April 04, 2007	Wednesday	Rabi-ul-Awwal 15, 1428

KARACHI, April 3: Share market on Tuesday staged a smart snap rally as leading scrips recovered across-the-board on strong buying by both the financial institutions and the foreign investors aided by data relaxations for the brokers on the market crash of 2005. The recomposed KSE 100-share index recovered 156.23 points at 11,432.74.

The recovery was led by bank, oil and cement shares aided partly by technical factors and partly to reports of some positive developments and relaxations on the ongoing probe against the alleged leading players of the market crash of 2005.

All of them are linked to selling shares above Rs50bn on the forward counter but did report to the SECP despite its demand to comply with. They are now allowed to show only record of transactions to the probe team. “But any future violation will invite action under the rules,” the SECP warned.

An idea of positive investor reaction to the relief may well be had from the fact that the floating stocks of leading shares as some of them ended around their upper locks under the lead of National Bank, which has been under pressure since being ex-dividend and ex-bonus.

The KSE 100-share index rose by 156.23 points or 1.39 per cent at 11,432.74, while its junior partner 30-share index was quoted higher by 210.94 points at 12,215.45 points against their base of 1,000 and 10,000 points respectively.

The market capital swelled to well over Rs41bn to Rs3,106.00bn as heavily-capitalised shares rose in unison on strong buying.

Stock analyst Ahsan Mehanti attributed the return of the bulls to the arena to Securities and Exchange Commission of Pakistan’s (SECP) move to go slow against the chief players behind the market crash of 2005, which wiped out $13 billion out of the investment of the small savers in the share business.

Although SECP warns the future violators of the rules that the current relaxation is only for the ongoing official probe against the reportedly erring brokers who were issued notices some months back.

“The snap rally seems to have given a pleasant surprise to mostly leading analysts who predicted a sluggish opening owing to resumption of hearing against the Chief Justice,” analyst Hasnain Asghar Ali said.

Investors were not deterred by the peaceful protest of lawyers while the hearing in the presidential reference was on in the Supreme Court.

But the market demonstrated in more than one ways its chief worries related to SECP regulatory steps rather than external factors, he added.

Leading gainers were led by Indus Motors and Rafhan Maize Products, up by Rs10.85 and Rs20, Nestle Pakistan, National Foods, National Bank, United Bank and Pakistan Services, up by Rs5 to Rs9. There were other many good gainers also.

Losses on the other hand were mostly fractional barring Bhanero Textiles, Sanofi-Aventis, Mirpurkhas Sugar, followed by Fateh Textiles and Lakson Tobacco, off Rs4 to Rs9.

Trading volume showed sharp increase at 167m shares from the previous 59m shares as gainers held a strong lead over the losers at 195 to 91, with 42 shares holding on to the last levels.

Fauji Fertiliser Bin Qasim topped the list of actives, steady by 30 paisa at Rs32.20 on 18m shares, Lucky Cement, higher by Rs3.85 at Rs83.50 on 15m shares, PTCL, up by Rs2.05 at Rs50.05 on 12m shares, National Bank, higher by Rs6.50 at Rs235.70 on 11m shares, OGDC, firm by 20 paisa at Rs118.70 on 9m shares, D.G.Khan Cement, up by Rs2.55 at Rs90 also on 9m shares and Bank of Punjab, higher by Rs2.40 at Rs89.40 on 8m shares.

They were followed by Fauji Cement, steady by 65 paisa on 7m shares, Pakistan Petroleum, higher by Rs3.65 on 5m shares and Pakistan Oilfields, up by Rs4 at Rs323 also on 5m shares.

FORWARD COUNTER: Lucky Cement came in for active short-covering and was marked up by Rs3.80 at Rs83.80 on 5m shares followed by National Bank, higher by Rs6.45 at Rs237.35 also on 5m shares and PTCL, up by Rs1.60 at Rs50 on 4m shares.

Bank of Punjab followed them, up by Rs2.80 at Rs89.90 on 3m shares and MCB, higher by Rs3.60 at Rs272.50 also on 3m shares.

DEFAULTER COS: Active trading was also witnessed on this counter as some of the shares came in for strong support and rose under the lead of Norrie Textiles, and Crescent Standard Bank, up by 15 and 60 paisa at Rs2.55 and Rs4.15 on 0.805m and 0.677m shares respectively.

Unity Modaraba followed them, steady by five paisa at Rs0.55 on 0.278m shares and Zeal-Pak Cement, up by 15 paisa at Rs5.45 on 0.149m shares. Quice Foods was traded higher by 10 paisa at Rs3.60.

DIVIDEND: Highnoon Labs, final cash 15 per cent, bonus of the same amount.

BOARD MEETINGS: Faran Sugar and Union Insurance on April 5, Fauji Fertiliser Bin Qasim on April 19.