March 30, 2007	Friday	Rabi-ul-Awwal 10, 1428

KARACHI, March 29: Leading shares on the Karachi Stock Exchange on Thursday came in for modest short-covering at the lower levels but failed to put the market back on the rails as leading financial institutions again adhered to the sidelines.

The continued weakness of the leading oil shares, notably PSO, Pakistan Oilfields and some others weighed heavily against the sentiment and did not allow consolidation forces to play their role, brokers said.

They said investors were apparently awaiting the advent of foreign buying at the current lower levels, notably on the oil sector and once they re-enter both the indices and leading shares could witness a major change in their present stance.

Although the market has absorbed much of the negative fallout of the new exposure margins on the Cash Settled Future (CSF) contracts, some other depressants including judicial crisis continued to take their toll on some of the sectors.

The market’s turn for the better is also well-reflected in the KSE 100-share index, which ended with a fresh modest fall of 12.05 points at 11,221.51 after having hit the session’s high of 11,250.34 and low of 11,126.63 points.

But the weakness of MCB, OGDC and PTCL kept the index in the minus column despite credible performance of the National Bank and some other leading base shares.

Indications are that investors will back on the market by the next week after the hearing in the presidential reference resumes on April 3.

“A loud whispering in the market corridors followed by rumours of an out-of-the-court settlement of the judicial issue is expected to revive the normal activity possibly by the next week,” analysts said.

The interesting feature was that some of the hereto inactive shares, notably Dewan Salman and some other came in for modest short-covering reflecting that investors were not inclined to stay in the market without taking even calculated risks, they added.

Losing shares maintained a fair lead over the gainers but some of the leading shares managed to finish with modest gains under the lead of Shaheen Insurance and BOC Pakistan, up by Rs5.15 and Rs5.25, they were followed by Berger Paints, Pakistan Hotels, National Bank, United Bank, National Foods and Javed Omer, up by Rs2.40 to Rs4.50.

Bata Pakistan and IGI Insurance on the other hand fell by Rs6.10 and Rs10.10 respectively. Other prominent losers were led by Central Insurance, PSO, Pakistan Engineering, Treet Corporation, Sanofi-Aventis, Attock Petroleum and Pakistan Oilfields, off by Rs3.40 to Rs6.

Trading volume showed a modest increase at 115m shares from the previous 103m shares as gainers trailed far behind losers at 126 to 171, with 46 shares holding on to the last levels.

Fauji Fertiliser topped the list of actives, up by Re1 at Rs31.85 on 19m shares followed by National Bank, sharply higher by Rs2.40 at Rs230 on 9m shares, OGDC, easy 15 paisa at Rs117.60 on 8m shares, Bank of Punjab, easy 45 paisa at Rs86.55 on 6m shares, Lucky Cement, firm by 35 paisa at Rs79.55 on 5m shares, D.G. Khan Cement, higher by 95 paisa at Rs86.95 on 5m shares and MCB, lower by Rs1.35 at Rs268.10 on 4m shares.

Other actives were led by PTCL, down 25 paisa at Rs47.05 on 4m shares, Bank Alfalah, lower by 40 paisa also on 4m shares and Dewan Salamn, up by 25 paisa on 3m shares.

FORWARD COUNTER: National Bank also came in for active short-covering on the cleared list and was quoted higher by Rs2 at Rs232 on 6m shares, OGDC, lower 24 paisa at Rs117 also on 6m shares, Bank of Punjab, easy 40 paisa at Rs86.45 on 4m shares and Bank Alfalah, lower 51 paisa at Rs44.45 also on 4m shares.

DEFAULTER COS: The trading activity on this counter showed a modest expansion but price movements remained two-sided amid alternate bouts of buying and selling.

Crescent Standard Bank topped the list of actives, off 25 paisa at Rs3.25 on 0.944m shares followed by Nimir Chemical, unchanged at Rs2.45 on 0.215m shares and Norrie Textiles, easy five paisa at Rs2.95 on 0.130m shares. Unity Modaraba was held unchanged at Rs0.55 on 0.115m shares.

DIVIDEND: Pakistan Reinsurance Company cash 20 per cent plus bonus shares of the same amount.

BOARD MEETINGS: Gharibwal Cement on April 2, Saif Textiles, on April 3, United Insurance on April 4, Ados Pakistan on April 5 and Packages on April 19.