March 2, 2006	Thursday	Safar 1, 1427

KARACHI, March 1: Stocks on Wednesday managed to finish partially recovered from the initial lows on late short-covering in the leading base shares aided by reports of smooth settlement of forward positions allaying fears of a default by some of the investors.

The notable feature was that the KSE 100-share index finished fully recovered from the initial low, sans OGDC and Pakistan Oilfields being the major weight holders in it.

An idea of index’s massive either-way movement may well be had from the fact that it touched the session’s high at 11,605.84 and the low at 11,132.54, showing a rise and fall of 473.30 points at one stage.

However, later covering purchases in some of the leading base shares it managed to finish with a modest rise of 17.72 points at 11,473.99 as compared to 11,456.27 a day earlier despite the weakness of OGDC and Pakistan Oilfields.

Analysts attributed the market’s uneven performance to some problems on the forward counters in relation to settlement of outstanding positions of over Rs10 billion in the recently rung off February contract.

But once the green signal about the settlement issue reached in the market punters re-entered and made active short-covering in the leading base shares pushing it up from the early lows, they said.

“Investors appear to be a bit jittery over the index’s ability to hold on to the level of 11,600 points,” brokers said, adding “the talk of 12,000 point is still relevant and not an elusive goal.”

Some of the best corporate news including from ICI Pakistan and some others is still due and could allow the market to consolidate on its current gains both on genuine and speculative buying, they added.

“Bush factor is still to manifest itself in the stream of positive news possibly when he lands in Islamabad for a day’s visit,” they said, adding “that factor could push the index to its next target”.

Although the index managed to finish modestly higher on the strength of PTCL and National Bank, the broader market stayed weak in the absence of strong buying.

Minus signs, therefore, dominated the list, although some of the leading shares, notably Nestle Pakistan and Dawood Hercules managed to finish higher by Rs20 and Rs20.70. They were followed by Indus Dyeing, D.G. Khan Cement, PNSC, Associated Industries, Arif Habib Securities and Engro Chemical, which posted gains ranging from Rs4 to Rs9.20.

Treet Corporation and Siemens Pakistan fell by Rs14.55 and Rs59.75 respectively were leading among the losers followed by Shell Gas, Mari Gas, Attock Petroleum, Shell Pakistan, Pakistan Oilfields, Millat Tractors, MCB, Adamjee Insurance ICI Pakistan and Artistic Denim, off Rs6 to Rs11.05.

Trading volume rose to 596m shares from the previous 419m shares as losers held a fair lead over the gainers at 201 to 151, with 40 shares holding on to the last levels.

D.G. Khan Cement topped the list of most actives, up by Rs4.30 at Rs151.40 on 105m shares followed by OGDC, lower 45 paisa at Rs146.45 on 69m shares, Fauji Fertilizer Bin Qasim, up by Rs1.95 at Rs41.65 on 52m shares, National Bank, up by 80 paisa at Rs331 on 49m shares, MCB, off Rs6.30 at Rs254.70 on 26m shares and PTCL, higher by 65 paisa at Rs65 on 22m shares.

Other actives included Lucky Cement, up by 45 paisa on 30m shares, Pak PTA, on five per cent cash dividend, higher by Re1 on 27m shares, Nishat Mills, up by 70 paisa on 22m shares and Pakistan Oilfields, off Rs9.85 on 18m shares.

FORWARD COUNTER: Pakistan Petroleum again led the list of actives, higher by 40 paisa at Rs303.40 on 24m shares followed by National Bank, up Rs2 at Rs338.40 on 23m shares and D.G. Khan Cement, higher by Rs4.10 at Rs154.50 on 19m shares.

Others were led by OGDC, lower by Rs1.10 at Rs149.10 on 16m shares and Fauji Fertilizer Bin Qasim, up by Rs2 at Rs42.40 on 14m shares. Some others also rose under the lead of Engro Chemical amid light volume.

DEFAULTER COS: Quice Foods remained in strong demand for the last three consecutive sessions apparently on reports of management change and rose further higher by 65 paisa at Rs7.90 on 0.856m shares followed by Dandot Cement, lower 15 paisa at Rs11.35 on 0.155m shares. Others were modestly traded amid fractional price changes.

DIVIDEND: Pakistan PTA, cash five per cent, Suhail Jute, interim five per cent and Wah Nobel Chemicals, bonus shares at the rate of 20 per cent.