October 11, 2006	Wednesday	Ramazan 17, 1427

KARACHI, Oct 10: Stocks on Tuesday recovered from the overnight lows on active short-covering in bank shares but the rally was too feeble to put the market back on sound footing. The KSE 100-share index added another 17 points to the overnight total at 10,959.71 points.

Positive reports about the MCB GDR issue were well received in the market as was reflected by a sharp rise in its share value and some others bank shares but the market needs a massive stimulant to lure leading investors back in the trading arena for a smooth sailing.

However, the market shrugged off the overnight hesitancy as investors covered positions in the leading shares under the lead of MCB on reports that its GDR issue has received a positive response from the foreign investors.

According to market sources, the management of MCB sought $150m through its GDR issue and road-shows held in a number of foreign countries recently and it managed to line up $500m offers from world renowned investors. Its shares value rose by Rs6.90 at Rs271.90 after last two sessions fall.

The KSE 100-share index posted a fresh gain of 16.96 points at 10,959.71 points as compared to 10,942.75 a day earlier, reflecting the strength of leading base shares in the bank and oil sectors.

The KSE 30-share index rose by 70.96 points at 13,631.79 points as compared to the previous 13,560.83 points, as leading base shares ended higher.

Leading base shares, notably Faysal Bank, MCB and National Bank and some blue chips on the other counters were said to be behind the current rally despite selling in the leading oil shares. Faysal Bank announced its third quarter accounts, showing an increase in EPS at Rs5.37.

But the rally appears to be inconclusive as leading local and foreign investors kept to the sidelines most of the time and did not expand their portfolios even on the safe counters for unknown reasons, which has a negative impact on the underlying sentiment and budding technical rally.

“The perception that the GDR of OGDC to be floated shortly and will be listed on the London Stock Exchange could get the same foreign response because its capital base and financial footing are terrible sound,” analysts said, adding: “Investors were back in the market and covered positions having an overview of the developing corporate scenario.”

News from the external factors may not be that positive but investors seem to have toed the line of market fundamentals at least for the near-term rather than overawed by the negative news, some others said.

Technically, the market has already pulled itself out from the overweight position during the last two sessions on selective selling and indications are that it will perform well in the sessions to come, brokers said.

MCB and Arif Habib Securities led the market advance, up by Rs6.90 and Rs20.50, respectively, followed by New Jubilee Insurance, Atlas Battery, Engro Chemicals, Pak-Suzuki Motors, and Millat Tractors, which posted gains ranging from Rs3 to Rs5.

Pakistan Refinery and Grays of Cambridge, which suffered fall ranging from Rs5.50 to Rs10, respectively. Other prominent losers were National Refinery, KSB Pumps, Pak Electron, Clariant Pakistan, National Foods and Attock Petroleum, off by Rs3 to Rs5.Trading volume showed a modest rise at 199m shares from the previous 187m shares as gainers held a modest lead over losers at 138 to 133, with 50 shares holding on to the last levels.

MCB topped the list of actives on news of positive response to its GDR, up Rs6.90 at Rs271.90 on 22m shares, followed by WorldCall Telecom, firm by 60 paisa at Rs12.80 on 20m shares, Faysal Bank, up Rs2.25 at Rs66.65 on 15m shares, National Bank, higher by Rs1.25 at Rs268.25 on 14m shares, Pakistan Petroleum, off Rs1.85 at Rs248.15 on 12m shares, PTCL, higher by 60 paisa at Rs43 on 11m shares and OGDC, off Rs1.45 at Rs135.75 on 9m shares.

Other actives were led by DG Khan Cement, easy 45 paisa on 10m shares, Fauji Fertiliser Bin Qasim, up 75 paisa also on 10m shares and Bank Alfalah, up 90 paisa on 9m shares.

FORWARD COUNTER: MCB also attracted strong speculative support on the cleared list and was quoted higher by Rs7 at Rs273 on 8m shares followed by National Bank, up Rs1.30 at Rs269.80 on 4m shares and Faysal Bank, higher by Rs2.55 at Rs67.20 also on 4m shares.

Pakistan Petroleum followed them, off Rs1.70 at Rs245.30 on 3m shares and Bank Alfalah, up 75 paisa at Rs47.60 also on 3m shares.

DEFAULTER COS: Crescent Standard Bank came in for renewed speculative support and was traded higher by 40 paisa at Rs4.30 on a large volume of 1.272m shares, followed by Norrie Textiles, higher by 75 paisa at Rs6.50 on 0.473m shares. Others showed fractional changes amid slow business.

DIVIDEND: Blessed Textiles, cash 7.5 per cent, Faisal Spinning, 7.5 per cent, Sapphie Fibres, 25 per cent, Prudential Discount House, 2.50 per cent interim of an identical amount already paid, Reliance Spinning, 10 per cent and Tariq Glass, cash 10 per cent, bonus share five per cent.