May 23, 2006	Tuesday	Rabi-us-Sani 24, 1427

KARACHI, May 22: The stock market on Monday maintained an uppish leaning on active follow-up support on selected counters, but the activity remained terribly insipid in the absence of bargain-hunting and speculative buying.

The pre-budget lull might not have sound reasons behind it, analysts said, adding that investors are reluctant to go all-out in an oversold market at the current lower levels having no clear vision about the post-budget economic scenario. Most of them ignored the phenomenon of quick capital gains.

The KSE 100-share index rose to 10,930.55, up 69.24 points after having touched the session’s lowest and highest at 10,759.52 and 10,957.00, respectively. The breakthrough was not decisive, as some of the leading base shares in the oil sector were still under pressure.

Leading bank shares, notably National Bank, MCB and Bank of Punjab, attracted active support at the lower levels and recovered from the previous lows and so did cement shares under the lead of DG Khan and Lucky Cement.

Although most of the tax-related investor concerns were allayed by Islamabad discounting last week’s rumours, leading operators were still in two minds about the future share business outlook, analysts said.

Opinions are divided over the pre-budget share business outlook. Some analysts said both leading financial institutions and investors will play safe and may not take long positions on any of the counters even at the attractively lower levels.

“Any pre-budget positive leak could trigger buy-stops all-round at the current levels,” some others claim, adding: “The pre-budget pause always leads to a robust rally irrespective of negative background news.”

There is a loud whispering in the market that hesitancy of the leading oil shares, notably OGDC, Pakistan Petroleum and Pakistan Oilfields, is keeping the market in a low profile amid volatile performance,” most brokers believe.

“Locals are awaiting the advent of foreign buying on the oil counter any time irrespective of fears about the budgetary taxation proposals, predicts a broker. “This could be the beginning of market’s renewed onslaught to its pre-reaction level.”

Leading gainers were led by IGI Insurance and Pak-Suzuki, up Rs14.30 and Rs15, respectively, followed by Allied Bank, National Bank, Arif Habib Securities, MCB, Thal, Premier Sugar, Engro Chemical and Grays of Cambridge, which posted gains ranging from Rs5.10 to Rs9.95.

Losers were led by Unilever Pakistan and Wyeth Pakistan, off Rs39 and Rs80, respectively. Other leading losers included Central Insurance, Attock Refinery, HinoPak, National Refinery, Artistic Denim, Gillette Pakistan, AKD Securities and Pakistan Services, which suffered fall ranging from Rs5 to Rs15.

Trading volume rose to 236m shares from the previous 207m shares as gainers held a modest lead over losers at 164 to 156, with 37 shares holding on to the last levels.

National Bank topped the list of actives, up Rs5.70 at Rs252.45 on 32m shares followed by DG Khan Cement, higher by Rs4.45 at Rs112.45 on 26m shares, OGDC, easy 45 paisa at Rs145 on 23m shares, MCB, higher by Rs8.50 at Rs243.50 on 18m shares, Lucky Cement, up Rs5.10 at Rs118.05 on 16m shares, Pakistan Petroleum, off Rs1.25 at Rs248.75 on 13m shares and PTCL, lower by 10 paisa at Rs51.15 on 9m shares.

Other actives were led by Fauji Cement, up 75 paisa on 11m shares, Union Bank, firm by 50 paisa on 9m shares and Fauji Fertiliser Bin Qasim, up 95 paisa on 6m shares.

National Bank came in for strong support on this counter also and was quoted higher by Rs5.20 at Rs252.70 on 14m shares, followed by OGDC, lower 15 paisa at Rs147.45 on 10m shares, and DG Khan Cement, higher by Rs4 at Rs112.50 on 10m shares.

The notable feature was that trading also resumed in the newcomer June deliveries side by side the maturing May contracts but their debut was mixed.

Lucky Cement followed them, higher by Rs4.60 at Rs117.50 on 9m shares and Pakistan Petroleum, lower Rs2.25 at Rs247.75 also on 9m shares.

DEFAULTER COS: Trading activity on this counter was slow as investors remained busy on the forward counter. Crescent-Standard Bank was, however, an exception, which came in for active short-covering at the lower level and rose by 50 paisa at Rs4.60 on 0.521m shares.

BOARD MEETINGS: Mirpurkhas Sugar Mills on May 24; Chashma Sugar, Premier Sugar, Frontier Sugar on May 25; Thal Industries on May 26; Noon Sugar, Baba Farid Sugar and Fecto Sugar on May 27.