March 17, 2006	Friday	Safar 16, 1427

KARACHI, March 16: Heavy buying in the oil and cement shares put the market back on the rails and analysts said it could well prove a takeoff point for its onward thrust to the pre-reaction index level. The KSE index recovered 296.29 points or three per cent and finished at the session’s high of 10,689.20.

The credit for driving bears out of the market largely goes to OGDC, which initiated the broad recovery taking other pivotals in its fold. Stocks, therefore, staged a broad recovery boosted by a judicious blend of both local and foreign buying at the attractively lower levels, notably on the blue chip counters.

The KSE 100-shares recovered 296.29 points or three per cent at 10,689.20, which incidentally was the session’s high, adding Rs75 billion to the market capital at Rs3,050 billion. Bulk of the rise was contributed by the OGDC, which has a weightage of 21 per cent and rose by Rs6.50.

“Its march to its pre-reaction level seems to have been initiated”, predicts a leading stock analyst. “The market being in an oversold position has no other option than to rebound”.

The index was close to its target of 12,000 points level after the bears struck and pushed it down by 2,000 points, although the benchmark of 10,000 points was sustained.

“The rise and the fall of the market is a typical phenomenon and no one could precisely predict about its onsetting, some sold positive and negative news notwithstanding”, brokers said, adding “But one thing is certain that it adds to the inherent strength of the market in the technical parlance”.

But the rally was terribly selective triggered by heavy buying in oil and cements shares, notably OGDC, National Bank, PTCL and D.G. Khan Cement. The oil shares recovered on reports of unchanged fortnightly prices, while cement shares reacted bullishly to reports of inauguration of Bahsha dam by President Musharraf.

The perception that cement consumption will rise after the construction work starts on the dam triggered a lot of buying in some leading cement producers under the lead of D.G. Khan and Lucky Cement.

Gainers led the list under the lead of Pakistan Oilfields and Siemens Pakistan, up Rs26.95 and Rs57.95, PSO, Jahangir Siddiqui Capital Markets, Attock Refinery, Engro Chemicals, Pakistan Refinery, Pakistan Petroleum, Attock Petroleum, National Refinery and Shell Pakistan, up by Rs7 to Rs22.10.

Losers included Gillette Pakistan and Wyeth Pakistan, off Rs13.75 and Rs103.50 respectively. Other prominent losers were led by Callmate Telips, Unilever Pakistan, Sanofi-Aventis, Pakistan Services, HinoPak and Clariant Pakistan, off Rs4.05 to Rs13.

Trading volume rose to 375m shares from the previous 295m shares as gainers maintained a strong lead over the losers at 212 to 122, with 27 shares holding on to the last levels.

The most active list was topped by D.G.Khan Cement, up by Rs5.50 at Rs146 on 58m shares followed by OGDC, higher by Rs6.50 at Rs137.40 on 53m shares, Lucky Cement, firm by Rs4.65 at Rs111 on 35m shares, National Bank, up by Rs3.60 at Rs266.50 on 29m shares, PTCL, up by Rs1.10 at Rs63 on 20m shares, Pakistan Oilfields, higher by Rs26.95 at Rs566.75 on 12m shares and Pakistan Petroleum, up by Rs11.40 at Rs251.20 also on 12m shares.

Other actives were led by Fauji Fertilizer Bin Qasim, up by Rs1.50 on 25m shares, Fauji Cement, steady by 65 paisa on 19m shares and Maple Leaf Cement, higher by 95 paisa on 11m shares.

FORWARD COUNTER: D.G. Khan Cement was also actively traded on the cleared list, up by Rs5.40 at Rs146.75 on 24m shares followed by OGDC, higher by Rs6.55 at Rs137.95 on 21m shares and National Bank, firm by Rs3 at Rs268 on 15m shares.

They were followed by Pakistan Oilfields, up by Rs27.05 at Rs568.25 on 14m shares and Lucky Cement, higher by Rs4.25 at Rs111.70 on 13m shares. Other leading shares also ended recovered.

DEFAULTER COS: Dandot Cement led the list of actives on this counter, which fell by 35 paisa at Rs11.80 on 0.137m shares. Others showed fractional either-way changes mostly on the higher side.

BOARD MEETINGS: Allied Bank on March 18, Premier Insurance, Pak-Gulf Leasing, on March 20, Pakistan Reinsurance Company, on March 21, Century Insurance, Highnoon Lab, Network Micro-Finance Bank, on March 22 and New Jubilee Insurance on March 24.