May 14, 2008	Wednesday	Jamadi-ul-Awwal 8, 1429

KARACHI, May 13: The Karachi Stock Exchange (KSE) 100-share index on Tuesday virtually roared back to its pre-reaction level on strong support on the blue chip counters aided by some positive developments on the financial front after the resignations of the Pakistan Muslim League-N ministers on the judges’ issue.

The net rise was of 255.89 points or 1.79 per cent at 14,542.50, adding about Rs80 billion to the market capital.

“Press reports that Shaukat Tareen, a renowned banker and former chairman of the KSE, may replace the sitting finance minister Ishaq Dar if resignations of the PML-N ministers are accepted was the chief stimulating factor behind the bull run-up,” said a leading analyst Hasnain Asghar Ali.

“Tareen is known as a good finance manager.”

But another analyst Ashraf Zakaria thinks the buying euphoria, apart from the attractively lower levels attained by most of the leading shares, the other dominating factor appears to be the investor’s resolve to go by the market fundamentals rather than the negative political developments.

He said the tired bulls were not inclined to await the dust raised on the political front by some of the leaders settles down and were out to invest their idle funds as chances of capital gains are now much higher, he added.

“Enough is enough,” he said, and added: “The market has already passed through a needed technical correction and being in a highly oversold position warrants a strong technical rebound.”

The KSE 100-share index finally ended above its resistance level of 14,500 at 14,542.50, up by 255.89 points or 1.79 per cent as leading base shares came in for renewed heavy buying under the lead of MCB Bank, Pakistan Petroleum, Engro Chemicals and Arif Habib Securities.

But on the other hand, its junior partner, 30-share free float index rose by another 457.91 points or 2.71 per cent as it virtually raced towards its pre-reaction peak levels.Plus signs dominated the list under the lead of Siemens Pakistan and Colgate Pakistan, up by Rs74.90 and Rs28.27.

Other prominent gainers were led by Pakistan Services, Tri-Pack Films, Sanofi-Aventis, BOC Pakistan, Packages, PSO, Lakson Tobacco, Sapphire Fibres, Adamjee Insurance, EFU General, EFU Life, MCB Bank, JS Global and JS & Co, which posted gains, ranging from Rs10 to Rs28.Leading MNCs fell by Rs78.65 and Rs25 under the lead of Unilever Pakistan and Nestle Pakistan, respectively, followed by Allied Bank, Century Papers, and Berger Paints, off by Rs2.15 and Rs5.

Trading volume showed a modest increase at 205m shares from the previous 146 million shares as gainers forced a strong lead over the losers at 266 to 50, with 18 holding on to the last levels.

Arif Habib Securities again led the list of actives, up by Rs9.45 at Rs198.45 on 26 million shares, followed by Engro Chemicals, higher by Rs9.01 at Rs333 on nine million shares, Nishat Mills, firm by Rs3.89 at Rs117.75 on eight million shares, D I Khan Cement, steady by Rs1.50 at Rs97 on seven million shares, Pakistan Petroleum, higher by Rs6.50 at Rs270.30 on seven million shares, OGDC, lower 35 paisa at Rs131.30 also on seven million shares and MCB Bank, sharply higher by Rs18.04 at Rs378.84 on six million shares.

Other actives were led by Lucky Cement, unchanged at Rs126.80 on seven million shares, followed by Bank of Punjab, higher by Rs2.61 at Rs57.86 on six million shares and Azgard Nine, firm by 50 paisa at Rs76 on six million shares.

FORWARD COUNTER: Arif Habib Securities also led the list of actives on the cleared list, up Rs9.49 at Rs199.29 on five million shares, followed by MCB Bank, sharply higher by Rs18.15 at Rs381.30 on four million shares and Nishat Mills, up Rs4.45 at Rs119 also on four million shares.

Engro Chemical followed them, Rs9.90 at Rs335.50 on three million shares and Azgard Nine, lower by 32 paisa at Rs76.37 on two million shares.

DEFAULTER COS: Norrie Textiles came in for active profit-selling at the higher level and was quoted lower by seven paisa at Rs1.86 on 2.815 million shares, followed by Crescent Standard Modaraba, which posted a fresh gain of one rupee at Rs4.40 on 2.441 million shares, Zeal Pak Cement, higher by 65 paisa at Rs6.88 on 0.274 million shares and Invest Capital Bank, up 14 paisa at Rs19.34 on 0.175 million shares.