January 19, 2008	Saturday	Muharram 09, 1429

KARACHI, Jan 18: The KSE 100-share index on Friday staged a snap rally of 200 points or 1.47 per cent at 13,875, followed by active short-covering in the leading base shares at the lower levels, but the future outlook appears to be uncertain.

“A technical rebound, both genuine or inspired at the weekend, is considered a very unusual performance in market parlance, analyst Ahsan Mehanti said, but doubted that it may extend when the trading resumes next week.” But some others said it could be extended next week also on the strength of follow-up support.The KSE 100-share index recovered from the recent lows and was quoted sharply higher by 200.50 points at 13,874.54 as compared to 13,674.04 a day earlier, adding Rs69 billion to the market capital at Rs4,264 billion, reflecting the strength of leading base shares.

The free-float 30-share index also recovered 285.64 points at 16,485.91 as its leading base shares rose from the early week lower levels on active support. Leading bank, oil, cement shares and other blue chips, which were under pressure for the last couple of sessions came in for strong covering purchases and pushed the index up from the current lows.

But analyst Hasnain Asghar Ali said market’s future direction will be guided by the next two days happenings, notably law and order situation during the Ashura processions.

However, no one could deny the fact that the market is in a highly oversold position and needs a lot of covering purchases at the current lower levels, but investors, including the market leaders, are not inclined to play their role as trend-setters.

Essentially, the investor worries are linked with law and order situation and political uncertainty, some others said, adding as far as performance of the corporate sector is concerned, they are pretty encouraging and could take the market to its pre-reaction or beyond levels given the peaceful environment.

“The market is eagerly awaiting the return of foreign investors who are currently leading those who are seeking an exit,” another analyst Ashraf Zakaria said, adding “all eyes are now focused on the election and its outcome, notably the winning party.”

Leading gainers were led by Bata Pakistan and Siemen’s Pakistan, up Rs20 and Rs62, respectively, followed by National Foods, AKD Securities, Sanofi-Aventis, Sitara Chemicals, Al-Ghazi Tractors, Pakistan Engineering, PSO, Shell Pakistan, EFU Life, EFU General, Habib Bank and Arif Habib Ltd, which were quoted higher by Rs9.55 to 18.

Losses on the other hand were fractional, barring sharp decline of Rs110 and 59.70 in Rafhan Maize and JS & Co, respectively, Colgate Pakistan was another big loser, off Rs38, while Pak-Suzuki Motors, Central Insurance, Singer and Pakistan Services fell by Rs4 to 10.

Trading volume rose to 237 million shares from the previous 195m shares as gainers held a strong lead over losers at 239 to 68, with 33 at the last levels.

PTCL led the list of actives, higher by 35 paisas at Rs39.05 on 31 million shares, followed by Arif Habib Securities up Rs5.50 at Rs170.80 on 12 million shares, National Bank higher by Rs6.65 at Rs227.90 on 11m shares, Lucky Cement up Rs2.95 at Rs115.05 on 10 million shares, BankIslami up Re1 at Rs19 on 7m shares.

The other actives were led by Azgard Nine Textiles, lower by 85 paisa at Rs49.00 on 17m shares, followed by NIB Bank, up by Rs1.05 at Rs22.20 on 14m shares, TRG Pakistan, higher by 40 paisas at Rs12.95 on 9m shares, Pace Pakistan, up 80 paisas at Rs30.75 on 8m shares and Dost Steels, higher by Rs1.65 at Rs37 on 7m shares.

FOTWARD COUNTER: Arif Habib Bank again led the list of actives on the cleared list, up by 85 paisas at Rs31.85 on 7m shares, followed by MCB, higher by Rs6.55 at Rs381.25 on 5m shares, and PTCL, up by 55 paisas at Rs39.40 also on 5m shares.

National Bank followed them, higher by Rs6.70 at Rs228.25 on 5m shares and Lucky Cement, firm by Rs2.30 at Rs115.20 on 4m shares.

DEFAULTER COs: Trading activity on this counter was slow owing to the absence of leading investors and as a result, active shares lacked normal support and showed changes either way.

Norrie Textiles led the list of actives, unchanged at Rs2.25 on 0.859m shares, followed by Zeal-Pak Cement steady by 10 paisas at Rs4.40 on 0.612m shares and Unity Modaraba, also unchanged at Rs1.60 on 0.256m shares.