July 19, 2006	Wednesday	Jumadi-ul-Sani 22, 1427

KARACHI, July 18: Stocks on Tuesday were back on the rails aided by active short-covering in the leading oil and bank shares at the lower levels and analysts said it appeared to be the last week’s repeat performance when prices recouped initial fall.

The KSE-100 share index again breached through the barrier of 10,000 to close 244.04 points or 2.45pc higher at 10,191.84 as compared to 9,947.80 a day earlier, signalling that it could maintain its upward drive in the coming sessions also aided by perceptions of higher final and interim payouts for the financial year ended June 30, 2006.

The market capital also recovered Rs67.427bn at Rs2,864.136bn as heavily capitalised shares notably OGDC, PTCL, Pakistan Petroleum and Pakistan Oilfields posted good gains.

Among the leading oil shares, OGDC, Pakistan Petroleum, Pakistan Oilfields, were leading gainers followed by National Bank and MCB and PTCL, having a weightage of 60pc being all the leading index shares, which was well-reflected in a massive surge.

The interesting feature was that low-priced cement shares remained in active demand under the lead of Fauji and Dewan Cement followed by reports of higher sales.

Apart from anticipatory buying ahead of board meetings of some of the leading companies, the other support factor was said to be an increase of $3m in a day in the Special Convertible Rupee Account, which the analysts said could absorb the negative fallout of some problems on the liquidity front.

But a leading stock analyst Hasnain Asghar Ali attributed the snap rally in the backdrop of heating up of the political scenario to a positive US statement in favour of Pakistan against the Indian blame on the Mumbai bomb blasts.

“The market may rule erratic during the next couple of sessions despite the fact that possibility of new account financial buying is there but some political inhibitions could take their toll any session,” another leading stock analyst Faisal Abbas fears.

However, no one disputes the fact that most of the leading shares are still in the buying range and ensure higher capital gains, although leading investors and institutional traders are not inclined to trigger a price flare-up at this stage, analyst Ashraf Zakria said.

He said that perception that the oil, bank and cement sectors could keep the market in a positive mood in the coming sessions on the strength of their earnings is playing a pivotal role in the market’s current positive stance.

Unlike the previous sessions, plus signs were strewn all over the list, Shell Gas and IGI Insurance being among the leading gainers, up by Rs13.50 and Rs17.45, followed by Arif Habib Securities, MCB, National Bank, Mustehkam Cement, National Refinery, Pakistan Refinery, Attock Petroleum, PSO, Pakistan Oilfields, Abbott Lab, Gillette Pakistan and Pakistan Petroleum, which posted gains ranging from Rs5.10 to Rs11.05.

Losses on the other hand were mostly fractional barring Pakistan Hotels and Clariant Pakistan, off Rs5 and Rs5.55. ICI Pakistan, National Foods, Engro Chemical and Shifa International followed them, lower by Rs1.25 to Rs5.

Trading volume showed a sharp increase at 247m shares as compared to previous 153m shares as gainers outpaced losers by a big margin at 212 to 103,wih 38 shares holding on to the last levels.

The most active list was topped by OGDC, higher by Rs3.90 at Rs137.50 on 34m shares followed by National Bank, up by Rs9.40 at Rs229.40 on 21m shares, Pakistan Petroleum, higher by Rs11 at Rs231 on 21m shares, PTCL, firm by Rs2 at Rs42 on 17m shares, MCB, higher by Rs6.20 at Rs220.50 on 10m shares and Pakistan Oilfields, firm by Rs7.60 at Rs338.90 on 9m shares.

Other actives were led by WorldCall Telecom, unchanged on 15m shares, D.G. Khan Cement, easy 15 paisa on 13m shares, Fauji Cement, lower 15 paisa on 12m shares and Dewan Cement, up by Re1 on 8m shares.

FORWARD COUNTER: OGDC also led the list of actives on this counter, up Rs4.60 at Rs138.50 on 8m shares, followed by Pakistan Petroleum, higher by Rs11 at Rs231.50 on 7m shares, National Bank, higher by Rs8.85 at Rs229.80 on 6m shares.

Other actives were led Pakistan Oilfields, up by Rs5.60 at Rs339.10 on 4m shares and D.G. Khan Cement, firm by 40 paisa at Rs95.75 also on 4m shares.

DEFAULTER COS: Trading on this counter remained relatively slow as investors remained busy in the ready section. Price changes were fractional. Quice Foods was leading among the actives, lower 10 paisa at Rs3.15 on 0.118m shares.

BOARD MEETINGS: Frontier Ceramics on July 22, Sanghar Sugar, Pakistan Premier Fund, Thal Industries, Shahtaj Sugar, Frontier Sugar, Premier Sugar and Chashma Sugar on July 24 and Mirpurkhas Sugar on July 27.