May 20, 2006	Saturday	Rabi-us-Sani 21, 1427

KARACHI, May 19: Share values on the Karachi Stock Exchange on Friday staged a partial recovery but analysts predict it could well prove a takeoff point for their upward thrust to their pre-reaction levels by the next trading week.

The fact that the KSE 100- share index finished at the session’s high on active short-covering in the oil, bank and cement shares signals that the worst may be over and the market would resume normal trading next week aided by Central Board of Revenue’s clarification that there is no plan to tax capital gains.

CBR clarifications more than twice for the second consecutive day about the tax on the share business or an increase in the existing ones must allay investors’ fears about the rumoured tax. Some of them are already back in the arena as was reflected by a robust rally, brokers said.

The KSE 100-share index, which had dropped by 407 points a day earlier on selling triggered by rumours of tax on capital gains in the new federal budget was back on the recovery track, although finished with clipped gains owing to weekend considerations.

The net rise over the session was 173.43 points at 10,861.31 as compared to 10,687.86 a day earlier, reflecting the strength of the leading base shares.

An interim cash dividend of 30 per cent by the new management of PTCL after Mohamed Abdulla Ali Bamakhrama of Etisalat took over as its president and chief executive officer from Junaid I Khan was on the higher side of the market expectations but it came at a time when the market was under pressure. However, its share value rose 75 paisa at Rs51.25.

All the leading base shares, notably OGDC, National Bank, Pakistan Petroleum, PTCL, MCB and some others came in for strong covering purchases at the lower levels, some of them finishing with limit gains.

Analysts said rumour mongers may remain active in the sessions prior to the budget by early next month after spreading negative rumours about the future of the share business in the post-budget sessions but investors should not be worried over the issue.

The current attractively lower levels reached by all the leading shares ensure handsome capital gains massively mauled investors during the last couple of sessions should follow the lead of big ones to recoup losses, they added.

“Next week could well be of bulls as leading among them led by financial institutions have already chalked out a strategy to initiate pre-budget buying euphoria,” some others said.

The perception that the market is following the general downward trend on the global market does not fit in typical Pakistani market conditions as it is generally governed by the whims of some big operators, they added.

Leading gainers were led by Unilever Pakistan and Wyeth Pakistan, up Rs14 and 75, while losers included Colgate Pakistan and Grays of Cambridge, off Rs16 and 22, respectively.

Trading fell to 207m shares from the previous 236m shares as gainers held a modest lead over the losers at 150 to 124, with 29 shares holding on to the last levels.

OGDC topped the list of actives, up Rs3.80 at Rs147.45 on 24m shares, followed by National Bank, higher by Rs1.75 at Rs246.75 on 23m shares, Pakistan Petroleum, up Rs7 at Rs250.00 on 20m shares, D.G.Khan Cement, steady by five paisa at Rs108 on 18m shares, PTCL, firm by 75 paisa at Rs51.25 on 17m shares and Pakistan Oilfields, higher Rs8.70 on 6m shares.

Other actives were led by Fauji Cement, steady 20 paisa on 7m shares, Lucky Cement, up 90 paisa also on 7m shares, and Bank of Punjab, higher by Rs1.45 on 5m shares.

FORWARD COUNTER: National Bank led the list of actives on the cleared list and was quoted higher by Rs1.95 at Rs247.50 on 22m shares followed by Pakistan Petroleum, higher by 6.90 at Rs250 on 16m shares, and OGDC, firm by 3.55 at Rs147.60 on 14m shares.

MCB followed them, higher by Rs6.90 at Rs235.50 on 12m shares and D.G.Khan Cement, steady by 20 paisa at Rs108.50 on 10m shares.

DEFAULTER COS: Crescent Standard Bank was again actively traded, up 25 paisa at Rs4.10 on 0.364m shares, followed by Kashmir Polytex, off 85 paisa at Rs3.15 on 0.189m shares. Others showed fractional price changes.