07 October 2004	Thursday	21 Shaban 1425

KARACHI, Oct 6: Stocks on Wednesday recovered from the overnight lows amid heavy short-covering in most of the pivotals aided by perceptions that huge funds will be ploughed back in the share business after the central bank ban on bank credits for the property business. The KSE 100-share index soared to 5,300 points, up 66.25 points.

The central bank action follows reports of a massive bank involvement in the property market, ending the prevailing speculation, which has pushed prices of plots, houses and flats to new peak levels.

Bank shares reacted positively to the central bank step and rose sharply, although long-term impact on their profits could be negative. After at one stage breaching through the barrier of 5,300, the KSE 100-share index finally closed at 5,299.53, up 66.25 points as compared to 5,233.28 a day earlier, reflecting the strength of OGDC and PTCL, the two leading base shares.

The market capital also consolidated well above crucial level of Rs1,500bn at Rs1,508.319bn, up Rs16.434bn over the previous close. "The market's positive reaction to the state bank step was well-reflected in the share market as both financial institutions and punters virtually rushed to grab the floating stock at the prevailing prices," analysts said.

"The general perception is that the step could take the market to new highs for the near-term." The central bank on Tuesday directed the banks and DFIs to extend loans only for housing purposes for plots to bona fide construction companies and individuals, ending the prevailing speculative trade in the real estate.

"Owing to liberal bank credit lines property prices in the city have risen sharply in the recent past, having a negative impact on stock trading", brokers said "hopes that funds will be ploughed back in the share business evoked a lot of interest in the low-priced shares."

An idea of prevailing optimism on the market may well be had from the fact that investors ignored some disturbing news from the carryover market where both the volume and the rates are again rising.

Moreover, higher dividend announcements from some of the leading companies due during the current week could also reinforced the perception that the market is now in a good shape and could seek further higher levels in the coming sessions.

All the sectors participated in the run-up, the notable feature was that some of the overvalued shares led the market advance under the lead of OGDC, PTCL and some others. But bulk of the support was confined to the energy sector on reports of higher world oil prices.

Plus signs dominated the list, major gainers being Al-Ghazi Tractors, Berger Paints, Grays of Cambridge, Shell Gas and AKD Securities, up by Rs7.05 to Rs14.70. Other good gainers were PSO, Haroon Oils, Mitchell's Fruits, Treet Corporation and Atlas Battery, which posted gains ranging from Rs4 to Rs5.

Losers were led by Murree Brewery, Lakson Tobacco, Pakistan Engineering, Shezan International, Bengal Fibre, EFU Life Insurance and National Foods, off Rs3 to Rs5.75. Trading volume rose 321m shares as gainers held a strong lead over the losers at 197 to 126, with 53 shares holding on to the last levels.

OGDC topped the list of most actives, up by Rs1.70 at Rs65.65 on 66m shares followed by PTCL, higher by 85 paisa at Rs44.10 on 55m shares, Bank of Punjab, up by Rs1.55 at Rs59.50 on 20m shares, National Bank, firm by 55 paisa at Rs70.70 on 18m shares and Sui Northern Gas, higher by Rs1.55 at Rs56.05 on 16m shares.

Other actives included D.G.Khan Cement, firm 25 paisa on 15m shares, Lucky Cement, lower 15 paisa on 14m shares, Askari Bank, easy 10 paisa on 13m shares, Nishat Mills, up by Re1 on 12m shares and PSO, sharply higher by Rs4.05 on 10m shares.

FORWARD COUNTER: PPL came in for strong support at the lower levels and rose by 30 paisa at Rs120.20 on 15m shares followed by PTCL, higher by 70 paisa at Rs44.10 on 9m shares and OGDC, higher by Rs1.55 at Rs65.65 on 6m shares.

Bank of Punjab followed them, higher by Rs1.40 at Rs59.60 on 5m shares and D.G.Khan Cement, up by 30 paisa at Rs50.50 also on 5m shares. Others were also actively traded.

DEFAULTER COS: Unity Modaraba came in for stray selling at the higher levels and fell by five paisa at Rs2.30 on 0.350m shares followed by Asset Bank, easy 15 paisa at Rs6 on 0.242m shares and Lafayette Industries, lower 30 paisa at Rs2.20 on 0.136m shares.

DIVIDEND: Murree Brewery, cash 25 per cent, bonus shares 25 per cent, Dewan Salman, bonus shares 7.5 per cent, Habib Bank Modaraba, cash 20 per cent, right shares of 100 per cent, Balochistan Glass, Pioneer Cement, Capital Asset Leasing and Tri-Star Fund, nil.