May 9, 2006	Tuesday	Rabi-us-Sani 10, 1427

KARACHI, May 8: Stocks on Monday resumed trading on a higher note but failed to hold on to initial gains on some of the counters amid alternate bouts of buying and selling but on late short-covering finished higher.

Selective support figured prominently on leading oil, bank and auto sectors, which pushed the index higher, although broader market lacked normal trading interest and stayed on-balance weak.

The KSE 100-share index, however, staged a modest recovery as leading base shares came in for active short-covering at the lower levels and finished with an extended gain.

It ended the session up 89.08 points at 11,775.52 as compared to 11,686.44 as leading base shares, notably OGDC, PTCL, Pakistan Petroleum and PSO came in for strong buying and ended with smart gains.

The market recovery was again led by the oil, bank and cement shares as investors and leading bargain-hunters are not inclined to expand their share portfolios owing to financial risks involved going beyond them.

However, their erratic movements reflect investors are mostly playing on short-term basis and no one among them is in a mood to hold long positions on any of the counters.

“Buying oil and bank stocks at the dips and sell them at the rise in the same session without taking a risk of higher profit even in a rising market appears to be beyond the scope of a robust market,” analysts said.

As the dividend season is almost over, investors are in search of fresh stimulants to keep the market around the current levels and the general interest alive, they said, adding: “But the background news is flat at the moment and did not give any cue to future positive developments.”

“The new mode of share financing removing investment cap of Rs25 billion is still a month away and leading punters could not precisely decide whether or not to go for cheaper interest rates at this stage”.

Shell Pakistan and PSO, which has been under pressure for the last couple of weeks, came in for active support and finished with extended gains Rs16 and Rs26.05 followed by Arif Habib Securities, which was also quoted higher by Rs29.80.

Other leading gainers were led by Allied Bank, Muslim Insurance, Gatron Industries, Honda Atlas, Rafhan Bestfoods, Indus Motors, Gillette Pakistan, IGI Insurance, Suzuki Motors Millat Tractors, which posted gains ranging from Rs5.10 to Rs16.80.

Although broader market ruled weak, losses were mostly fractional barring Bata Pakistan and Atlas Honda, off Rs6.30 and Rs8.40 respectively followed by Artistic Denim, Ferozsons Lab, Pakistan Cables, Exide Pakistan and Bata Pakistan, off Rs4.05 to Rs6.30.

Trading volume was light owing to the absence of leading sellers, falling to 260m shares as compared to 308m shares at the last weekend. Losers maintained a fair lead over the gainers at 186 to 156, with 41 shares holding on to the last levels.

National Bank led the list of actives, unchanged at Rs281.20 on 46m shares, OGDC, up by 75 paisa at Rs161.35 on 29m shares, MCB, higher by Rs2.85 at Rs256.25 on 28m shares, PTCL, higher by Rs1.65 at Rs58.40 on 23m shares, Pakistan Petroleum, up by Rs3.35 at Rs285.05 on 17m shares and Union Bank, firm by Rs2.80 at Rs79.30 on 9m shares.

Other actives included D.G. Khan Cement, steady by 50 paisa on 15m shares, Pak PTA firm by 40 paisa on 14m shares and Bank of Punjab, up by Re1 on 9m shares.

DEFAULTER COS: Crescent Standard Bank again came in for stray selling and fell 25 paisa at Rs5.65 on 0.489m shares followed by Indus Polyester, up by 10 paisa at Rs6.20 on 0.134m shares. Others were fractionally traded amid low volumes.

DIVIDEND: PICIC Growth Fund, third interim at the rate of 20 per cent, PICIC Investment Fund, 3rd interim, 15 per cent.