September 29, 2006	Friday	Ramazan 5, 1427

KARACHI, Sept 28: Stocks on Thursday maintained upward drive as rumour-driven rally continued to inspire speculative support on some of the safe havens in bank and oil shares amid large volume.

“I don’t think the sell-off of some of smaller banks is so close but steep increase in their share values reflects that something is definitely cooking,” says a leading stock analyst Ahsan Mehanti. “There may certainly be breakthrough on the sell-off and merger talks in some of the banks.”

Stocks, therefore, came in for fresh strong buying in the oil sector aided by reports of significant increase in oil and gas reserves of 53 and 21 per cent, respectively, at the Tal block of OGDC, Pakistan Petroleum and Pakistan Oilfields.

The KSE 100-share index added 142.17 points to the overnight total at 10,528.69 as compared to 10,386.52 a day earlier, reflecting the strength of MCB and National Bank, two of the index heavy weights. The KSE 30-share index also rose by 175.94 points at 13,106.06 points.

The reports again put this sector on the top as out of the index gain of 145 points, this sector jointly contributed about 62 per cent to the total by virtue of its weightage in it, analysts said.

Already, ruling far below their best levels, all shares of these companies came in for active support at the still attractively lower levels and evoked large sympathetic support on the other blue chip counters, they added.

“The market was already in a terribly buoyant mood amid rumours of strong presence of some foreign asset management funds in the second-tier banks for direct purchases or joint ventures,” stock analyst Faisal Abbas said. “The rumour was given credence after some management changes in this sector in the recent past.”

Having credible dividend records and financial footing, the banking sector could be an envy of any foreign investor and some of the smaller among them are steadily rising on support aided by this perception.

There is a loud whispering in the market that half a dozen weaker links among them may opt for all-out sell-off or for joint ventures, market sources said.

“Both the oil and bank sectors being most viable and market leaders could push the index to any high if no one among them waiver halfway,” analyst Ashan Mehanti predicts, adding: “It is very unusual for the Ramazan market to behave like this.”Plus signs again dominated the list under the lead of Shezan International, Attock Petroleum, PSO and Dawood Hercules, which posted gains of Rs9.80, Rs11, Rs12.70 and Rs14.70, respectively.

Other prominent gainers were led by EFU Life, Lucky Cement, Shell Pakistan, Millat and Al-Ghazi Tractors, Pak Datacom, Union Bank and National Bank, up by Rs4 to Rs6.95.

Nestle Pakistan, led the list of losers, off Rs15 followed by Arif Habib Securities, Sapphire Fibres, HinoPak, and Artistic Denim, off Rs3.70 to Rs5.

Trading volume soared to 243m shares, a higher daily figure for the month of Ramazan, as compared to 142m shares a day earlier, while gainers maintained a fair lead over losers at 170 to 109, with 36 shares holding on to the last levels.

National Bank came in for active support and led the list of actives, up by Rs6.95 at Rs254.85 on 37m shares, followed by DG Khan Cement, up Rs2.40 at Rs97.50 on 21m shares, PTCL, higher by Rs1.20 at Rs41.45 on 18m shares, MCB, firm by Rs1.25 at Rs256 on 16m shares, PICIC, higher by Rs3.20 at Rs71.65 on sell-off rumours, on 16m shares, OGDC, up Rs2.15 at Rs128.65 on 15m shares, and Pakistan Petroleum, steady by 95 paisa at Rs235.25 on 11m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, up 80 paisa on 11m shares, Crescent Bank, higher by one rupee on 7m shares and Fauji Cement, firm by 70 paisa also on 7m shares.

FORWARD COUNTER: National Bank also led the list of actives on this counter, up Rs6.40 at Rs256.40 on 6m shares, followed by DG Khan Cement, higher by Rs2.40 at Rs89.00 on 4m shares and National Bank September delivery, higher by Rs8 at Rs255.

Both the September and October settlements of OGDC rose by Rs2.20 at Rs128.50 and Rs1.70 at Rs129.80, respectively.

DEFAULTER COS: Active trading was witnessed on this counter as investors indulged in alternate bouts of buying and selling. While Norrie Textile and Crescent Standard Bank were quoted lower by 25 and 35 paisa at Rs3.10 and Rs3.75 on 0.972m and 0.802m shares, respectively, Nazir Cotton was marked up by 85 paisa at Rs2.45 on 0.683m shares.

Unity Modaraba remained in active demand and was held unchanged at the overnight level of 60 paisa on 0.233m shares.

DIVIDEND: Dreamworld, cash 10 per cent, Shield Corporation, cash 15 per cent, Dawood Capital Management, bonus shares 10 per cent, Dawood Mutual Fund, bonus 15 per cent, Dawood Money Market Fund, bonus 11.5 per cent, Ghani Glass, cash 10 per cent (interim 20 per cent already paid), bonus shares 25 per cent, Ismail Industries, cash 15 per cent, Fazal Cloth, bonus shares 15 per cent and Bosicor Pakistan, bonus shares 7.5 per cent.