01 May 2004	Saturday	10 Rabi-ul-Awwal 1425

KARACHI, April 30: Stocks on Friday staged a snap recovery aided by strong institutional and general support at the attractively lower levels, indicating that the current downward drift may have run its course on technical grounds.

The index also recovered 83.85 points or 1.57 per cent at 5,430.43, adding Rs21bn to the market capital at Rs1,457bn.

Analysts always welcome the weekend rally as it generally paves the way for its extension when the trading resumes next week. But it is more important as preceded a long weekend as the market will also remain closed on Monday on account of Eid Milad-un-Nabi.

After having received massive battering during the last couple of sessions, stocks roared back to their pre-reaction levels on massive short-covering in the leading index shares, notably OGDC and PTCL and higher corporate announcements by some of the leading companies.

The KSE 100-share index recovered 84 points at 5,430.43, indicating that it has resumed its onward march to the index level of 6,000 points that too at the weekend session, which generally attracts unloadings.

The credit for putting the market back on the rails largely goes to energy and cement sectors, which confidently absorbed any amount of selling in a violent trading week that just ended. Higher exports, and predictions of handsome dividend by leading among them continued to inspire strong buying in most of the cement shares, dealers said.

"The KSE 100-share index seems to be trying to consolidate around 5,600 level at least for the near-term", says an analyst "but no one could deny the fact that it is eyeing the next target of 6,000 possibly before national budget in June".

Its early week weakness and highly erratic movements is largely attributed to violent either-way fluctuations in the OGDC and Hub-Power as some of the leading players are out to push their values lower and then to cover positions.

"Some of them have massive idle amounts of hard cash and want to invest in shares, notably OGDC and that is perhaps why it share value is unstable despite a good second interim dividend of 17.5 per cent and predictions of still higher final", he says.

Interim profit of PTCL at about Rs20 billion was on the higher side of the market and was well-received in the market as was reflected by snap recovery. It along with other pivotals including OGDC, Hub-Power, PSO pulled the market out of the current sluggishness and that too at the weekend session.

Weekend rally and that when a long weekend is ahead always points to a robust market after trading resumes next week, brokers said adding the current correction phase seems to be now over.

All the low-priced leading shares, notably in the chemical, cement, energy, insurance and banking sectors participated in the run-up and finished with most of the previous losses partly pared. Prominent gainers were led by Clover Pakistan, National Foods, Security Papers, Packages and Javed Omer, which recovered Rs7.25 to Rs21.05 from the recent lows.

They were followed by National Bank, Sapphire Fibre, Cherat Cement, Goodluck Industries, Arif Habib Securities and Unilever Pakistan, up by Rs4.80 to Rs25. Losers were led by New Jubilee Insurance, PNSC, HinoPak Motors, Noon Sugar Island Textiles, Abbott Lab and Colgate Pakistan, which suffered fall ranging from Rs2.40 to Rs10.15.

Meanwhile, provisional trading was resumed in the shares of Southern Network at the face value of Rs10 but finished higher at Rs15.80 on 0.829m shares after hitting the day's peak level of Rs16.55.

Trading volume, however, failed to keep pace with the rising buying offers as investors were not inclined to sell amid predictions of an imminent price flare-up next week. It fell to 498m shares as compared to 502m shares a day earlier. Gainers forced a strong lead over the losers at 208 to 106, with 46 shares holding on to the last levels.

PTCL topped the list of most actives, up by 95 paisa at Rs44.30 on active support triggered by higher interim earnings, on 62m shares followed by OGDC, firm 20 paisa at Rs67.75 on 53m shares, Fauji Cement, higher by Rs1.20 at Rs16.55 on 51m shares, National Bank, up by Rs4.80 at Rs69.15 on 46m shares and D.G.Khan Cement, higher by Rs1.60 at Rs58.35 on 33m shares.

Other actives included MCB, up by Rs2.45 at Rs56.00 on 32m shares, Lucky Cement, firm by 40 paisa on 26m shares, Sui Northern Gas, higher by 65 paisa on 22m shares, Bank of Punjab, up by Rs3.60 also on 22m shares and Sui Southern Gas, higher by 90 paisa on 21m shares.

FORWARD COUNTER: PTCL led the list of actives, up by Rs1.04 at Rs44.39 on 10m shares, Hub-Power, steady by 30 paisa at Rs35 on 4m shares, FF Bin Qasim, firm by 20 paisa at Rs21.50 on 3m shares, MCB, higher by Rs2.84 at Rs56.24 on 3m shares and Dewan Salman, up by 30 paisa at Rs24.75 also on 3m shares. Some others also finished fully recovered.

The matured April settlements were rung off the board and May settlement assumed the role of ruling contracts and most of them ended higher amid active trading.

DEFAULTER COS: Slack trading was again witnessed on this counter as investors did not make fresh buying because of coming holidays. Biafo Industries and Standard Bank, were exceptions, which fell and rose by 20 paisa and 80 paisa at Rs4.20 and Rs11 respectively on 0.184m and 0.105m shares.