May 3, 2006	Wednesday	Rabi-us-Sani 4, 1427

KARACHI, May 2: The KSE 100-share index on Monday resumed its upward march to its peak level of 12,000 points boosted by active short-covering in the leading base shares under the lead of oil and bank shares and ended well above the last week’s lows.

It recovered a good part of about six per cent loss suffered during the last week and was marked up by 230.41 points or 2.03 per cent at 11,572.58 as compared to 11,341.17 at the fag-end of the previous week. Traded value also rose by Rs59.770bn to Rs3,258.338bn.

Indications are that it may rise to its pre-reaction level of 12,000 points plus although some of the basic positive fundamentals have by now undergone some of the major changes including the end of the dividend announcements.

After having suffered a massive loss of 665 points during the last week, stocks resumed trading on a firm note as investors were not inclined to miss the rising market both on technical grounds and on an attractive bait of capital followed by a grand technical rebound.

Some positive developments on the CFS issue, notably the central bank thinking on the lower ceiling rates was also considered a positive factor behind the run-up.

“But the heating of the political scenario worried investors as mood of the opposition leaders against the sitting government appears to be a bit aggressive,” some analysts said. “Its negative fall-out for the market may not be that positive and could take away some of the heat from the current buying euphoria.”

Although the national elections are a year away, the mood of some of the top leaders signals warning to the prospective investors to play safe after having taken the objective view of the developing political situation.

Oil, banks and cement shares played a dominant role to put the market back on the rails on the strength of higher earnings and the talk of capital appreciation in the coming weeks.

PTCL, which has dropped to two-year lowest level at Rs54.30 also joined the selective band of market trend-setters and finished partially recovered at Rs55.40, up Rs1.10 on 9m shares.

National Bank, which had dropped below its resistance level of Rs250 ahead of the announcement of its working results last week, performed credibly well and so did Pakistan Oilfields, Pakistan Petroleum, OGDC, PSO and Shell Pakistan aided by an increase of 2 to 7.5 per cent in the ex-depot prices of petroleum products.

National Bank’s first quarter results were said to be below the market expectations, the EPS being at Rs5.09, but its attractively lower level remained one of the aiding factors having put the market back on the rails.

Among the top gainers, Pakistan Oilfields and Unilever Pakistan were leading, up by Rs16.15 and 20, followed by Attock Petroleum, Adamjee Insurance, Jahangir Siddiqui Capital Markets, MCB, Shell Gas, Mari Gas and Arif Habib Securities, which posted gains ranging from Rs7.10 to 13.

Prominent losers included IGI Insurance and Lakson Tobacco, off Rs12.70 and 15.50 respectively. Others, which also showed modest to sharp decline were led by Fazal Textiles, Siemens Pakistan, Sapphire Fibre, Mustehkam Cement, PNSC and Indus Dyeing, off Rs4 to 5.

Trading volume did not expand in line with the rising market as investors were not inclined to sell after having purchased as much higher levels totalling 247m shares as gainers forced a comfortable lead over the losers at 186 to 149, with 29 shares holding on to the last levels.

The most active list was topped by D.G.Khan Cement, up Rs5.50 at Rs115.55 on 33m shares, OGDC, higher Rs4.40 at Rs161.30 on 31m shares, National Bank, up Rs10.50 at Rs266.50 on 25m shares, MCB, higher by Rs7.10 at Rs245.50 on 11m shares, Pakistan Petroleum, firm by Rs4.40 at Rs279.40 on 11m shares and Pakistan Oilfields, up Rs16.15 at Rs658.25 on 9m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, higher by Rs1.80 on 13m shares, Fauji Cement, up Rs1.15 on 10m shares, and Lucky Cement, higher by Rs5.45 on 10m shares.

FORWARD COUNTER: National Bank led the list of actives on this counter, up Rs10 at Rs268.55 on 13m shares, D.G.Khan Cement, higher by Rs5.52 at Rs116.20 on 11m shares, and OGDC, up Rs3.89 at Rs162.50 on 10m shares.

Pakistan Oilfields followed them, higher by Rs8.50 at Rs447 on 6m shares and Pakistan Petroleum, higher Rs4.20 at Rs282.20 on 6m shares.

DEFAULTER COS: Trading activity on this counter was relatively slow as investors remained busy in a rising ready market. Prices, however, showed fractional gains amid slow dealings.

Dandot Cement was an exception, which came in for fresh support and rose 75 paisa at Rs16 on 0.184m shares.

DIVIDEND: Honda Atlas Cars, bonus shares at the rate of 70 per cent. Its share responded to the news and rose by Rs6.15 at Rs129.15, Mybank, interim five per cent.