January 27, 2006	Friday	Zilhaj 26, 1426

KARACHI, Jan 26: After initial fall, stocks on Thursday staged a broad rally as investors resumed their covering operations on the blue chip counters under the lead of cement and oil shares aided by reports of higher corporate earnings. The KSE 100-share index was up by another 91 points at 10,305.00.

But bulk of the buying interest again remained confined to the overvalued shares as an attractive bait of swift capital gains did not allow bargain hunters to sit on the sidelines.

“The next couple of sessions are crucial for the future direction of the market as board meetings of some leading companies are due before the month is out”, brokers said “heavy speculative buying in them reflects the market talk of higher dividend”.

The opening was, however, a bit bearish owing to negative fallout of settlement of outstanding dues in the rung off January contracts on the forward counter but the mid-session witnessed the return of bulls which covered positions at the early fall.

The KSE 100-share index finished with an extended gain of 90.79 points at 10,304.80 after hitting the day’s lowest and the highest at 10,123.94 and 10,312.72 respectively, reflecting the strength of leading base shares.

Analysts said that unlike the previous bull-run, the current buying euphoria was led by the cement and oil sectors minus the leading banks, notably National Bank, which came in for active selling at the overnight highs.

“Apart from reports of pre-bid meeting for the sell-off of PSO, during the next two weeks, heavy buying in the oil shares notably Pakistan Petroleum and Pakistan Oilfields was also attributed to their board meetings during the next couple of sessions”, they said.

According to rumours, the both oil companies were expected to announce higher payouts and that could well mean further extension in the current bull-run, and the consequent price flare-up, they said.

The other contributory factor was an increase of Rs2 per kg in prices of polyester fibre as was well-reflected in the share values of major producers, notably ICI Pakistan.

Analysts are divided on the one per cent cut in the service charges on national saving schemes as leading among them ruled out the possibility of outflow of funds from the share business to them.

Plus signs, therefore, again dominated the list under the lead of Rafhan Maize and Wyeth Pakistan, up by Rs25 and Rs50 owing to shortage of the floating stock. They were followed by Attock Petroleum, Thal Corporation, Al-Ghazi Tractors, Treet Corporation, Pakistan Oilfields, Sanofi Aventis, Gillette Pakistan and Colgate Pakistan, up by Rs9 to Rs16.10.

Losers were led by Shezan International and Unilever Pakistan, off by Rs11.10 and Rs25 respectively. National Bank, Huffaz Pipes, Pakistan Engineering, Suzuki Motors, Atlas Honda, EFU Life and Artistic Denim followed them, off Rs3 to Rs10.

Trading volume soared to over half a billion shares at 502m as against previous 392m shares as gainers held a strong lead over the losers at 228 to 133, with 38 shares holding on to the last levels.

The most active list was topped by D.G. Khan Cement, which has been under pressure for the last couple of sessions, up by Rs2.65 at Rs120.40 on 46m shares followed by Fauji Cement, firm by Rs1.20 at Rs25.20 on 42m shares, Fauji Fertilizer Bin Qasim, steady by Rs1.35 at Rs39.95 on 40m shares, National Bank, off Rs3.20 at Rs233.05 on 34m shares, PTCL, higher by 60 paisa at Rs66.85 on 29m shares, Bank Alfalah, up by Rs2.05 at Rs84.95 and OGDC, higher by Rs1.45 at Rs125.80 on 20m shares.

Other actives included Pakistan Oilfields, up by Rs14.90 on 18m shares, Lucky Cement, higher by Rs2.20 on 26m shares and TRG Pakistan, firm by 55 paisa on 23m shares.

FORWARD COUNTER: Fauji Fertilizer Bin Qasim responded positively to its earnings and rose by Rs1.18 at Rs40.38 on 13m shares, its February contract also rose by Rs1.10 at Rs39.80 on 10m shares, PTCL, higher by 45 paisa at Rs67.95 on 12m shares and Lucky Cement, up by Rs2.08 at Rs100 on 9m shares. Others also rose on light turnover.

DEFAULTER COS: The activity on this counter was relatively slow in the absence of strong buying. Price changes were fractional but mostly on the higher side amid light turnover.

Suraj Ghee and Ghandhara Industries were leading among the gainers, up by Re1 and Rs2.25 at Rs17 and Rs64 respectively.

DIVIDEND: Pakistan Cables, interim bonus shares at the rate of 25 per cent.