June 03, 2008	Tuesday	Jamadi-ul-Awwal 28, 1429

KARACHI, June 2: The share market on Monday resumed trading on a higher note as investors covered positions on the banking, cement and oil counters aided partly by the market talk of extension in the capital gains tax exemption in the national budget due on June 7, and partly to technical factors. The KSE 100-share index recovered 150 points at 12,281.20.

Essentially, it appears to be a technical rebound at the lower levels as tired bulls entered the market with big buy stops but failed to get a matching response from the bears, which were not inclined to sell at the current lows anticipating fresh rise in share values as was reflected by light volume.

“But what seems to have induced investors back in the market was said to be attractively lower levels most of the leading scrips reached during the last week’s massive crash and no one was inclined to miss them,” analyst Faisal A. Rajabali said.

The other aiding positive factor were reports that despite pressures on economy, an alarming trade deficit and high rate of inflation, the new budget is expected to be investment-friendly, they said.

Although finished well below the session’s high of 12,327.38, up about 200 points, the KSE 100-share index managed to finish with a good gain of 150.69 points at 12,281.20 as compared to previous 12,130.51 points. The 30-share free float index was up by 223.15 points at 14,321.13.

Bulk of the support remained confined to the low-priced bank, notably National Bank, Lucky Cement, OGDC, United Bank and Arif Habib Securities, which showed smart rallies at the current lows.

“I will not call it the advent of the pre-budget rally as after having lost about 1,800 points during the last week, the market was ripe for a technical correction irrespective of political uncertainty,” analyst Ashraf Zakaria said, adding: “If it extends the recovery further at the current lows, it could convert itself in the pre-budget speculative rally”.

News from the political front is not that supporting and investors have to go alone, of course, under the lead of financial institutions to push the market to its pre-reaction levels, he added.

Plus signs dominated the list under the lead of PSO and Millat Tractors, up by Rs13 and Rs13.26 in that order, followed by Arif Habib Securities, JS Global, JS & Co, National Bank, EFU General, Dawood Lawrence, Thal, Attock Refinery, Pakistan Oilfields, Dawood Hercules, and Ferozsons Lab, up by Rs7.35 to Rs11.50.

Unilever Pakistan and Pakistan Engineering were leading among the top losers, off Rs77 and Rs20, respectively. MCB Bank, EFU Life, Sapphire Fibres, Pakistan Tobacco, Gatron Industries, Murree Brewery and Service Industries followed them, off by Rs4.01 to Rs11.61.

Trading volume was light falling to 133m shares from the previous 226m shares as investors awaited further increase in prices after the return of the bull market. Gainers led losers by 214 to 92, with 26 shares holding on to the last levels.

Arif Habib led the list of actives, sharply higher by Rs7.65 at Rs160.75 on 8m shares followed by NIB bank, steady by 10 paisa at Rs12.40 on 6m shares, National Bank, up Rs7.89 at Rs165.70 also on 6m shares, Lucky Cement, higher by Rs3.55 at Rs112.00 on 6m shares, D.G. Khan Cement, firm by Rs3.10 at Rs75.70 on 6m shares, MCB Bank, off Rs5.41 at Rs269 on 5m shares, and OGDC, firm by one rupee at Rs124.70 on 4m shares.

Other actives were led by Bank of Punjab, off by Rs1.70 at Rs35.70 on 5m shares, Prudential Modaraba, easy by nine paisa at Rs4.30 on 4m shares and United Bank, steady by 30 paisa at Rs102.05 also on 4m shares.FORWARD COUNTER: MCB Bank came in for fresh selling on the cleared list and was marked down by Rs2 at Rs273 on 9m shares followed by Lucky Cement, up Rs4.50 at Rs113 on 3m shares and Arif Habib Securities, higher by Rs7.77 at Rs163.27 also on 3m shares.

JS Co followed them, higher by Rs17.89 at Rs528.89 on 2m shares and National Bank, up by Rs7.81 at Rs164.01 also on 2m shares.

DEAFAULTER COMPANIES: Trading activity on this counter was relatively slow as investors remained busy on the ready counter and covered positions at the lower levels. Zeal Pak Cement was, however, an exception, easy by three paisa at Rs2.71 on 2.039m shares followed by Norrie Textiles, steady by two paisa at Rs2.14 on 0.621m shares and Unity Modaraba, unchanged at Rs1.06 on 0.100m shares.