September 27, 2006	Wednesday	Ramazan 3, 1427

KARACHI, Sept 26: The KSE 100-share index on Monday recouped the overnight loss on the strength of the oil sector but the broader market did not show signs of revival recovery owing to falling demand.

The recovery, however, appears to be too feeble to give the market a sense of satisfaction that bulls are around and could set a definite future direction for it to follow aided by some more positive news.

But the market on-balance turned in an improved performance on active support at the lower levels aided partly by official denial of coup rumours and partly to technical factors.

The KSE 100-share index recovered overnight losses and was up by 53.28 points at 10,305.43 as compared to Monday’s 10,252.15, reflecting the strength of leading base shares. The KSE 30-share index rose by 58.51 points at 12,808.02 points.

Positive outcome of president’s US visit and tactical endorsement of his policies by the US president was another positive factor behind the market’s positive turn, some brokers think.

The perception of political stability after the president’s US visit is expected to play a significant positive role in the market’s future outlook in the months to come, they predict.

But the buying lacked an aggressive support on any of the counters as the weakness of the oil sector followed by reports of fall of world prices below $60pbd did not allow consolidation forces to play a greater role, analysts said.

Owing to their combined heavy weightage in the index, the oil sector played a crucial role in setting its direction and the positive or negative impact on the entire market, they said.

“Dividend and stock dividend announcements pouring in daily from some of the second-liners signal that investors should not be deterred by negative news from the political front and should go by the market fundamentals,” analyst Ahsan Mehanti said.A cash dividend of 40 per cent plus stock dividend of 20 per cent by Berger Pakistan and 110 per cent by Shezan International was on the higher side of the analysts’ predictions and was well received by the investors.

Leading gainers were led by Arif Habib Securities and Rafhan Maize, which posted gains ranging from Rs12.75 to 42.50, followed by Attock Petroleum, Shaheen Insurance, Pakistan Petroleum, Pakistan Oilfields, Clover Pakistan, Union Bank, Attock Refinery and Artistic Denim, up by Rs3.50 to Rs5.90.

Losers were led by Atlas Honda, Grays of Cambridge, Jahangir Siddiqui & Co, MCB Bank, AKD Securities, National Refinery and Pakistan Services, off Rs2.70 to Rs21.75. Others showed fractional fall.

Traded volume, however, failed to keep match buying

offers in the absence of seller and fell to 105m shares as compared to 143m shares a day earlier. Losers topped gainers at 139 to 114, with 33 shares holding on to the last levels.

MCB, which has the highest weightage of 11.5 per cent in the KSE index, came in for renewed selling at the higher levels and fell by Rs2.70 at Rs255.20 on 12m shares, National Bank, firm by 50 paisa at Rs245.15 on 11m shares, Bank Alfalah, unchanged at Rs44.40 on 10m shares, Pakistan Petroleum, up Rs3.50 at Rs230.80 on 7m shares, OGDC, higher by Rs1.25 at Rs125.50 on 6m shares, DG Khan Cement, steady by 50 paisa at Rs94.75 on 5m shares, and Hub-Power, higher by Rs1.15 at Rs24.90 on 4m shares.

Other actives were led by Bank of Punjab, higher by Rs1.45 on 4m shares, Nishat Mills, up Rs1.15 on 3m shares, and Saudi Pak Bank, higher by one rupee also on 3m shares.

FORWARD COUNTER: Odd price movements were seen on the forward counter where September and October settlements of PTCL, fell fractionally by six and 34 paisa at Rs40.49 and 38.91, respectively. PICIC Bank was marked up by 67 paisa at Rs31.80 for its September contract and 10 paisa for the October delivery at Rs32.85.

Among the other actives, Pakistan Petroleum was leading, higher by Rs3.25 at Rs231.15 on 2m shares.

DEFAULTER COS: Active trading was again witnessed on this counter as a section of which generally played safe indulged in alternate bout of buying and selling under the lead of Norrie Textiles, which was marked down by 30 paisa at Rs3.25 on 1.247m shares.Unity Modaraba followed it, easy by five paisa at Rs60 paisa on 1.079m shares, and Crescent Investment Bank, up one rupee at Rs3.90 on 0.950m shares.

DIVIDEND: B.F. Modaraba, bonus shares at the rate of 15 per cent; Reliance Weaving, bonus shares 25 per cent; Al-Noor Modaraba, seven per cent; Guardian Modaraba, 12.5 per cent; B.R.R. Modaraba, seven per cent; Modaraba Al-Mali, 12.5 per cent; Gatron Industries, 15 per cent; Pakistan Synthetic, 10 per cent; Javedan Cement, 16.7 per cent; Pakistan Engineering Company, 30 per cent; Janana Demalucho Textiles, bonus 10 per cent, right shares 300 per cent; Shams Textiles, 7.5 per cent; Goodluck Industries, 20 per cent; Murree Brewery, cash 50 per cent, bonus shares 10 per cent; and Treet Corporation, 20 per cent.

The following companies have omitted the dividend for the last year ending June 30, 2006: Babari Cotton, Wazir Ali Industries, Japan Power, Netsol Technologies, Capital Assets Leasing Corporation, Brothers Textiles, Bannu Woollen, Fateh Sports, Asset Investment Bank and Network Leasing.