03 November 2004	Wednesday	19 Ramazan 1425

KARACHI, Nov 2: Stocks on Tuesday recovered from the overnight lows followed by an active short-covering by all and sundry under the lead of institutional traders and punters at the lower levels. The KSE 100-share index was up by 83 points at 5,329.88 points and added Rs22 billion to the market capital.

The market has been in an oversold position owing to selling during the last week and needed a correction and that came in the form of short-covering at the lower levels.

"It is too early to think that the US election may not influence the market trend until the results are announced," says a leading broker, adding "Pakistan has a stake in it and the post-election reaction of the market will demonstrate it in either-way."

The KSE 100-share index recovered the overnight loss and was quoted higher by 82.97 points at 5,329.88 as compared to 5,246.91 a day earlier as all the leading base shares recovered from the overnight lows under the lead of OGDCL and some others, most of which virtually raced towards their pre-reactional level on strong support at the lower levels.

The snap rebound surprised many leading analysts who were still predicting a bear-run, but they are unsure whether or not the run-up could be sustained during the coming sessions.

The US election uncertainties, however, again dominated the trading as investors played safe apparently awaiting initial voter tilt in favour of their respective candidate.

Bulk of the buying remained confined to most of the undervalued shares, notably in energy, cement and bank sectors where capital gains are still fairly attractive and the investors cashed in on them.

"Americans go to polls but not without creating a lot of global uncertainties about the final outcome," analysts said. "The world markets may not be in turmoil allied worries among the respective camps are there."

Local bourse was, therefore, no exception as it followed the general trend of financial markets elsewhere, although some of the leading analysts claim the local market "reacted beyond its immediate mandate".

The general perception is, however, that the market will remain highly volatile during the next couple of sessions until the unofficial results of the US elections are announced.

The future direction of the market will largely be guided by the behaviour of the leading institutional traders, brokers said, adding "if they chose to keep to the sidelines, then there could be further price erosions and if they are back in the market there could be a lot of bargain-hunting."

Plus signs dominated the list under the lead of Pakistan Oilfields, Arif Habib Securities, Abbott Lab, Shezan International, Unilever Pakistan, Javed Omer, and Grays of Cambridge, which posted gains ranging from Rs6 to Rs19.05.

Other good gainers included National Refinery, PSO, Millat Tractors, Pakistan Cables, Noon Pakistan, and Gadoon Textiles, up Rs4.25 to Rs6.50.

Prominent losers were led by Atas Battery, Sapphire Fibre, Clover Pakistan, National Foods, Glaxo-SKF, International Industries, and Lakson Tobacco, off Rs3.45 to Rs10.

Trading volume rose to 188m shares from the previous 102m shares as the gainers forced a strong lead over the losers at 190 to 96, with 32 shares holding on to the last levels.

OGDCL topped the list of actives, up 95 paisa at Rs65.80 on 17m shares followed by Fauji Fertilizer Bin Qasim at Rs20.95, higher by 85 paisa on 16m shares, D.G. Khan Cement, sharply higher by Rs2.20 at Rs48.70 on 15m shares, PPL, up Rs1.40 at Rs117.15 on 14m shares and National Bank, higher by Rs1.70 at Rs71.25 on 13m shares.

Other actives were led by Sui Northern Gas, off 70 paisa on 11m shares, Lucky Cement, up Rs2.20 on 9m shares, Bank of Punjab, sharply higher by Rs3.65 also on 9m shares, Askari Bank, higher Rs2.60 on 7m shares and PICIC Growth Fund, up Rs2.25 also on 7m shares.

FORWARD COUNTER: OGDCL led the list of actives, up 90 paisa at Rs66.30 on 8m shares, followed D.G. Khan Cement, higher by Rs1.90 at Rs48.90 on 4m shares, Fauji Fertilizer Bin Qasim, steady by 85 paisa at Rs21.15 on 4m shares and Sui Northern Gas, lower 70 paisa at Rs51.45 on 3m shares.

But the largest rise was noted in Engro Chemical, PSO, and Pakistan Oilfields, which recovered Rs3.30 to Rs4.95 amid active trading and some others also followed their lead.

DEFAULTER COS: Crescent-Standard Bank came in for stray support and rose by 25 paisa at Rs9.80 on 0.183m shares, while all others were modestly traded.