December 05, 2006	Tuesday	Ziqa'ad 13, 1427

KARACHI, Dec 4: The stock market was back on the rails on Monday as investors covered positions on selected counters under the lead of oil and cement shares aided by restoration of rebate on exports but the weakness of the banking sector weighed heavily against the underlying sentiment.

However, investors seem to have digested the negative fallout of the lower GDS price of the OGDC as was reflected by the relative strength of its share and absorption of fresh selling.

The KSE 100-share index in part recovered a modest portion of last Friday’s massive fall of 231 points and was quoted at 10,416.00 as compared to previous 10,388.19, up by 27.81 points.

The KSE 30-share index followed it, up by 89.85 points at 13,221.17.

There was no trace of the weekend session’s panic caused by below market expectations ‘strike price’ of GDS as some of the bargain-hunters and institutional traders made modest covering purchases at the lower levels on selected counters.

“I think the worst may be over now as investors and punters have second thoughts on the fair value of the OGDC during the post-GDS trading,” leading analysts said

“The talk of another lower lock now appears to be distant possibility as a section of financial traders are purchasing it at the current level”. After having fallen to Rs117 at one stage, its share value was last quoted at Rs119.10, off Rs1.75.

However, buying support failed to gain in stature until the closing bell as brokerage houses remained conspicuous by their absence as leading shares notably MCB came in for fresh selling and fell sharply.

“The credit for initiating the recovery process largely goes to the cement sector, which in unison attracted strong support at the lower levels followed by reports of restoration of rebate on exports,” an analyst said, adding “Lucky Cement, D.G. Khan Cement and Fauji Cement were among the leading gainers and trend-setters”.

At the current lower levels and rebound in international oil prices, oil giants could attract any amount of short-covering and could put the market back on sound footing, he added.

But the weakness of the banking shares on selling triggered by the central bank governor’s directive to narrow the banking spread by enhancing the rate of return on deposits would continue to have negative impact on their share values, some others said.

Among the gainers, Rafhan Maize and Wyeth Pakistan were prominent, up by Rs23.50 and Rs96 respectively, followed by Arif Habib Securities, Pakistan Petroleum, Pakistan Oilfields, Attock Petroleum, Al — Ghazi Tractors, Millat Tractors, Pak-Suzuki Motors, Pakistan Cables, Dawood Hercules and Shell Pakistan, which posted gains ranging from Rs4 to Rs14.90.

EFU General and MCB were leading among the losers, off Rs7.40 and Rs7.70. Other prominent losers included Atlas Insurance, Gatron Industries, HinoPak Motors, Jahangir Siddiqui & Co, which fell by Rs3.90 to Rs5.85.

Trading volume was held at the weekend level of 125m shares but gainers forced a lead over the losers at 186 to 115, with 35 shares holding on to the last levels.

The most active list was topped by Callmate Telips, higher by Rs4.65 at Rs101.85 on 16m shares, OGDC, lower Rs1.71 at Rs119.10 on 9m shares, D.G. Khan Cement, up by Rs2.50 at Rs74.50 on 8m shares, PICIC, higher by Rs1.70 at Rs74.20 also on 8m shares, National Bank, unchanged at Rs265 on 6m shares, Lucky Cement, higher by Rs3.70 at Rs77.95 on 5m shares and Pakistan Oilfields, up by Rs6.50 at Rs354 on 4m shares.

Other actives were led by MCB, off Rs7.70 on 4m shares, Fauji Cement, firm by 95 paisa also on 4m shares and WorldCall, steady by 60 paisa on 3m shares.

FORWARD COUNTER: OGDC came in for modest selling and was quoted lower by Rs2.25 at Rs118 on 5m shares followed by MCB, off Rs3.40 at Rs244.60 also on 5m shares and National Bank, up by 32 paisa at Rs266.80 on 5m shares.

Lucky Cement followed them, higher by Rs1.70 at Rs76.30 on 3m shares and D.G. Khan Cement, up by Rs2.40 at Rs75.10 also on 3m sharers.

DEFAULTER COS: Active trading was witnessed on this counter as some of the actives came in for active bouts of buying and selling under the lead of Redco Textiles, up by 10 paisa at Rs0.85 on 1.108m shares followed by Norrie Textiles, lower 10 paisa at Rs3.90 on 1.112m shares and Crescent Investment Bank, firm by 15 paisa at Rs5.30 on 0.473m shares.

Other actives were led by Asset Investment Bank, higher by Re1 at Rs5 on 0.388m shares and Mukhtar Textiles, easy by 20 paisa at Rs3.05 on 0.135m shares.