September 07, 2006	Thursday	Sha'aban 13, 1427

KARACHI, Sept 6: Stocks on Wednesday turned in an improved performance as investors covered positions on the selected counters at the lower levels but leading bears were conspicuous by their absence.

Essentially, it was a technical rally in an oversold market and has nothing to do with an anticipated sustained bull-run as there were more than one inhibiting factors weighing heavily against the investor mind, brokers said.

After having passed through a consolidation phase, share values recovered from attractively lower levels on active short-covering in the oil, bank and cements sectors.

Both the 30-share and 100-share indices followed the market’s general line of action and rose by 90.56 and 66.91 points at 12,567.09 and 10,068.70 points respectively, reflecting the strength of leading base shares.

“I don’t think investor perceptions about the future share market outlook are too bullish,” says a leading analyst, adding “overvalued shares on the high-profile sector could opt for fresh pruning triggered by external factors”.

Bank share generally rose on active support followed by reports of foreign interest in some of the local banks including management changes in some of them, while oil shares reacted bullishly to fall in world oil prices and strong support at the lower levels.

But the chief factor behind the rebound appeared to be active support in an oversold market, which has been under pressure for the last couple of sessions and had shed extra weight in the process, analysts said.

“The technical rally is too feeble to put the market back on the steady upward drive,” they said, adding “most of the negative news are still there and many will not dare to go against them”.

The ongoing probe into the market crash of March 2005 and SECP directive to the brokerage houses to cooperate with the investigating team coupled with allied fear may continue to take their toll in various forms including low volumes.

But leading sellers were conspicuous by their absence as apparently awaiting further pick up in prices. The volume figure, therefore, fell to a meagre total of 128m shares.

Trading volume fell to 128m shares from the previous 161m shares but gainers held a comfortable lead over the losers at 160 to 113, with 39 shares holding on to the last levels.

Leading gainers were led by Arif Habib Securities and Pakistan Services, up by Rs14 and Rs16.10, followed by Pak-Suzuki Motors, Bata Pakistan, Agriautos, KSB Pumps, MCB and Jahangir Siddiqui Capital Market, which posted gains ranging from Rs3 to Rs6.

Prominent losers were led by Millat Tractors and Unilever Pakistan, off Rs8 to Rs9.95.

IGI Insurance, Pakistan Cables,

Ferozsons Lab, Attock Petroleum, Blessed Textiles, Pakistan Refinery and EFU Life followed them, off by Rs3 to Rs7.95.

MCB led the list of actives, up by Rs4.50 at Rs228 on 13m shares followed by National Bank, higher by Rs3.35 at Rs231.85 on 13m shares and PICIC, higher by Rs3.20 at Rs68.05 on 12m shares.

Bank of Punjab, up by Re 1 at Rs84.50 on 9m shares, D.G. Khan Cement, steady by 80 paisa at Rs94.70 also on 9m shares, OGDC, up Rs1.50 at Rs128 on 8m shares and PICIC Bank, up Rs1.40 at Rs33.80 on 6m shares.

Other actives were led by Callmate Telips, up by 90 paisa on 6m shares, Lucky Cement, higher by 80 paisa on 4m shares and Pakistan Petroleum, steady five paisa also on 4m shares.

FORWARD COUNTER: PICIC came in for active support and rose by Rs3.25 at Rs68.55 on sell-off reports on 4m shares followed by National Bank, higher by Rs2.05 at Rs232.90 on 3m shares and MCB, up by Rs3.35 at Rs228.35 also on 3m shares.

PICIC Bank also attracted good support in sympathy with its sister company and rose by Rs2.35 at Rs34 on 2m shares and D.G. Khan Cement, steady by 55 paisa at Rs95.30 also on 2m shares.

DEFAULTER COS: Active trading was witnessed on this counter as half dozen shares came in active buying and selling under the lead of Unity Modaraba, which rose by 45 paisa at Rs1.05 on 2.397m shares.

Other actives were led by Norrie Textiles, up by Re1 at Rs3.05 on 0.641m shares, followed by Crescent Standard Bank, unchanged at Rs3.50 on 0.415m shares, Indus Fruits, higher by Re1 at Rs4.50 on 0.213m shares and Quice Foods, steady by 10 paisa at Rs3.10 on 0.141m shares.

BOARD MEETINGS: Saudi Pak Leasing, Crescent Steel and Allied Products, on Sept 12, Jahangir Sidduqui Capital Market, Jahangir Siddiqui Investment Bank, Pakistan National Shipping Corporation and Al-Abid Silk on Sept 13, Abbott Lab on Sept 16, Security Leasing and NetSol Technologies on Sept 22.