March 15, 2006	Wednesday	Safar 14, 1427

KARACHI, March 14: Stocks on Tuesday recovered from the overnight lows as investors were back in the market and covered positions at the lower levels but there was no matching selling from any quarter. The KSE index recovered 340 points or 3.37 per cent adding Rs85 billion to the market capital.

The recovery was due late last week but a spate of negative rumours originating from a number of quarters did not allow consolidation forces to play their due role and speculative forces have a field day.

After having shed 1,500 points in the last week’s sell-off, the KSE 100-share index reversed the trend aided by active institutional and foreign buying on the leading base shares at the attractively lower levels.

It finished the session with a sharp gain of 339.93 points or 3.37 per cent at 10,433.17 points adding Rs85 billion to the market capital at Rs2,982bn. At one stage it breached through the barrier of 10,000-point at 9,916.65 but late-buying allowed it close sharply higher.

An idea of buying may well be had from the fact that the leading base shares, notably OGDC, National Bank, Pakistan Petroleum and Pakistan Oilfields ended faced upper locks and with smart rallies.

Although the market is still to show bullish reaction to some of the terribly morale boosting news including new oil and gas finds in NWFP and the management change of the PTCL after transferring 26 per cent controlling shares to Etisalat and an ambitious privatization programme ahead, echoes of last week’s panic were still afresh in investor minds and most of them played safe.

The market will take some more days to restore badly shaken investor industry if the current tempo of recovery is maintained in the coming sessions also.

“The worst may be over as the market has already undergone a needed technical correction in a highly overbought position,” some analysts feel “now it is in an oversold position and could attract any amount of short-covering at the lower levels”.

The opening was, however, weak owing to spillover selling from the overnight fall but after mid-session leading financial and institutional investors were back in the market and covered positions at the lower levels on oil, bank and other sectors.

The next few sessions could be crucial for the future market direction but most analysts predict the sailing may remain smooth in the backdrop of attractively lower levels reached by most of the trend-setters.

Plus signs forced a modest edge over the minus ones after a lean week, major gainers among them being Pakistan Oilfields and National Refinery, up by Rs15.95 and Rs24.90. Other leading gainers included Jahangir Siddiqui & Co, Thal, Engro Chemical, National Bank, Attock Petroleum, Shell Pakistan, Pakistan Petroleum, Packages and Nestle Pakistan, up by Rs9 to Rs15.

Prominent losers were led by Dawood Hercules and Siemens Pakistan, off Rs22 and Rs61 respectively followed by Treet Corporation, Mustehkam Cement, EFU Life, Pakistan Engineering, HinoPak Motors on post-final dividend selling, Central Insurance and Grays of Cambridge, off Rs5.30 to Rs12.80.

Trading volume did expand in line with buying orders as investors held on to their positions anticipating further increase in prices and totalled 274m shares as compared to 227m shares a day earlier. Gainers outpaced lowers by 186 to 122, with 30 shares holding on to the last levels.

National Bank topped the list of actives, up by Rs12.50 at Rs273.30 on 36m shares, OGDC, higher by Rs6.20 at Rs131.15 on 33m shares, D.G. Khan Cement, firm by Rs4.45 at Rs134.90 on 26m shares, PTCL, up by Rs2.55 at Rs61.95 on 22m shares, Pakistan Petroleum, higher by Rs11.75 at Rs247.40 on 12m shares and Pakistan Oilfields, up by Rs24.90 at Rs523.80 on 8m shares.

Other actives included Fauji Fertilizer Bin Qasim, up by Rs1.65 on 14m shares, Lucky Cement, higher by Rs4.80 on 12m shares, Fauji Cement, firm 75 paisa on 10m shares and KESC, up by 60 paisa on 8m shares.

FORWARD COUNTER: National Bank also led the active list on this counter on sympathetic buying. It recovered Rs12.25 at Rs274.20 on 24m shares followed by OGDC, up by Rs6.25 at Rs131.95 on 15m shares and Pakistan Petroleum, firm by Rs10.25 at Rs249.20 on 14m shares.

Pakistan Oilfields followed them, higher by Rs24.10 at Rs532 on 13m shares and D.G. Khan Cement, up by Rs3.85 at Rs135.40 on 10m shares.

DEFAULTER COS: Share values also rose on this counter on stray support but there were no major deals, barring Dandot Cement, which was quoted higher by 70 paisa at Rs11.50 on 0.163m shares.

DIVIDEND: HinoPak Motors, final cash 60 per cent, Ahmed Hassan Textiles, right shares at the rate of 15 per cent at a premium of Rs5 each.