May 08, 2008	Thursday	Jamadi-ul-Awwal 2, 1429

KARACH, May 7: Stocks on Wednesday recovered from the previous lows as a section of investors covered positions on selected counters under the lead of financial institutions but the rally appears to be too feeble to give definite direction to the market.

It was, however, satisfying to note that the market broke the extended bearish spell and recovered under the lead of oil sector triggered by reports of fresh record rise in the crude oil prices above $122 per barrel. The KSE 100-share index recouped 46.45 points at 14,455.29 from the previous massive loss of 1,000 points.

On technical grounds the recessionary spell was also overdone as after having shed 1,000 points or 6.5 per cent in value over the last six sessions, the index needed technical correction based on basic positive fundamentals, analysts said.The interesting feature was that despite the weakness of shares of the Mansha Group, notably MCB bank, the oil share-based rally manifested itself in a bigger way indicating that the worst may be over by now.

“But the weakness of its junior partner, which fell modestly about 19 points and the close below the session’s high of 14,57.50 reflects that a section of investors was still unsure about the future direction of the market,” they added.

The volume figure was well below the 200m share mark as investors just readjusted their portfolios here and there but did not opt for fresh buying even at the attractively lower levels, some others said.

“Over the last couple of sessions, the market has received a massive battering owing to a combination of negative factors, including the exit of the foreign investors,” said a leading broker adding, “How will it bail itself out from the unfolding political scenario is not fully clear at this stage.”

That is perhaps why future outlook appears to be a bit uncertain amid fading sustaining factors, notably the corporate announcements, some others said.

Leading gainers were led by Fazal Textiles and Unilever Pakistan, up by Rs25.02 and Rs28.65, followed by Shell Gas, National Refinery, Pakistan Refinery, Pakistan Oilfields, Sitara Chemicals, Shezan International, Clariant Pakistan, Mari Gas, Attock Refinery, JS Global, Arif Habib Ltd, and Attock Petroleum, which posted gains ranging from Rs5 to Rs19.95.

Siemens Pakistan and EFU General Insurance were prominent among the losers, 0ff Rs50.50 and Rs14.45. They were followed by Pakistan Reinsurance, Al-Ghazi Tractors, Dadex, HinoPak, Sanofi-Aventis, Sapphire Fibres, Shell Pakistan and MCB Bank, which suffered fall ranging from Rs7.05 to Rs11.40.

Traded volume fell to 185m shares from the previous 198m shares but gainers held a fair lead over the losers at 175 to 140, with 25 shares holding on to the last levels.D.G. Khan Cement topped the list of actives, steady by 55 paisa at Rs98.50 on 10m shares, followed by Nishat Mills, off Rs3.06 at Rs115.50 on 9m shares, PTCL, up 45 paisa at Rs45.45 on 8m shares, OGDC, up Rs2 at Rs132.95, MCB Bank, sharply lower by Rs11.40 at Rs385.10 on 7m shares, Pakistan Oilfields, higher by Rs7.50 at Rs419 on 7m shares, and Bank of Punjab, firm by Rs2.07 at Rs54.48 also on 7m shares.

Engro Chemicals followed them, higher by Rs4.50 at Rs330 on 6m shares, TRG Pakistan, up 45 paisa at Rs8.10 also on 6m shares and Pervez Securities, higher by 87 paisa at Rs83 on 5m shares.

FORWARD COUNTER: MCB Bank led the list of actives on the cleared list and fell by another Rs11 at Rs389 on 6m shares followed by Lucky Cement, off Rs3.49 at Rs133.50 on 5m shares and Nishat Mills, off Rs2.69 at Rs117 on 4m shares.

D.G. Khan Cement followed them, up by 79 paisa at Rs99.30 on 4m shares and National Bank, easy Rs1.95 at Rs219 also on 4m shares.

DEFAULTER COS: Norrie Textiles again led the list of actives, lower by six paisa at Rs1.85 on 4.433m shares followed by Crescent Standard Modaraba, up 16 paisa at Rs2.66 on 0.884m shares, Zeal Pak Cement, up 11 paisa at Rs3.23 on 0.449m shares and Japan Power, higher by 33 paisa at Rs6.48 on 0.338m shares.