November 04, 2006	Saturday	Shawwal 11, 1427

KARACHI, Nov 3: Stocks on Friday responded bullishly to reports of putting off the introduction of the new risk management system up to Dec 4, and an increase in CFS to Rs55 billion followed by heavy covering purchases at the lower levels on the oil and banks counters.

But analysts fear some rethinking on the issue during the intervening closures may not be in line with the general perception as the relief appears to be temporary in an apparent effort to avert any ugly situation as the opponents seem to have taken rigid positions on some of the SECP guidelines.

The KSE 100-share index recovered 301.36 points or 2.7 per cent at 11,246.71 on the strength of leading base shares as compared to 10,945.35 a day earlier. The market capital also rose by Rs85.674bn at Rs3,097.410bn. The index had lost over 500 points during the last three sessions.

The KSE 30-share index was marked up by 388.87 points at 13,637.66 or 2.8 per cent on the strength of leading base shares.

Most of the leading stocks, notably National Bank, MCB, OGDC, Pakistan Petroleum, Pakistan Oilfields and PTCL, which have been under pressure during the last three sessions, came in for active buying and some of them finished around their upper locks.

“The SECP has met most of the demands of the KSE members to put the market back on the rails amid fears that the situation could go out of hand if pressed for the implementation of the new risk management system,” leading analyst Faisal Abbas said. “Perhaps memories of the market crash of March 2005 and June 2006 were afresh in their minds”.

“But the introduction of the new risk management system is deferred only and not withdrawn,” Ashraf Zakria said, adding “the issue is very much there despite one month’s relief”.

How will brokers react next month after the new system is introduced? The chances of repeat performance are not fully ruled out, he added.

Indications are that trading is expected to be smooth at least till the deadline of Dec 6, but what after that no one is sure sans revival of year-end buying, which could absorb the negative fallout of the new system, some others said.

The market recovery was initiated by heavy buying in the leading bank and oil shares followed by auto and blue chips on the other counters but sellers held on to their positions anticipating further increase in prices.Plus signs dominated the list under the lead of Pakistan Petroleum, National Bank, Pakistan Oilfields, Arif Habib Securities and Lakson Tobacco, which recovered a good part of previous losses, up by Rs10.10 to Rs15.

They were followed by Attock Petroleum, Packages, Clariant Pakistan, IGI Insurance, EFU General, United Bank, Adamjee Insurance and MCB, up by Rs7 to Rs9.

Losses on the other hand were mostly fractional barring, Dawood Lawrence, Thal Industries, Sitara Chemicals, Gillette Pakistan and Bata Pakistan, which suffered fall ranging from Rs2.05 to Rs5.60.

Trading volume rose to 289m shares from the previous 197m shares as gainers forced a strong lead over the losers at 213 to 70, with 32 shares holding on to the last levels.

OGDC topped the list of most actives, up by Rs3.30 at Rs141.75 on 52m shares followed by Fauji Fertiliser Bin Qasim, higher by Rs1.45 at Rs30.60 on 25m shares, National Bank and up by Rs12.75 at Rs288 on 24m shares.

Bank of Punjab, firm by Rs4.95 at Rs104.25 on 18m shares, MCB, up by Rs8.35 at Rs280.85 on 17m shares, Pakistan Petroleum, higher by Rs10.10 at Rs256.45 on 16m shares and PTCL, up by Rs1.85 at Rs44.85 on 14m shares.

Other actives included Bank Alfalah, higher by Rs2.50 on 16m shares, Lucky Cement, firm by 80 paisa on 10m shares and PICIC, up by Rs1.30 on 9m shares.FORWARD COUNTER: OGDC was also actively traded on the cleared list and was marked up by Rs3.30 at Rs143 on 15m shares followed by National Bank, sharply higher by Rs12.75 at Rs290.75 on 8m shares and Fauji Fertiliser Bin Qasim, higher by Rs1.43 at Rs30.12 on 8m shares.Pakistan Petroleum followed them, higher by Rs10.05 at Rs258.70 on 6m shares and MCB, up Rs7.75 at Rs283.75 also on 6m shares.

DEFAULTER COS: Crescent Standard Bank came in for modest support and led the list of actives on this counter, up by 15 paisa at Rs4.30 on 0.471m shares followed by Unity Modaraba, also up by 15 paisa at Rs0.65 paisa on 0.264m shares and Norrie Textiles, easy by 10 paisa at Rs4.40 on 0.163m shares.