12 June 2004	Saturday	23 Rabi-us-Saani 1425

KARACHI, June 11: Stocks on Friday staged a smart recovery as institutional traders covered positions at the lower levels on those counters, which were rumoured to be the chief beneficiary of the fiscal incentives in the budget for 2004-05 , which is being announced by Finance Minister Shaukat Aziz on Saturday.

The KSE 100-share index recovered 13.28 points at 5,384.48.

Auto shares were in the lead on reports that the import of reconditioned cars may not be allowed, but Al-Ghazi Tractors suffered sharp fall followed permission to import tractors after paying 10 per cent duty. The president on Thursday announced a number of incentives for the agriculture sector to boost production.

Banks, insurance and fertilizer shares also rose and so did textiles one on identical reports about the fiscal incentives in the budget. But instances of pre-budget speculative buying were lacking as leading investors could not precisely decide how to digest the negative fallout of the terrorist attack on the corps commander's convoy and heavy death toll.

After early rising by 30 points, the KSE 100-share index finally finished with modest gain of 13.28 points at 5,384.48 compared to 5,371.20 a day earlier as leading base shares notably PTCL, OGDC ended higher.

There was no trace of the overnight panic-selling after the trading resumed as investors resumed their normal operations, although on a limited scale. What was, however, more important was the absence of sellers, which in turn allowed the market to close on an improved note.

Bulk of the support originated from the financial institutions as general investors were still in two minds about their future course of action in the backdrop of attack on the corps commander on Thursday.

Cement shares, which have been under profit-selling for the last two sessions after a meteoric rise during the last two months on reports of a major breakthrough on the export front came in for active support at the lower levels and significantly contributed to the market's advance.

Energy shares, notably SSGC and OGDC followed them and so did blue chips in the fertilzer and banking sectors but on the other hand bears kept to the sidelines ahead of the budget.

"There was no sign of pre-budget speculative buying as both bargain-hunters and speculators were conspicuous by their absence", brokers said "everyone is worried on the law and order situation as the attack on the corps commander's convoy and killing of 11 persons has altogether changed the investors peace perceptions".

"Much will now depend on the fiscal measures including tax cuts and reliefs in the budget". But the negative fall-out of the Thursday terrorist attack would continue to haunt a large number of investors in the weeks to come as they would await fresh developments on the issue before resuming normal buying and selling operations.

Plus signs dominated the list under the lead of Shahtaj Sugar, Shell Pakistan, Atlas Honda and Haroon Oil, which posted gains ranging from Rs4.70 to Rs6 followed by Din Textiles, Pakistan Refinery, Pak-Suzuki Motors, which rose by Rs3.25 to Rs3.85.

Losers were led by Al-Ghazi Tractors, Grays of Cambridge, Treet Corporation Javed Omer and Siemens Pakistan, which suffered fall ranging from Rs9.50 to Rs28.25. Lakson Tobacco, Clariant Pakistan, Ferozsons Lab and IGI Insurance were also marked down by Rs4.25 to Rs10.75.

Trading volume, therefore, fell to 305m shares from the previous 409m shares but gainers forced a strong lead over the losers at 219 to 120, with 38 shares holding on to the last levels.

D.G.Khan Cement led the list of actives, up by 90 paisa at Rs61.05 on 32m shares followed by First Prudential Modaraba, firm by 50 paisa at Rs4.90 on 21m shares on reports of management change, Fauji Cement, firm by five paisa at Rs18.40 on 20m shares, Telecard, up by 85 paisa at Rs26.60 also on 20m shares and National Bank, higher by 50 paisa at Rs64.90 on 16m shares.

Other actives were led by PTCL, steady five paisa on 16m shares, OGDC, firm by also by the same amount also on 15m shares, Nimir Chemicals, up by 85 paisa on 11m shares, Lucky Cement, higher by 35 paisa on 10m shares and F.F.Bin Qasim, up by 10 paisa on 9m shares.

FORWARD COUNTER: Bank Alfalah came in for modest support and rose by 35 paisa at Rs62.35 on 9m shares followed by PTCL, steady by five paisa at Rs42.25 on 6m shares, Hub-Power, lower 15 paisa at Rs32.50 on 5m shares, F.F.Bin Qasim, firm 15 paisa at Rs20.65 on 2m shares and Pak PTA, up by 10 paisa at Rs18.60 on 2m shares. Fauji Fertilizer was top gainer, up by Rs1.15 at 122.90 on light turnover.

DEFAULTER COS: Unity Modaraba came in for strong support and rose by 45 paisa at Rs2.80 on 3.449m shares followed by Dandot Cement, off 90 paisa at Rs13.75 on 0.933m shares, Crescent Spinning, up by 45 paisa at Rs7 on 0.646m shares and Unicap Modaraba, higher also by 45 paisa at Rs3.55 on 0.496m shares.