a committee for the privatization of Pakistan Steel Mills Corporation (PSMC). The committee comprises representatives from Privatization Commission (PC), Ministry of Industries, Production & Special Initiatives and Citigroup.

The Committee will undertake a ground check of the area being considered for core steel plant and ancillary facilities and to recommend only the strategic areas required for the operation and expansion of the entity.●