July 12, 2006	Wednesday	Jumadi-ul-Sani 15, 1427

KARACHI, July 11: Stocks on Tuesday staged a snap rally boosted by active short-covering in leading oil, bank and cement shares, but the underlying sentiment continues to be terribly nervous owing to ongoing probe on the market crash of March 2005.

Analysts are, however, divided over the near-term direction of the market. Some say reports of higher earnings by the cement and bank shares could keep investors in an optimistic mood, while others fear the crash probe could take heat out of the market, as negative reports about the findings would continue to pour in and in turn will destabilise any snap run-up.

The KSE 100-share index recovered 151.46 points or 1.59 per cent at 9,655.93 as compared to 9,504.47 a day earlier, as leading base shares resisted fresh fall.

National Bank, MCB, Pakistan Petroleum, OGDC, Pakistan Oilfields, DG Khan Cement and some other low-priced shares came in for covering purchases and put the market back on the rails owing to their massive weightage in the index.

“The snap rally appears to be inspired as it remained confined to a half dozen market trend-setters and failed to assume broad-based proportions,” analysts said, adding: “The market may not be the same as it was during the pre-probe sessions for obvious reasons, notably the investor inhibitions.”

The selective run-up appeared to be pretty deceptive, a leading analyst warned. “Investors should think twice before riding the bandwagon.”

The market is expected to take quite sometime before it reacts to its oversold position but much will depend on the news from the probe committee and its findings.

But trading volume failed to keep pace with the buying offers, as sellers were reluctant to sell their stocks purchased at the much higher rates.

Advancing shares managed to force a comfortable lead over the losers under the lead of National Refinery and Arif Habib Securities, up Rs10 and Rs20, respectively, followed by Pakistan Petroleum, Pakistan Oilfields, EFU Life, National Bank and MCB, up by Rs4.40 to Rs9.90.

Artistic Denim and Pakistan Cables were leading among the losers, which fell by Rs6.85 and Rs9.25. Other notable losers included Bolan Casting, Pakistan Hotels, Security Papers and Pak-Suzuki Motors, off by Rs3 to Rs5.Trading volume showed modest rise at 131m shares from the previous 128m shares as gainers topped losers by 159 to 128, with 30 shares holding on to the last levels.

National Bank came in for active support at the overnight lows and rose by Rs8.55 at Rs223.80 on 20m shares, followed by DG Khan Cement, firm by Rs2.95 at Rs88.45 on 15m shares, OGDC, up Rs1.45 at Rs125.10 on 12m shares, MCB, higher by Rs9.90 at Rs217.50 on 11m shares, Bank of Punjab, steady by Rs2.15 at Rs83.15 on 6m shares, Pakistan Petroleum, higher by Rs2.40 at Rs205.25 also on 6m shares.

Other actives included Fauji Cement, up 65 paisa on 8m shares, Lucky Cement, higher by Rs2.05 also on 8m shares, and TRG Pakistan (right shares), firm by five paisa at Rs0.15 on 4m shares.

FORWARD COUNTER: National Bank also remained in strong demand on the forward counter and led the list of actives, up Rs8.35 on 7m shares, MCB, higher by Rs9.75 at Rs218.75 on 4m shares, and DG Khan Cement, Rs2.95 at Rs88.75 on 3m shares.

OGDC followed them, up Rs1.65 at Rs126 on 3m shares and Pakistan Petroleum, higher by Rs4.80 also on 3m shares. Others were modestly traded.

DEFAULTER COS: Barring Crescent-Standard Bank, which came in for stray support and rose by 25 paisa at Rs4 on 0.127m shares, all others lacked normal support and showed either-way fractional changes.

BOARD MEETINGS: N.P. Spinning, Zeal-Pak Cement on July 15, Abbott Lab on July 18, Faysal Bank on July 27.

DIVIDEND: AMZ Plus Income Fund, bonus shares at the rate of 12 per cent.