November 15, 2006	Wednesday	Shawwal 22, 1427

KARACHI, Nov 14: Share market on Tuesday recovered from the recent lows on active covering purchases on the blue chips counters aided by reports of disinvestment of 15 per cent government stakes in OGDC through global depository shares (GDSs) and secondary offer for the domestic investors.

But leading analysts said it was essentially a technical rebound long overdue in a highly oversold market, but OGDC GDS issue has given bulls an excuse to fight back. Although there was no major price change in the OGDC share value, it has raised hopes of sustained run-up in the coming weeks after the fixation of its GDS price.

The KSE 100-share index recovered 125.48 points or 1.17 per cent at 10,869.32 as compared to 10,743.84 a day earlier but well below the session’s high of 10,890.26. The KSE 30-share index also rose by 179.83 points at 13,357.39.

“The increase in the free float of the OGDC shares after the official unloading is expected to generate a lot of interest by the foreign buyers,” analyst Ahsan Mehanti speculates, fearing “local support for domestic offering may not be that enthusiastic”.

The OGDC GDSs are expected to be listed on the London Stock Exchange possibly in December after its management fixed the selling price of its shares based on supply and demand factors on the free market.

However, the falling market in the backdrop of SECP forensic probe report, the news from the OGDC after government indemnity gave the much-needed push to it, he added.

But credit for halting the downward trend largely went to the banking and oil sectors which came in for strong support under the lead of National Bank and MCB followed by Pakistan Petroleum and some others finished around their upper locks.

“The market is still in an oversold position, notably on the blue chip counters and could attract a lot of genuine and speculative support if the forensic report is not made an excuse by the big ones,” Faisal A. Rajabali, a leading stock analyst, said.

Since the delay in the release of the SECP probe report on market crash, some of the leading speculators are causing flutters in the market after spreading negative and positive rumours to suit their whims and to push up or lower prices, some others said.

Advancing shares managed to force a slight edge after several lean sessions under the lead of Shell Gas and Arif Habib Securities, up by Rs12.80 and Rs17.45 respectively, followed by PICIC, ICI Pakistan, Union Bank, United Bank, Pakistan Oilfields, Atlas Honda, Packages and National Bank, which posted gains ranging from Rs3 to Rs9.20.

Losses on the other hand were mostly fractional barring Pakistan Refinery and Wyeth Pakistan, off Rs7.70 and Rs20. They were followed by Artistic Denim, Pakistan International Containers, Pak-Suzuki Motors and Jahangir Siddiqui & Co, off Rs3.10 to Rs5.25.

Trading volume was light totalling 141m shares as compared to 139m shares as gainers led losers by 149 to 147, with 52 shares holding on to the last levels.National Bank came in for active support at the lower levels followed by reports of dividend on its holding in Al-Jazeera, up by Rs9.20 at Rs265.80 on 17m shares followed by PICIC, up by Rs3.25 at Rs69 on 12m shares followed by reports of its merger with sister companies.

MCB, higher by Rs2.45 at Rs262.25 on 10m shares, OGDC, up by Rs1.05 at Rs137.55 also on 10m shares, D.G. Khan Cement, higher by Rs2.70 at Rs74.50 on 9m shares, PTCL, steady by 40 paisa at Rs46.90 also on 9m shares and Pakistan Petroleum, up by Rs2 at Rs244.50 on 6m shares.

Other actives were led by Lucky Cement, firm by 55 paisa on 6m shares, Crescent Commercial Bank, higher by 60 paisa on 5m shares and Bank Alfalah, up by Rs1.30 also on 5m shares.

FORWARD COUNTER: National Bank also led the list on the cleared list, higher by Rs9.30 at Rs266.80 on 12m shares followed by MCB, up by Rs3.35 at Rs263.35 on 7m shares and D.G. Khan Cement, higher by Rs2.50 at Rs74.50 on 6m shares.

OGDC followed them, up by 85 paisa at Rs138.05 on 5m shares and Lucky Cement, higher by 65 paisa at Rs78.35 on 4m shares.

DEAULTER COS: Unity Modaraba again led the list of actives on this counter, unchanged at 55 paisa on 0.372m shares followed by Crescent Investment Bank, steady by five paisa at Rs4.45 on 0.194m shares, while others were modestly traded on the higher side.