May 15, 2008	Thursday	Jamadi-ul-Awwal 9, 1429

KARACHI, May 14: The overnight buying euphoria slightly slowed down on Wednesday as leading investors had an overview of the developing political situation before opting for fresh covering purchases.

The Karachi Stock Exchange (KSE) 100-share index recovered another 51 points at 14,593.44.

But the oil-fuelled rally, followed by reports of persistent rise in world crude oil prices to $126 plus per barrel, was selectively sustained by leading oil shares and for good reasons too, said a leading floor broker, although foreign investors again remained conspicuous by their absence.

Although finished well below the session’s peak level of 14,664 points, the KSE 100-share index closed with an extended gain of 50.94 points at 14,593.44 as leading base shares rose further.

The KSE 30-share index on the other hand rose by 125.71 points at 17,493.44.

Bulk of the support was confined to leading base shares, notably MCB Bank, Pakistan Oilfields, Pakistan Petroleum, and some others, which allowed the index to close higher despite late profit-selling.

The buying euphoria witnessed during the last two sessions, however, turned a bit slow as a section of investors had a second thought on the prevailing political scenario, notably visible divide between the major contenders of powers, analysts said.The investors’ fears about a possible delay in the national budget due early next month owing to resignations of PML-N ministers also worried them on the issue whether or not the capital gains tax exemption would be extended, they said.

But indications are that the current recovery tempo is expected to be sustained in the coming weeks also as bulls may not like an attractive bait of capital gains at the prevailing lows, some others hoped.

“The break-up of a strong coalition government at the centre did worry investors as the future share business outlook may not be that encouraging as widely speculated after the elections,” they said, and added “in typical Pakistani political conditions former foes seldom come to terms in the final analysis.”

The unresolved issue of judges may drag on for months as lawyers may pick up thread from where they left during the pre-election days as major coalition partners failed to solve it as they had vowed, they fear.

The market undertone was steady as plus signs held a modest lead over losers under the lead of AKD Capital and EFU Life Assurance, up by Rs46.30 and Rs20.40, followed by Fazal Textiles, JS Global, Pakistan Reinsurance, Lakson Tobacco, Sazgar Engineering, National Foods, Siemens Pakistan, Adamjee Insurance, HinoPak, and EFU General, which posted fresh gains, ranging from Rs6.13 to Rs18.28, while Sapphire Fibres and Shell Gas fell by Rs8.50 and Rs8.49 on renewed selling.

Others which also fell included IGI Insurance, Attock Refinery, Dawood Hercules, Nestle Pakistan, and Service Industries, off by Rs5 to 8.

Trading volume rose to 232 million shares from the previous 205 million shares as gainers held a modest lead over the losers at 171 to 167, with 23 shares holding on to the last levels.

Arif Habib Securities topped the list of actives, off Rs3.45 at Rs195 on 21 million shares followed by Norrie Textiles, higher by 67 paisa at Rs2.53 on 16 million shares, Bank Alfalah, up by Rs1.20 at Rs56.10 on 14 million shares, Nishat Mills, firm by 95 paisa at Rs118.70 on 10 million shares, Pakistan Oilfields, sharply higher by Rs4.80 at Rs426.25 also on 10 million shares, OGDC, steady by 20 paisa at Rs131.50 on nine million shares, Pakistan Petroleum, up Rs1.50 at Rs271.80 on eight million shares and MCB Bank, higher by Rs5.16 at Rs384 on eight million shares.

Other actives were led by NIB Bank, higher by 98 paisa at Rs16.40 on 10 million shares, followed by Azgard Nine, off Rs1.50 at Rs74.50 on eight million shares.

FORWARD COUNTER: MCB Bank led the list of actives on the cleared list, up by Rs5.60 at Rs386.90 on six million shares, followed by Arif Habib Securities, off Rs2.80 at Rs196.49 on five million shares and Nishat Mills, steady by 11 paisa at Rs119.11 on four million shares.

Azgard Nine followed them, lower by Rs1.07 at Rs75.30 on three million shares and Engro Chemical, off Rs5.15 at Rs330.65 also on three million shares.

DEFAULTER COs: Crescent Standard Modaraba led the list of actives on this counter, off 40 paisa at Rs4 on a large volume of 1.599 million shares, followed by Zeal Pak Cement, easy by five paisa at Rs3.20 on 0.434 million shares, Japan Power, fractionally higher by 0.01 paisa at Rs6.89 on 0.239 million shares and Shakarganj Foods, higher by one rupee at Rs16.50 on 0.107 million shares.