June 10, 2006	Saturday	Jumadi-ul-Awwal 13, 1427

KARACHI, June 9: Stocks on Friday recovered from the overnight lows on active short-covering at the lower levels aided by reports that the SECP intended to investigate the recent market crash and would punish those behind the manipulation.

Another positive development, which seems to have lured investors back in the market, was the KSE request seeking withdrawal of the increase in the CVT and extension of the exemption on capital gains tax, which will end next June, for another five years.

Leading financial institutions are back in the market and indications are that they are in for a big catch at the current lower levels by way of portfolio adjustments and that could give the much-needed lead to other investors including some genuine ones. But the year-end buying is away by about two weeks, analysts said.Although the KSE welcomed the budgetary proposals as was reflected by the positive market reaction in the post-budget session, but some of speculators did not allow the consolidation forces to play their due role and indulged in panic-selling to unnerve small investors. It was the strength of the leading base shares, notably OGDC and PTCL, which enabled it to hold on to some of the initial gains, while other leading base shares ran into weekend selling later.

The KSE 100-share index though finished below the session’s highs at 9,849.60, signaling that the worst is over and the next week could well be prove a take-off point. The index finally ended up with net gain of 74.79 points as the weekend selling pushed leading base shares modestly lower. At one stage, it touched the benchmark of 10,000 at 10,014.00 points.

The SECP probe into market manipulation, which eroded over Rs200bn from the market capital or 7.32pc from the index during the last two sessions, could restore needed credibility to the share business and weekend rally reflected that investors had already found cue to market-related good news.

Most of the leading shares, notably oil giants and blue chips in the bank and cement sectors during the recent sell-off had fallen beyond their mandate pushing the index below the crucial level of 10,000 points. The advent of institutional support at the prevailing lows could lead to a sustained bull-run, brokers said.

Leading gainers were led by Shell Pakistan and Millat Tractors, which rose by Rs9 and Rs6.90 followed by Jahangir Siddiqui & Co, Thal Industries, PSO, Sui Northern, Clover Pakistan and Pakistan Oilfields, up by Rs5 to Rs6.35.

Sanofi-Avenstis, IGI Insurance, Dawood Hercules and Nestle Pakistan were leading among the losers, off Rs13 to Rs37.15. Other prominent losers included Adamjee Insurance, Attock Refinery, Pakistan Services, Clariant Pakistan and Shell Gas, off Rs4.20 to Rs15.45.

Trading volume showed a modest rise at 146m shares as compared to 122m shares a day earlier as gainers forced a modest lead over the losers at 139 to 113, with 40 shares holding on to the last levels.

National Bank topped the list of actives, easy by 45 paisa at Rs196.95, the day’s highest was hit at Rs205.20, followed by D.G. Khan Cement, off Rs3.25 at Rs87.95 on 13m shares, Pakistan Petroleum, lower Rs1.85 at Rs210, also on 13m shares, MCB, off Rs5.20 at Rs189.10 on 9m shares, OGDC, up by Rs2.25 at Rs130.60 on 7m shares, PTCL, higher by Rs1.85 at Rs47 on 5m shares.

Other actives included Fauji Fertiliser Bin Qasim, lower 25 paisa on 6m shares, Fauji Cement, steady five paisa also on 6m shares and Lucky Cement, up 90 paisa on 5m shares.

FORWARD COUNTER: National Bank also came in for late modest selling and fell by 30 paisa at Rs198.50 on 24m shares followed by OGDC, up by 40 paisa at Rs.129.70 on 20m shares, Pakistan Petroleum, off Rs2.80 at Rs210.90 on 11m shares.

Pakistan Oilfields followed them, higher by Rs5.35 at Rs344.50 on 10m shares and D.G. Khan Cement, off Rs3.45 at Rs88 on 9m shares.

DEFAULTER COS: Trading on this counter remained dull owing to weekend considerations and the absence of bargain-hunters. Barring modest selling in Crescent Standard Bank, which was marked down by 35 paisa at Rs4.50 on 0.138m shares, others showed fractional changes amid slow deals.