October 14, 2006	Saturday	Ramazan 20, 1427

KARACHI, Oct 13: Stocks on Friday were back on the rails as leading bank and oil shares came in for active short-covering at the lower levels and finished modestly recovered amid light trading.

Trading volume, however, shrank further to 105m shares as investors just filled in the portfolio gaps here and there and did not opt for fresh buying but halted the market’s downward drift.

In market parlance, weekend rally generally paves the way for a sound opening next week but the pre-Eid holiday week could well prove anybody’s guess.

The KSE 100-share index recovered 44.26 points at 10,924.55 as compared to 10,880.29 a day earlier, as all leading base shares rose sharply higher under the lead of MCB, Bank of Punjab, National Bank, OGDC and PTCL.

The KSE 30-share index rose by 29.19 points at 13,441.32 as compared to 13,412.13 a day earlier, reflecting the strength of leading base shares.

Instances of strong buying on selected counters, notably on the oil sector was, however, not lacking as some of the leading oil shares maintained a firm outlook under the lead of OGDC and Pakistan Petroleum on reports of fresh exploration concessions and future growth perceptions.

The market seems to be passing through a consolidation phase being a bit overbought position and ahead of Eid holidays as investors are plying safe, but as far as the fundamentals are concerned they are terribly bullish both in terms of higher dividend and the presence of foreign buying on some of the counters, notably banks.

Although rumours about the foreign interest in some of the smaller banks are fading, Barclays is still in the news in a different context. According to market sources, its management is hiring local bankers apparently for some specific purpose and may still be eyeing the local bank.“The market has received with a bit optimism OGDC’s update future productions targets, capacity expansion plans and reserve position,” analysts said. “The proposed GDR issue could significantly be added to its current performance.” But what is more important for its future bullish outlook is the official nod to resume, after two years suspension, its drilling activities in Balochistan, they added.

Leading gainers were led by Arif Habib Securities and Wyeth Pakistan, up by Rs21.95 and Rs35, respectively, followed by Bank of Punjab, Union Bank, Pakistan Resource Company, Pakistan Tobacco, Honda Atlas, Ghani Glass, Zulfiquar Industries and Lakson Tobacco, which rose by Rs3.55 to Rs10.50.

Losers were led by Jahangir Siddiqui Fund and Grays of Cambridge, off Rs9.90 and Rs10.

Other prominent losers included Metropolitan Bank, Central

Insurance, Pakistan Refinery, Pakistan Oilfields, KSB Pumps, Honda Atlas, Millat Tractors and Unilever Pakistan, off Rs3.35 to Rs9.

Trading volume further shrank to 105m shares from the previous 120m shares but gainers forced a strong lead over losers at 151 to 124, with 49 shares holding on to the last levels.

Bank of Punjab led the list of actives, up Rs4.60 at Rs94.25 on 15m shares, followed by National Bank, up Rs1.85 at Rs268.95 on 10m shares, Bank Alfalah, firm by Rs1.45 at Rs47.95 on 10m shares, MCB, higher by Rs1.85 at Rs266.80 on 9m shares, OGDC, steady 35 paisa at Rs137.20 also on 9m shares, Faysal Bank, lower Rs1.15 at Rs68.20 on 5m shares, and PTCL, higher by 50 paisa at Rs42.40 on 3m shares.

Other actives were led by Crescent Standard Bank, up 30 paisa on 4m shares, PICIC, lower 35 paisa on 3m shares and Crescent Commercial Bank, steady by five paisa on 2m shares.

FORWARD COUNTER: Bank of Punjab was also actively traded on the forward counter, up Rs3.15 at Rs94.55 on 5m shares followed by Pakistan Petroleum, off Rs1.45 at Rs239.75 on 3m shares, and National Bank, up Rs1.85 at Rs270.05 also on 3m shares.

MCB followed them, up 90 paisa at Rs267.55 on 2m shares, and Bank Alfalah, higher by 50 paisa at Rs48.25 also on 2m shares.

DEFAULTER COS: Crescent Standard Bank again came in for active buying and rose 30 paisa at Rs5.50 on 3.788m shares followed by Norrie Textiles, higher by 25 paisa at Rs6.65 on 0.425m shares, and Unity Modaraba, lower five paisa at 65 paisa on 0.222m shares. Price changes were fractional.