October 18, 2006	Wednesday	Ramazan 24, 1427

KARACHI, Oct 17: Stocks on Tuesday staged a massive recovery as leading bank and oil shares came in for strong short-covering at the lower levels, pushing the KSE 100-share to well above the barrier of 11,000 after a number of abortive bids.

Incidentally, it appears to be a judicious blend of both foreign portfolio and local buying, confined to half a dozen leading bank and oil shares, having together a weightage of about 60 per cent in the index.

OGDC, National Bank, MCB, Pakistan Oilfields and Pakistan Petroleum were leading among them, which closed around the upper limits of circuit breakers, rising by Rs4.50 to Rs9.70. Being heavily-capitalised, they added Rs65.665 billion to the market capital at Rs3,084.188 billion by heavy foreign and local buying in the leading oil and banking shares at the lower levels amid renewed talk of acquisitions.

But what seems to have put the market back on the rails was rumours about the GDR of OGDC being fixed at $3 before it was listed on the London Stock Exchange shortly.

The KSE 100-share index which owes strength to OGDC was up by 257.73 points or 2.36 per cent at 11,167.04 points, while the KSE 30-share index was quoted higher by 265 points, reflecting the strength of the banking shares, notably MCB and National Bank.The smart rally presented a pleasant surprise to the leading analysts who were predicting a dull market in the sessions preceding the Eid holidays and there were out to line up cogent reasons to support the rally based on positive market fundamentals.“If the index could sustain the level of 11,000 or beyond prior to the Eid holidays, the post-Eid market will witness a massive bull-run,” Ashraf Zakria, a leading stock analyst, predicts adding: “All the basic fundamentals are more than positive point to it.”

Faisal A. Rajabali holds the same view on the perception that the presence of strong foreign portfolio buying on selected counters could push prices further higher currently ruling around attractively lower levels.

The market could pass through a technical correction even on Wednesday, but it appears pretty difficult to pull it down from its current stature, which appears to be more than viable both on the strength of foreign buying and higher payouts, he said.Pakistan Oilfields and Wyeth Pakistan were leading among the gainers, up by Rs9.75 and Rs16, respectively, followed by Allied, Askari Bank, MCB, National Bank, United Bank, IGI, Pakistan Refinery, OGDC, Pakistan Oilfields, and Pakistan Petroleum, up by Rs4.15 to Rs9.75.

They were followed by Clover Pakistan, Zulfiquar Industries, Clariant Pakistan and Millat Tractors, up by Rs5.30 to Rs9.03.

Prominent losers were led by Gatron Industries and Dawood Hercules, off Rs7 and Rs13. Other notable losers included Jahangir Siddiqui & Co, Indus Motors, Callmate Telips, Murree Brewery, Husein Sugar, Pak-Suzuki Motors, and Gillette Pakistan, off Rs2.40 to Rs6.30.

Trading rose to 177m shares from the previous 64m shares, as gainers held a strong lead over losers at 189 to 97, with 37 shares holding on to the last levels.

OGDC, topped the list of most active scrips, up Rs6.80 at Rs142.80 on 40m shares, followed by National Bank, sharply higher by Rs9.70 at Rs279.90 on 27m shares, Bank of Punjab, firm by Rs2.20 at Rs95.10 on 9m shares, Pakistan Oilfields, higher by Rs9.75 at Rs339.75 on 8m shares, MCB, up Rs4.45 at Rs269.90 on 8m shares, Bank Alfalah, steady by 30 paisa at Rs47.75 on 6m shares and Faysal Bank, up 75 paisa at Rs67.90 on shares.

Other actives were led by Crescent Commercial Bank, up one rupee on 7m shares, followed by Fauji Fertiliser Bin Qasim, higher by 40 paisa on 5m shares and WorldCall Telecom, firm by 45 paisa on 4m shares.

FORWARD COUNTER: OGDC also led the list of actives on the cleared list, higher by Rs6.45 at Rs143.90 on 10m shares, followed by Pakistan Petroleum, up Rs7.75 at Rs246.80 on 8m shares, and National Bank, higher by Rs8.50 at Rs280.50 on 7m shares.

DG Khan Cement followed them, up Rs2.05 at Rs89.75 on 4m shares and Pakistan Oilfields, higher by Rs8.75 at Rs341.25 on 3m shares. Others also rose by on light volume.

DEFAULTER COS: Crescent Standard Bank again came in for active support and rose by 25 paisa at Rs5.10 on 3.481m shares, followed by Norrie Textiles, lower 15 paisa at Rs5.50 on 0.159m shares. Others showed fractional price changes amid low volumes.