January 11, 2007	Thursday	Zilhaj 20, 1427

KARACHI, Jan 10: The share market on Wednesday failed to sustain the overnight run-up as buying euphoria associated with the tax exemption on capital gains faltered half way in the absence of active follow-up support.

But floor brokers said the reaction was technical and did not reflect the market’s ability to sustain it and no one should think that it may not resume its upward drive after having met its clearing demands as all basic fundamentals point to bull-run.

The KSE 100-share index suffered a modest fall of 30.85 points at 10,374.36 as compared to 10,451.21 a day earlier, reflecting the weakness of OGDC, National Bank and MCB as they finished below their overnight highs.

The extension in tax exemption will, however, continue to inspire fresh buying on many counters despite the fact of a “loud whispering in some quarters against it on the ground that the

richest people again escaped the tax-net”, says a leading investor.

Banking sector followed by leading oil shares again led the market decline despite reports of higher earnings for the year ended Dec 31, 2006 did not allow investors to hold on to the overnight positions followed by profit-taking by the bargain-hunters, analysts said.

“But the advent of foreign fund buying on selected oil shares at their current lows is expected to trigger sympathetic support on other counters where the potential of capital gains is almost ensured after the market resumes its upward thrust again”, they said.

The current recovery tempo could be further accelerated in the weeks to come, although much will depend on the size of foreign buying and their portfolios, some others said.

However, one thing appears certain that the new year rally could be carried forward in the coming weeks on the strength of higher corporate payouts and partly to the current lower levels attained by most of the leading shares and are in the target area of the capital gains.Among the leading gainers Gillette Pakistan and Grays of Cambridge were leading, up Rs7.45 and 8.50, followed by Lakson Tobacco, Sitara Chemicals, Agriauots, Pak-Suzuki Motors, Javed Omer, Dawood Hercules and Jahangir Siddiqui and Co, up by Rs3 to 5.70.Prominent losers were led by Wyeth Pakistan and Siemens Pakistan, off Rs24.90 and 25, respectively. They were followed by Mehmood Textiles, National Refinery, Merit Packaging, Clover Pakistan, Mitchell’s Fruits, Pakistan Refinery, EFU Life and Jahangir Siddiqui Fund, off Rs3.25 to 9.70.

Trading volume was maintained on the higher side at 157m shares but losers held a fair lead over the gainers at 156 to 130, with 41 shares holding on to the last levels.

OGDC again led the list of

actives, off Rs1.05 at Rs117.75 on 21m shares, National Bank, easy by Rs1.20 at Rs251.60 on 14m shares, Bank of Punjab, up 25 paisa at Rs106.70 on 13m shares, D.G.Khan Cement, firm by Rs1.40 at Rs67.50 also on 13m shares, MCB, lower 60 paisa at Rs262 on 10m shares, PTCL, easy 55 paisa at Rs47.50 on 8m shares and Pakistan Petroleum, off Rs2.60 at Rs237 on 5m shares.

Other actives were led by Nishat Mills, higher by Rs2.45 on 10m shares, Lucky Cement, up Rs3 on 8m shares and KESC, easy 25 paisa on 4m shares.

FORWARD COUNTER: National Bank came in for active profit-selling at the higher levels and fell by 95 paisa at Rs252.95 on 8m shares followed by MCB, lower by Rs1.10 at Rs262.40 on 7m shares and OGDC, easy Rs1.20 at Rs118.30 on 5m shares.

Lucky Cement followed them, higher by Rs3 at Rs63.30 on 4m shares and D.G.Khan Cement, up Rs1.80 at Rs68.20 on 3m shares. Others were modestly traded.

DEFAULTER COS: Nimir Chemical came in for modest selling and ended lower by five paisa at Rs2.95 on 0.335m shares followed by Unity Modaraba, unchanged at 60 paisa on 0.245m shares. Japan Power on the other hand was traded higher by 15 paisa at Rs4.05.DIVIDEND: Al Falah, GHP Value Fund, bonus shares at the rate of 10 per cent.