March 4, 2006	Saturday	Safar 3, 1427

KARACHI, March 3: Stocks were back on the rails as the weekend session witnessed a good bit of covering purchases on the selected counters ahead of President Bush’s visit. The KSE 100-share index recovered 33.68 points at 11,415.29 and added Rs10.408bn to the market capital at Rs3,250.00bn.

But owing to country-wide strike and weekend considerations, the activity lacked aggressiveness associated with the high-profile visit of the US president to its close ally of war on terrorism, some analysts said.

The KSE 100-share index recovered in part the overnight loss on active short-covering in leading base shares but the activity remained slow owing to complete strike in the city as a protest against the blasphemous cartoons.

It managed to finish with modest recovery, up by 33.68 points at 11,415.29 as compared to 11,473.99 a day earlier as some of the leading base shares ended higher barring National Bank, which came in for renewed selling. The index touched the lowest and highest at 11,358.16 and 11,451.14 respectively.

Despite a country-wide strike, having a negative fallout on the trade and industrial activities, the stock market managed to put up a better show on active short-covering at the overnight lower levels, weekend considerations notwithstanding.

“The market appears to be preparing to welcome Mr Bush amid rumours of some packages relating to trade and industry and portfolio investment”, some analysts said, adding “but the positive impact of his visit is expected to be visible by the next week”.

Some others say in the backdrop of his deal with India on the civilian nuclear energy any package short of strategic parlance may not boost the trading activity.

As far as trade and industry is concerned, the US is already a leading partner of Pakistan, notably on the export front, they said and added “any new deals sans war on terrorism may not enthuse investors as did their Indian stock traders”.

The next week could be very crucial for future market trend as leading brokers and analysts are awaiting the positive impact of Bush visit on the stock market, they said.

On the corporate front, final cash dividend of 30 per cent by ICI Pakistan, which pushed the total to 50 per cent as it has already paid an interim dividend of 20 per cent. Its share value fell sharply lower in post-dividend trading as investors were also expecting bonus shares.

Meanwhile, the impact of withdrawal of gas subsidy from the fertilizer units and fortnightly oil pricing by the oil marketing companies and entrusted to the Oil and Gas Regulatory Authority being two major developments, on the share business will be known by the next week.

Shell Pakistan and Wyeth Pakistan led the list of gainers, up by Rs31 and Rs40, followed by Jahangir Siddiqui & Co, Atlas Honda, Indus Motors, Mustehkam Cement, Unilever Pakistan, Pakistan Cables, Mari Gas and several others, up by Rs6.50 to Rs20.

Noon Pakistan and Artistic Denim fell by Rs10 and Rs10.70. Other prominent losers included National Refinery, Callmate Telips, Engro Chemical and National Bank, off Rs5.50 to Rs6.75.

Trading volume fell further to 333m shares from the overnight’s 377m shares as gainers forced a modest lead over the gainers at 166 to 140, with 33 shares holding on to the last levels.

D.G. Khan Cement led the list of actives, up by Rs5.25 at Rs154.85 on 68m shares followed by Fauji Fertilizer Bin Qasim, firm by 55 paisa at Rs43.90 on 44m shares, Lucky Cement, higher by Rs5.45 at Rs114.70 on 37m shares, National Bank, off Rs6.75 at Rs308.45 on 29m shares, OGDC, steady by five paisa at Rs145.05 on 20m shares, MCB, up by Rs2.20 at Rs252.40 on 8m shares and Pakistan Oilfields, up by Rs3.50 at Rs597.50 on 9m shares.

Other actives included Sui Southern Gas, higher by Rs1.80 on 13m shares, Fauji Cement, up by 85 paisa on 10m shares and Maple Leaf Cement, firm by Rs44.35 on 9m shares.

FORWARD COUNTER: National Bank remained under pressure for the third session in a row and was further marked down by Rs7.70 at Rs313.80 on 19m shares followed by D.G. Khan Cement, up by Rs5.45 at Rs157.45 on 14m shares and Lucky Cement, higher by Rs5.55 at Rs116.70 on fresh buying aided by higher exports.

Other actives were led by Fauji Fertilizer Bin Qasim, up by 65 paisa at Rs44.50 on 10m shares and Pakistan Petroleum, easy five paisa at Rs296.95m on 6m shares.

DIVIDEND: Bank of Khyber, bonus shares at the rate of 21.924 per cent, Gillette Pakistan, MyBank and KASB Bank, both nil.