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Election schedule boosts stock trading

KARACHI —The announcement of the national elections schedule by the president seems to have ended the one phase on political uncertainty and investors welcomed it by resuming covering purchases at the attractively lower on almost all the counters.

The market's buoyant mood was also well-reflected in the big rebound staged by the KSE 100-share index, which surged by 231.80 points or 1.73 per cent at 13,655.67 on strong short-covering by the local investors and institutional investors,adding Rs75.00 billion to the market capital at Rs4,170.00. Its junior partner was quoted higher by 298.86 points at 16,312.57.

Investor perception that the sanity will return to stock trading after the national elections before January 15,next year as the future government will be well in place ending the current agitation and removing many other irritants was the chief factor behind the return of the prodigal sons, said a leading analyst.

He said the assumption that the reelection of the president for the second term appears to be pretty certain and that could well mean the continuity of the current financial and economic policies sent a wave of optimism in the market leading to snap recovery.

"However, return of the foreign investors may be further delayed until the emergency was lifted as they will await fresh development on the post-election schedule trading sessions", some others said.

"The current lower levels attained by most of the leading shares,however, provide an attractive bait for any prospective investor having strong holding capacity to make fresh investment", said a leading analyst "but low volume figures showed leading among them are still in two minds about the future share market outlook".

Plus signs dominated the list under the lead of Colgate Pakistan and Rafhan Maize Products, up by Rs32.40 and 100.00, while prominent losers were led by KSB Pumps and Unilever Pakistan,off by Rs13 and 97 respectively.

Trading volume did not match the selective buying and was maintained at the weekend level of 220 million shares, but gainers forced a strong lead over the losers at 255 to 82, with 29 shares holding on to the last levels.

TRG Pakistan led the list of actives, up one rupee at Rs13.50 on 22 million shares followed by OGDC, higher by Rs1.05 at 116.90 on 14 million shares, National Bank, sharply higher by Rs9.25 at Rs239.25 on 14 million shares, Attock Refinery, up by Rs12.20 at 280.20 on 13 million shares, Pakistan Petroleum, firm by Rs1.40 at 251.45 on 8 million shares, Pakistan Oilfields, lower 30 paisa at 333.00 on 7 million shares, and Engro Chemical, up Rs3 at 272 also on 7 million shares.