KARACHI, Aug 7: Leading shares on the stock market on Thursday came in for modest fund buying under the lead of banking and oil sectors and ended higher, but the broader market stayed weak on fresh selling.

The Karachi Stock Exchange (KSE) 100-share index recovered 28.47 points at 9,707.29, reflecting the strength of MCB Bank, whose weightage in the index is the largest (11 per cent), followed by OGDC, Pakistan Petroleum and some other index-heavy shares. Its junior partner also recovered 47.21 points at 10,833.22.

The recently set up Rs20 billion market support fund managed by the NIT made its showing in a highly oversold market but its presence was too small to lure others in the arena, said a leading analyst Ahsan Mehanti, adding, it was essentially highly selective and remained confined to relative sound shares.

But another leading analyst Faisal A. Rajabli says the market may not actively respond to its oversold position until the dust raised on the political front settles down.

“The situation on the political front, notably with regard to president’s impeachment is steadily getting clearer followed by reports of a consensus on the issue among coalition partners, although the situation is still fraught with high risks,” analyst Hasnain Asghar Ali said, adding: “how the president will react to the current moves of the contenders of power will give the needed direction to the hostage market.”

Late reports said the coalition partners claim that they have the two-third majority in both the houses and go for president’s impeachment if he did not resign on their formal demand.

Analyst Ashraf Zakaria predicts if all political issues, including president’s fate, are amicably settled the market could resume its upward drive beyond the index levels on the strength of expected higher payouts by the banking and cement sectors.Among the leading gainers, Shezan International and Attock Petroleum were leading, up by Rs14.66 and Rs13.19 followed by Mehmood Textiles, New Jubilee Insurance, Pakistan Petroleum, ICI Pakistan, National Foods, Habib Bank and MCB Bank, which posted gains, ranging from Rs5 to 12.

But on the other hand, Lakson Tobacco and Siemens Pakistan fell by Rs19.40 and Rs67, respectively. Other leading losers were led by Arif Habib Ltd, Adamjee Insurance, EFU General, Attock Refinery, National Refinery, Mari Gas, Sitara Chemicals, Dawood Hercules and JS & Co, up by Rs7.65 to Rs14.98.

Trading volume rose to 120m shares from the previous 78m shares but losers held a comfortable lead over the gainers at 156 to 114, with 17 shares holding on to the last levels.

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