KARACHI, Dec 6: The KSE 100-share index on Wednesday posted fresh sharp gain of 127.22 points as leading base shares came in for active follow-up support under the lead of MCB, which finished well above its upper lock after being quoted ex-dividend.The centre of covering purchases has shifted to the banking sector from the oil shares partly because of their attractively lower levels and partly to reports of higher earnings for the year ending Dec 31, 2006.

Active short-covering in the leading bank shares under the lead of National Bank and MCB and all other index heavy weights, notably OGDC amid reports that its GDR was listed on the London Stock Exchange on Wednesday (Nov 6, 2006) and trading commenced also evoked good interest at the lower levels and finished higher.

The sharp increase in the traded volume at 253m shares though still blow the normal daily figures after weeks of modest totals shows a major change in the investor priorities but it no way suggests that the year-end short-covering has made its debut, brokers said.

The KSE 100-share index posted a fresh gain of 127.22 points at 10,677.38 as compared to previous 10,550.1. The MCB, which holds largest weightage of 11 per cent in it added significantly to the rise as it ended around its upper lock, up Rs10 at Rs256.The KSE 30-share index also rose by 144.29 points at 13,536.76 points, reflecting the strength of base shares.

OGDC, PTCL, Faysal Bank and some other followed them finishing partially recovered amid higher volumes, mostly at the higher levels.

“The sharp increase in the index reflects that leading bulls are back in the market and are covering positions at the lower levels on those counters where the potential of capital gains is almost assured,” analyst Hasnain Asghar Ali said.

But another analyst Ahsan Mehanti said essentially it was the advent of the foreign buying in some leading bank and oil shares, which triggered sympathetic buying by the local punters.

“There could be more than one reasons behind the market’s sustained run-up including technical factors and its oversold position, the notable feature is that it is responding to its technical demands rather than political situation,” Faisal A. Rajabali said.

Plus signs further extended their lead, notable gainers being Nestle Pakistan and IGI Insurance, up by Rs43.95 and 18.50, followed by Dawood Hercules and Wyeth Pakistan, off Rs14.95 and 58, respectively.

Trading volume rose to 253m shares from the previous 165m shares as gainers maintained a strong lead over the losers at 222 to 127, with 38 shares holding on to the last levels.

Faysal Bank topped the list of actives, higher by Rs3.25 at Rs68.55 on 20m shares, OGDC, firm by Rs1.25 at Rs123.25 on 19m shares, National Bank, higher by Rs3 at Rs266.20 on 18m shares, Bank of Punjab, steady by Rs2.75 at Rs106.85 on 16m shares, Pakistan Oilfields, up Rs2.30 at

Rs370.20 on 14m shares, PTCL, steady by 20 paisa at Rs47 on 13m shares and MCB, sharply higher by Rs10 at Rs256 on 12m shares.

Other actives were led by Faysal Bank, firm by 55 paisa on 15m shares, Fauji Fertiliser Bin Qasim, up 85 paisa on 14m shares and Pakistan Petroleum, easy 15 paisa on 8m shares.

FORWARD COUNTER: National Bank was actively traded on this counter and rose by Rs2.75 at Rs267.10 on 10m shares followed by OGDC, up Rs1.35 at Rs122.35 on 9m shares and MCB, sharply higher by Rs6.50 at Rs256.75 on 8m shares.