April 07, 2007	Saturday	Rabi-ul-Awwal 18, 1428

KARACHI, April 6: Stocks on Friday remained in the tight grip of bulls for the second session in a row as investors were not inclined to miss the bandwagon led by the foreign funds and continued to make fresh covering purchases at the current levels. The KSE 100-share index posted a fresh good gain of 59.56 points at 11,655.64.

The robust finish at the weekend session reflected that speculative traders were not inclined to take even an overdue breather warranted by technical factors. Unlike the overnight flare-up, price changes in leading cement shares were modest but in no way indicate that the run up was overdone. PSO, Pak-Suzuki and Indus Motors on the other hand maintained their upward drive.

“Strong presence of some leading foreign funds on selected counters continued to inspire fresh speculative buying by the locals as no one among them is inclined to miss an attractive bait of quick capital gains,” they added.

The KSE 100-share index posted a fresh sharp rise of 59.56 points at 11,655.64 points as compared to previous 11,596.08 points as all the leading base shares tended further higher under the lead of National Bank, MCB, OGDC, Pakistan Petroleum and leading cement shares.

The KSE 30-share index also posted a sharp rise of 79.93 points at 14,564.44 as compared to 14,484.51 points on Thursday.

The significant development of the week was sharp increase in the daily volume, which steadily rose to 294m shares after having fallen earlier to a total of 59m shares.

Unlike the previous weekend sessions when prices generally tended lower on profit-selling by the jobbers and the day-traders, there were no signs that the current run-up initiated by the foreign buying was overdone at least for the next couple of weeks, technical corrections here and there notwithstanding.

The market should have reacted bearishly to negative news related to clearance of leading brokers of short-selling by the SECP and the explanation sought by the national assembly committee on the market crash of 2005, but investors ignored it.

“Bears seem to have been sidelined at least for the near-term,” analyst Ashraf Zakaria said, adding “no one is in a mood to miss the bandwagon led by the foreign funds for obvious reasons”.

But analyst Faisal Abbas said investors should play safe and did not go beyond the danger zone as political situation was not that encouraging for taking undue risks at this stage.

The chief target of the foreign investors was some of the leading oil and bank shares, which still ensure higher capital gains even on short-term basis.

PSO again responded positively to positive developments on its sell-off front on the forward counter followed by Pakistan Petroleum and OGDC, which also came in for active support at the current lower levels.

Leading gainers were led by Siemens Pakistan, Thal Industries, IGI Insurance, Indus Motors and Pak-Suzuki Motors, which posted gains ranging from Rs10 to Rs25.65.

Other good gainers included Shaheen Insurance after bonus shares at the rate of 75 per cent, Pakistan Engineering, Millat Tractors, Clover Pakistan, Clariant Pakistan and EFU Life, up by Rs5.25 to Rs9.85.

Losses on the other hand were mostly fractional barring Pakistan Refinery, Bata Pakistan, Mirpurkhas Sugar and Gillette Pakistan, off by Rs2.70 to 5.95.

Trading volume was maintained on the higher side at 246m share as compared to 243m shares a day earlier as gainers maintained a strong lead over the losers at 185 to 100, with 40 shares holding on to the last levels.

Lucky Cement topped the list of actives, higher by Rs4.30 at Rs91.10 on 35m shares followed by Fauji Cement, steady by Re1 at Rs19.25 on 34m shares, Fauji Fertiliser Bin Qasim, firm by 30 paisa at Rs33.50 on 19m shares, D.G. Khan Cement, up by Rs1.50 at Rs94.25 on 17m shares, OGDC, steady by 40 paisa at Rs119.25 on 16m shares, National Bank, up by 60 paisa at Rs244.15 on 15m shares and Bank of Punjab, off Rs1.05 at Rs92.55 on 15m shares.

Other actives were led by Pakistan Petroleum, firm by 25 paisa on 13m shares, Maple Leaf Cement, up by 75 paisa also on 13m shares and PICIC, higher by Rs1.95 on 12m shares.

FORWARD COUNTER: Lucky Cement came in for fresh support and led the list of actives on the cleared list, up by Rs4.35 at Rs91.35 on 10m shares followed by OGDC, steady by 30 paisa at Rs118.20 on 8m shares and PSO, sharply higher by Rs10.70 at Rs369.45 on 7m shares.

They were followed by National Bank, up by 15 paisa at Rs245 on 5m shares and D.G. Khan Cement, up by Rs1.70 at Rs95 also on 5m shares.

DEFAULTER COS: Norrie Textiles came in for active buying at the lower levels and rose by 65 paisa at Rs3.20 on 2.110m shares followed by National Asset Leasing, also up by 65 paisa at Rs2.25 on 0.477m shares and Zeal-Pak Cement, unchanged at Rs5.50 on 0.444m shares.

Japan Power followed them, steady 10 paisa at Rs3.80 on 0.201m shares and S.S. Oil, up by 35 paisa at Rs6.35 on 0.174m shares.

DIVIDEND: Shaheen Insurance, bonus shares at the rate of 75 per cent, Standard Chartered Bank and Prime Bank, both nil.