May 31, 2006	Wednesday	Jumadi-ul-Awwal 3, 1427

KARACHI, May 30: Share market on Tuesday stayed weak but finished well above the session’s lows signalling that the worst may be over as consolidation forces have assumed the role of financial wound heelers.

The KSE index finished with a fresh loss of 128.87 points at 10,118.73 after at one stage having fallen by 439 points on rumours of increase in Capital Value Tax but staged a grand rebound later in the session.

Strong short-covering in most of the pivotals after they again fell below their ceiling rates showed that the bulls were back under the lead of financial institutions as no one among them could miss an attractive bait of capital gains.

The initial sell-off was attributed to rumours about an increase in the CVT in the upcoming budget triggering renewed panic-selling by some of the leading bears. Most of the index-heavy shares notably OGDC, National Bank, PTCL and Pakistan Oilfields faced lower circuit breakers to forestall further fall but late buying allowed them to finish with modest gains.

After having breached through the barrier of 10,000 points at one stage, the KSE 100-share index managed to finish with a fresh fall of 128.87 points at 10,118.73 as compared to 10,247.60 a day earlier.

Leading bulls led by institutional traders made strong showing after mid-session and covered positions in most of the leading shares at the day’s lowest levels. National Bank, for instance, at one stage down by Rs18.30 at Rs207.50 but managed to finish partially recovered, although well below the day’s peak level of Rs225.50.

“Budget-related rumours may continue to find their way into the share market during the next couple of sessions, indications are that bears may not be in a position to exploit them after the re-entry of bulls under the lead of financial institutions,” analysts said.

“I don’t rule out the possibility of revival of foreign buying in the oil giants at the current levels and that could be beginning of market’s upward thrust”, predicts a leading analyst.

On technical grounds alone, the current sell-off has reached a saturation point and there is no reason to believe that bears could extend their rule, he adds.

Unlike the previous sessions, revival of short-covering and a good bit of bargain-hunting reflects that a long-awaited bull run is around.

Among the gainers, IGI Insurance and Nestle Pakistan were leading, up by Rs19.15 and Rs28.35, followed by Jahangir Siddiqui Capital Markets, Attock Cement, Attock Petroleum, Ghani Glass, Pakistan Refinery and Grays of Cambridge, up by Rs3.20 to Rs12.30.

Prominent losers were led by Lakson Tobacco and National Bank, off Rs15 and Rs15.50. Arif Habib Securities, Pak-Suzuki Motors, Packages, Gillette Pakistan, Treet Corporation, Attock Refinery, Pakistan Resource Co, Pakistan Engineering, and MCB, off Rs5.40 to Rs10.70.

Trading volume showed a modest increase at 216m shares from the previous 161m shares as gainers cut short strong lead of losers at 108 to 191, with 28 shares holding on to the last levels.

OGDC again led the list of actives, lower Rs1.20 at Rs135.35 on 38m shares followed by National Bank, off Rs15.50 at Rs215 on 26m shares, Pakistan Petroleum, up by 45 paisa at Rs232.75 on 17m shares, D.G.Khan Cement, lower Rs4.80 at Rs95.50 on 14m shares, PTCL, easy 80 paisa at Rs44.80 on 14m shares Lucky Cement, up by 20 paisa at Rs103 on 11m shares, Pakistan Oilfields, lower Rs3.75 at Rs365.25 on 9m shares.

Other actives included Fauji Fertiliser Bin Qasim, up by 50 paisa on 9m shares followed by Bank of Punjab, higher 95 paisa also on 9m shares and Fauji Cement, lower 40 paisa on 8m shares.

FORWARD COUNTER: National Bank remained under pressure on the cleared list also and fell by Rs16.35 at Rs217 on 20m shares, followed by OGDC, lower Rs1.95 at Rs135 on 14m shares and Pakistan Petroleum, lower by Rs1.20 at Rs234.90 on 13m shares.

Lucky Cement followed them, up by 70 paisa at Rs104.85 on 10m shares and Pakistan Oilfields, easy Rs4.50 at Rs366.10 on 8m shares. Others were modestly traded.

DEFAULTER COS: Pangrio Sugar came in for active selling at the higher levels and fell by 45 paisa at Rs8.90 on 0.331m shares followed by Crescent Standard Bank, easy 10 paisa at Rs4.10 on 0.154m shares. Others were traded modestly amid slow demand.