July 05, 2006	Wednesday	Jumadi-ul-Sani 8, 1427

KARACHI, July 4: Stocks on Tuesday were back on the rails aided by strong buying in the oil and bank shares but finished well below the session’s highs on late-selling in some of the pivotals. The KSE index recovered 226 points or 2.35pc at 9,829.40.

The reaction was apparently caused by the perception that the developing scenario on the political front in the backdrop of rigid positions taken by the contenders of power could well mean any thing to the highly sensitive stock share market in the coming weeks.But a leading analyst linked the early nervousness to added cost in stock trading in the form of raised Capital Value Tax and withholding tax, although bulls cut short their visit after staging a quick comeback.

After having touched the session’s high of 9,912.14, the KSE 100-share index finally finished partly reacted on late selling at 9,829.40 as compared to previous 9,603.65

The other morale booster factor was reports that the management of MCB Bank will shortly float its Global Depository Receipts (GDR) on the London Stock Exchange to raise fresh equity. Its share value responded bullishly to the news as investors picked up its share at the overnight level. It was quoted higher by Rs9.45 at Rs213.45.

Analysts said the management of the MCB Bank seems to have taken initiative well ahead of the government which is also planning to float GDRs of the Oil and Gas Development Corporation (OGDCL) on the London Stock Exchange possibly during the current fiscal.

However, volatility of the market did worry general investors who could not precisely plan for long-term investment as massive either-way movements including lower and upper locks were said to be beyond their absorbing capacity.

Dawood Hercules and Unilever Pakistan were leading among the gainers, up by Rs14.05 and Rs24 followed by MCB, National Bank, IGI Insurance, Attock Petroleum, Shell Pakistan, Pakistan Petroleum and Packages, up Rs8 to Rs10.95.

Pakistan Hotels and National Refinery were leading among the losers, off Rs9.85 and Rs10. Other notable losers were Premier Sugar, United Sugar, Jahangir Siddiqui & Co and its Capital Market Fund, Central Insurance and Pakistan Hotels, off Rs4.95 to Rs9.85.

Trading volume showed a modest rise at 195m shares as compared to 122m shares a day earlier as gainers held a strong lead over the losers at 162 to 104, with 32 shares holding on to the last levels.

OGDC topped the list of actives, up by Rs3.05 at Rs133 on 42m shares followed by MCB, higher by Rs9.45 at Rs213.45 on 18m shares, National Bank, up by Rs10.30 at Rs216.30 on 17m shares, D.G. Khan Cement, firm by Rs1.35 at Rs86.85 on 15m shares, Pakistan Oilfields, higher by Rs6.10 at Rs324 on 13m shares and Pakistan Petroleum, up by Rs10.10 at Rs212.20 on 11m shares.

Other actives were led by Bank of Punjab, up by Rs4 on 9m shares followed by Fauji Cement, steady 20 paisa on 8m shares and Nishat Mills, easy 10 paisa on 7m shares.

FORWARD COUNTER: OGDC was also actively traded on the cleared list in sympathy with its counterpart in the ready section, up by Rs2.25 at Rs133.35 on 9m shares, MCB, higher by Rs9.50 at Rs215 on 6m shares and National Bank, higher Rs10.40 at Rs218.40 on 6m shares.

Pakistan Oilfields followed them, higher by Rs5.90 at Rs327 on 6m shares and Pakistan Petroleum, up by Rs8.50 at Rs213.50 on 5m shares.

DEFAULTER COS: Mixed trend was again witnessed on this counter where Indus Polyester came in for active support and rose by 45 paisa at Rs5.10 on 0.110m shares, while Hakim Textiles, fell by 50 paisa at Rs0.75 on 0.134m shares. Others were modestly traded on light turnover.

BOARD MEETINGS: Artistic Denim on July 5, United Money Market Fund, United Growth Income Fund, on July 8 and Allied Bank on July 10.