January 10, 2007	Wednesday	Zilhaj 19, 1427

KARACHI, Jan 9: Share market on Tuesday reacted bullishly to an extension in exemption of capital gain tax for another year as leading shares rose sharply on active short-covering, some of them closing around their upper locks.

The significant feature was that trading volume soared to an average daily level of about 200m shares in previous normal trading sessions, which had dropped to below 100m shares during the last two months of the previous year.

The KSE 100-share index shot up by 169.25 points or 1.65 per cent at 10,405.21 from 10,235.96 a day earlier, eyeing the next chart point of 11,000.00 not in distant future.

Leading base shares, notably OGDC, National Bank, MCB, PTCL and Pakistan Petroleum virtually raced toward their pre-reaction levels, some of them closing around their upper locks.

The market’s positive response to prime minister’s announcement on Monday evening at the award giving ceremony to top 25 companies was well reflected in the investors’ mood who indulged in covering purchases on counters of their choice.

The tax exemption was one of the major demands of the country’s bourses, although the prime minister also hinted at tax exemption on stamp duty and asked the Sindh chief minister to look into the matter as it was provincial subject.

“Both the current lower levels and the perception of higher earnings could keep the market in a bullish mood in the sessions to come,” analyst Ahsan Mehanti predicts, adding “but how the market will react to the rumours about hike in interest rates is anybody’s guess”.

The current buoyant mood of the banking sector apart from the higher earnings and expectations of enhanced payouts was attributed to rumours of modest increase in interest rates, he added.

But some others said the boost was psychological and may well prove short-lived as the market was still facing some technical problems, which could cause interruptions in the rising trend.

Among the leading gainers, Dawood Hercules and National Bank, were leading, up by Rs5.05 and Rs12. They were followed by Pakistan Petroleum, PSO, IGI Insurance, OGDC, Engro Chemical, Askari Bank and MCB, which were quoted higher by Rs3 to Rs4.60.

Pak-Suzuki Motors and Fateh Textiles were prominent among the losers, off Rs5.50 and Rs25. Other prominent losers included Indus Dyeing, Attock Petroleum, Callmate Telips, Suzuki Motors, Jahangir Siddiqui & Co, and Gatron Industries, off Rs3.10 to Rs5.50.

Trading volume soared to 190m shares from the previous 119m shares as gainers held a strong lead over the losers at 156 to 136, with 41 shares holding on to the last levels.

OGDC topped the list of most actives, up by Rs4 at Rs118.80 on large volume of 49m shares followed by National Bank, sharply higher by Rs12 at Rs252.80 on 21m shares, PTCL, up by 55 paisa at Rs48.05 on 13m shares, Pakistan Petroleum, higher by Rs3.60 at Rs239.60 on 13m shares, MCB, up by Rs4.50 at Rs262.50 on 9m shares, Bank Alfalah, firm by 50 paisa at Rs44.75 on 6m shares and Faysal Bank, higher by Rs1.80 at Rs63.50 on 5m shares.

Other actives were led by D.G. Khan Cement, higher by Rs1.60 on 10m shares followed by Bank of Punjab, up by Re1 on 8m shares and Lucky Cement, firm by 90 paisa on 6m shares.

FORWARD COUNTER: OGDC also led the list of actives on this counter, higher by Rs4.20 at Rs119.50 on 12m shares, followed by National Bank, sharply higher by Rs12.05 at Rs253.80 on 11m shares and MCB, up by Rs4.25 at Rs263.50 on 9m shares, Pakistan Petroleum, higher by Rs4.65 at Rs241.15 on 4m shares and Lucky Cement, steady by 75 paisa at Rs60.30 on 3m shares.

DEFAULTER COS: Trading activity also picked on this counter in sympathy with the ready section where Japan Power came in for modest support and rose by five paisa at Rs3.90 on 0.266m shares, while Nimir Chemicals attracted fresh selling and was marked down by 15 paisa at Rs3 on 0.479m shares.

Zeal Pak Cement followed them, easy by five paisa at Rs4.20 on 0.152m shares, while Unity Modaraba was quoted unchanged at 60 paisa on 0.180m shares. Others showed fractional changes.