April 05, 2007	Thursday	Rabi-ul-Awwal 16, 1428

KARACHI, April 4: Share market on Wednesday failed to extend the Tuesday’s snap rally as follow-up support turned shy in the absence of strong institutional support and other positive supporting factors. The KSE 100-share index fell by 17.88 points at 11,414.86.

A significant increase in the volume figure to an average respectable total of 233m shares reflects that a change is visible in the buying strategy of investors.

That is perhaps why the broader market performed well under the lead of cement and bank shares signalling that the oil shares could join the run-up even from Thursday as most of them are still ruling far below their fair values.

The clearance by the SECP of leading brokerage houses from their suspected involvement in market crash of 2005 should have boosted the market sentiment, analysts said, adding that but the Tuesday’s rally proved short-lived in the absence of follow-up support.

Larger fall was, however, averted as day traders and bargain-hunters were buyers at the dips as lower levels of some of the blue chips still ensure good capital gains.

After having risen by over 156 points or 1.3 per cent in Tuesday’s snap rally, the KSE 100-share index suffered a modest fall of 17.86 points at 11,414.88 as compared to 11,432.74 a day earlier as some of the leading base shares came in for active selling at the higher levels.

The 30-share index on the other hand fell fractionally by 4.91 points at 14,210.54 as against previous 14,215.45 points.

“No one could deny the fact that being in a highly oversold position the market needs a massive technical push aided by a combined operation of both the local financial institutions and the foreign funds,” a leading analyst Asfraf Zakria said, adding “but both are a bit shaky about the future market outlook”.

Ongoing judicial crisis appears to be the chief factor behind the investor hesitancy and his reluctance to go beyond the manageable risk options, said Ahsan Mehanti.

The judicial crisis could drag on for weeks keeping in view the current pace of hearing but investors and brokers may not like to sit on the sidelines for an indefinite time and are expected to be back in the market during the next couple of sessions.

Leading gainers were led by Rafhan Maize, up by Rs70 followed by EFU General, Thal Industries, Attock Cement, Pakistan Engineering, Glaxo-SKF, ICI Pakistan Hotels, National Foods and Al-Ghazi Tractors, which posted gains ranging from Rs4.20 to Rs8.80.

Losers were led by Fateh Textiles and Wyeth Pakistan, off Rs10 and Rs39. Other prominent losers were included IGI Insurance, Quetta Textile, HinoPak Motors, Pakistan Oilfields, Pak-Suzuki Motors, PSO, AKD Securities and JS Global, off by Rs3 to Rs7.95.

Turnover figure rose to 233.170m shares form the previous 157m shares as some of the blue chips came in for active buying and gainers held a fair lead over the losers at 161 to 135, with 36 shares holding on to the last levels.

Fauji Fertiliser was one of the most active scrips, up by 95 paisa at Rs33.15 on 35m shares followed Lucky Cement, higher by Rs3.20 at Rs86.70 on 33m shares, D.G. Khan Cement, up by Rs2.50 at Rs92.50 on 25m shares, Bank of Punjab, higher by Rs1.55 at Rs90.95 on 14m shares, OGDC, lower by Rs1.15 at Rs117 on 12m shares and National Bank, up by 90 paisa at Rs236.60 on 8m shares.

Other actives were led by Askari Bank, higher by Rs1.70 on 9m shares, JS Bank steady by 35 paisa on 5m shares and Hub-Power unchanged also on 5m shares.

FORWARD COUNTER: Lucky Cement also came in for active support on the cleared list and was quoted higher by Rs3.10 on 11m shares, D.G.Khan Cement, up Rs2.35 at Rs93.10 on 8m shares and Fauji Fertiliser Bin Qasim, firm by Rs1.05 at Rs33.40 on 7m shares.

They were followed by National Bank, steady by 55 paisa at Rs237.90 on 4m shares and OGDC, lower by Re1 at Rs116.70 on 4m shares.

DEFAULTER COS: Norrie Textiles came in for active selling at the overnight rise and was marked down by 15 paisa at Rs2.40 on 0.893m shares followed by Zeal-Pak Cement, firm by five paisa at Rs5.50 on 0.345m shares and Mukhtar Textiles, higher by 40 paisa at Rs3.20 on 0.110m shares.

DIVIDEND: American Life Assurance, cash five per cent, Gharibwal Cement, right shares 34.908 per cent and IGI Investment Bank, right shares at the rate of 100 per cent.