April 06, 2007	Friday	Rabi-ul-Awwal 17, 1428

KARACHI, April 5: The stock market on Thursday shrugged off the overnight hesitancy as investors resumed covering operations amid market talk of strong presence of foreign buyers on the banking and oil counters. The KSE 100-share index soared by 181.22 points or 1.59 per cent at 11,596.08 and market capital by Rs46.424 billion at Rs3,160bn. While the KSE 30-share index was marked up by 273.97 points at 14,484.51 points.

Although it was pretty difficult to pinpoint the size of foreign portfolio buying, progressive increase in the trading volume to well over an average figure of 200m shares reflected it was there though on selective counters.

“It was a judicious blend of both local and foreign buying,” says a leading stock analyst Ashraf Zakria said, adding “sharp increase in SCRA accounts over the last couple of weeks reflects foreign buying is here on a massive scale apparently ignoring external factors”.

The scramble for selected shares was so strong that investors ignored some of the negative factors, notably warning of the National Assembly’s standing committee on the 2005 market crash to the SECP seeking clarification about the withdrawal of notices to the brokers allegedly involved in short-selling.

“I think the index is heading towards its previous all-time peak level of above 12,200 points (base 1,000 points) despite the presence of some psychological depressants,” a leading analyst Faisal Abbas said, adding “strong presence of dividend-linked buying support may not allow it to fall from the current levels technical corrections here and there notwithstanding”.

Analysts said some positive developments including clearing of leading brokerage houses from the alleged charges of short-selling lured investors back in the market.

Investors now ought to be back in the market as most of their technical irritants have been removed by the Securities and Exchange Commission of Pakistan (SECP), they said.

Much of the activity remained confined to cement on reports of a massive increase in exports during March 2007, followed by bank and leading oil shares.

Leading gainers were led by Indus Motors and Thal Industries, up by Rs12.60 and Rs10.20. Other notable gainers included National Bank, MCB, IGI Insurance, PSO, Shell Pakistan, Pakistan Petroleum, Nestle Pakistan and National Foods, up by Rs6.95 to Rs10.

Prominent losers included Fateh Textiles and EFU Life Assurance, off Rs10 and Rs9.85 followed by Sitara Chemicals, Al-Ghazi Tractors, Sanofi-Aventis, Mirpurkhas Sugar and Bata Pakistan, which suffered fall ranging from Rs2 to Rs4.50.

Trading volume showed a fresh modest increase at 243.101m shares as compared to 233m shares a day earlier as gainers held a strong lead over the losers at 207 to 115, with 43 holding on to the last levels.

Bank of Punjab topped the list of actives, up by Rs2.65 at Rs93.60 on 22m shares followed by Bank Alfalah, higher by Rs1.80 at Rs47.50 on 21m shares, National Bank, up by Rs6.95 at Rs243.55 on 17m shares, Lucky Cement, firm by Rs2.10 at Rs88.80 on 15m shares, D.G. Khan Cement, steady by 25 paisa at Rs92.75 on 11m shares and OGDC, higher by Rs1.30 at Rs118.85 also on 11m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, steady by five paisa on 11m shares, Fauji Cement up 55 by paisa on 10m shares and Askari Bank, higher by Rs1.30 on 8m shares.

FORWARD COUNTER: National Bank led the list of actives on this counter, up by Rs6.90 at Rs244.85 on 6m shares followed by Lucky Cement, higher by Rs1.10 at Rs87 also on 6m shares and Bank Alfalah, up by Rs1.80 at Rs47.80 on 6m shares.

Bank of Punjab followed them, higher by Rs2.45 at Rs93.90 on 5m shares and Pakistan Petroleum, higher by Rs7.85 at Rs256.70 also on 5m shares.

DEFAULTER COS: Norrie Textiles led the list of actives on this counter and rose by 15 paisa at Rs2.55 on 0.457m shares followed by Nimir Chemicals, unchanged at Rs2.50 on 0.388m shares and Unity Modaraba, steady five paisa at 60 paisa on 0.308m shares. National Asset Leasing rose by Re1 at Rs1.60 on 0.153m shares.

DIVIDEND: Ittefaq General Insurance, bonus shares 20 per cent, United Insurance, bonus 10 per cent, Ados Pakistan, cash 10 per cent, Crescent Star Insurance, bonus 10 per cent, Metropolitan Insurance, right shares 10 per cent, Saif Textiles, right shares 39.65 per cent and Asia Insurance, nil.