April 17, 2007	Tuesday	Rabi-ul-Awwal 28, 1428

KARACHI, April 16: The KSE 100-share index on Monday finally broke the psychological barrier of 12,000 points on active buying in oil, cement and banking shares ahead of their board meetings and market talk of higher dividend and stood firm above it.It finally ended at 12,004.59 as compared to previous 11,977.74, up 26.85 points after hitting the session’s high and low at 12,053.30 and 11,962.40, respectively. The KSE 30-share index also rose by 19.99 points at 14,928.76 points.

The breakthrough came after a year’s erratic wandering but was outstanding in more than one ways against its previous meteoric rise to the all-time high index level on 12,336 hit in March 2006.

“But the current feat is more important as it came in the prevailing charged political atmosphere, having in its fold a lot of psychological depressants, reminiscent of March 2005 and June 2006 market crash of 32 per cent,” analyst Hasnain Asghar Ali said.

In June last year, it received massive battering followed by negative rumours, including default of some members and at one stage fell below the resistance level of 10,000 points, he added.

The three major corrections were; one in March of 1,100 points, or 10 per cent, followed by 32 per cent or 3,500 points and the third 15 per cent or 1,600 points, an average fall being 20 per cent over the year followed by a massive recovery during the first four months of the current year.

The fact that investors both local and foreign followed the positive market fundamentals rather than toeing the line of uncertain political conditions and conflicting rumours, reflects that market players seem to have decided to go alone led by the corporates, Analyst Ahsan Mehanti said.

But opinions are divided over its future direction. Some predict it could build-up strong base above this levels but some others think the prevailing political situation may not allow to keep above this level as weaker links of the strong bull lobby could resort to profit-selling any time in an overbought market.

The rally this time was led by the cement sector followed by banking and oil shares, strong presence of foreign fund buying being main stay behind the current price flare-up, some others said.

Pakistan Services and Indus Motors topped the list of gainers, up by Rs14 and Rs13.90, followed by Dawood Hercules, Arif Habib Securities, Atlas Honda, Pakistan Cables, HinoPak, Thal Jute, Pakistan Refinery, National Refinery, and Colgate Pakistan, which posted gains ranging from Rs6 to Rs12.85.

Treet Corporation and Shell Pakistan were among the leading losers, off Rs11.30 and Rs14. Others, which also fell included J.S.Global, Shaheen Insurance, Fazal Textiles, Ferozsons Lab, AKD Securities, and Nestle Pakistan,, which were marked down by Rs5 to Rs9.95.

Shell Pakistan fell on selling ahead of its board meeting amid conflicting rumours ahead of official word on its earnings.

Trading volume rose to 284m shares from the previous 228m shares as gainers held a strong lead over the losers at 179 to 148, with 39 shares holding on to the last levels.

D.G.Khan topped the list of actives, up 3.90 at Rs99.40 on 38m shares followed by Bank Al Falah, higher by Rs2.50 at Rs52.60 on 23m shares, Lucky Cement, firm by 80 paisa at Rs98.30 on 20m shares, Bank of Punjab, easy by 15 paisa at Rs99.05 on 19m shares, Askari Bank, lower 75 paisa at Rs89.15 on 18m shares, Fauji Cement, up 45 paisa at Rs19.40 on 16m shares and OGDC, off 40 paisa at Rs120.60 on 14m shares.They were followed by Dewan Cement, off one rupee on 16m shares, Fauji Fertiliser Bin Qasim, up 15 paisa on 11m shares and Sui Southern Gas, up Rs1.30 on 8m shares.

FORWARD COUNTER: D.G.Khan Cement also led the list of actives on the cleared list and was quoted higher by Rs3.90 at Rs99.55 on 7m shares followed by OGDC, easy 50 paisa at Rs121.10 on 7m shares and Lucky Cement, up 70 paisa at Rs98.65 on 6m shares.Bank Al Falah followed them, higher by Rs2.50 at Rs52.55 on 5m shares and Bank of Punjab, steady by five paisa at Rs99.40 on 4m shares.

DEFAULTER COS: Norrie Textiles came in for active support at the lower level and was marked up by five paisa at Rs3.20 on 0.407m shares followed by Zeal-Pak Cement, higher by 10 paisa at Rs5.55 on 0.328m shares and Hydery Construction, up 75 paisa at Rs2.50 on 0.133m shares.

Nimir Chemical was, however, an exception, which fell by five paisa at Rs2.50 on 0.107m shares.

DIVIDEND: Crescent Steel and Allied Products, second interim, 10 per cent, Pak-Gulf Leasing, bonus shares at the rate of eight per cent.