KARACHI: The share market on Monday staged a broad recovery triggered by strong foreign buying in the oil and banking sectors at the lower levels but the underlying sentiment remained terribly shaky owing to security concerns.

The market’s buoyant mood was also well-reflected in the KSE 100-share index, which also recovered 2.44 per cent or 223.65 points at 9,374.50 as the main target of speculative support were the leading base shares.

The KSE 30-share index was also quoted higher by 253.72 points or 2.62 per cent at 9,923.34.

Sharp gains in the leading index shares, notably OGDC, MCB Bank, National Bank, Pakistan Petroleum, Pakistan Oil Fields, Lakson Tobacco, Colgate Pakistan and some other blue chips supported the recovery.

‘It is pretty difficult to say whether the snap rally was genuine or deceptive as warranted by last week’s correction,’ analysts said.

No one could deny the fact, however, that the market was in a heavily oversold position and could attract any amount of buying both local and foreign amid hopes that lull in suicide attacks and bomb blast could be a prelude of improvement in the law order situation in the coming weeks, they hoped.

But some others said positive news from South Waziristan and tangible gains on all fronts may have encouraged foreign funds to re-enter the market at the current lows.

Although investors doubt any major breakthrough to resolve the political issues in the Nawaz-Zardari meeting at the dinner in honour of the Turkish prime minister at the President House, but it generated a good bit of optimism on the perception that the other meetings may follow, they added.

The snap rally in part was aided by higher corporate announcements by some of the leading companies under the lead of Fauji Fertiliser, whose management came out with the third interim cash dividend of Rs3 or 30 per cent, with first and second interim at the rate of Rs4.30 and Rs2.60 already paid.

Gainers dominated the list under the lead of Nestle Pakistan and Rafhan Maize, which recovered Rs40 and Rs35 respectively followed by IGI Insurance, Service Industries, Attock Petroleum, MCB Bank, Adamjee Insurance, ICI Pakistan, Colgate Pakistan, Bata Pakistan, Pakistan Oilfields, Lakson Tobacco and Unilever Pakistan, which posted gains ranging from Rs5 to Rs15.16.

Losers were led by Wyeth Pakistan and HinoPak, off by Rs43.99 and Rs12.87. Others, which followed them included Siemens Pakistan, Sapphire Fibre, Fazal Textiles, Shezan International, Siemens Pakistan, Sitara Chemicals and Shezan International, off by Rs5 to Rs7.99.

Trading volume was 196m shares from 195m shares at the last weekend, but gainers forced a strong lead over the losers at 224 to 162, with 15 shares holding on to the last levels.

The active list was topped by Pak PTA, steady by 62 paisa at Rs6.69 on 54m shares followed by Bank Alfalah, firm by five paisa at Rs14.16 on 15m shares, JS & Co, up 73 paisa at Rs36.04 on 13m shares, Arif Habib Securities, higher by Rs2.38 at Rs51.42 on 10m shares, OGDC, up by Rs3.71 at Rs108.22 also on 10m shares, Telecard, firm by one paisa at Rs2.58 on 7m shares and Pak Premier Fund, steady by 16 paisa at Rs6.48 on 5m shares.

National Bank followed them, up Rs3.09 at Rs84.03 on 5m shares, Pak Strat Fund, steady by three paisa at Rs5.02 also on 5m shares and Nishat Mills, higher by Rs2.89 at Rs60.65 on 4m shares.

FUTURE CONTRACTS:

Both the October and November settlements of OGDC led the advance on this counter, up by Rs3.10 and Rs3.09 at Rs107.76 and Rs107.75 on 0.803m and 0.744m shares respectively followed both the settlements of Bank Alfalah firm by 20 and 12 paisa at Rs14.28 and Rs14.20 in that order and National Bank, up Rs2.79 at 84.02 on 0.221m shares.

DEFAULTER COMPANIES:

The trading activity on this counter was relatively slow as investors remained busy in the ready section owing to a sharp recovery.

The active list was topped by Japan Power, easy by four paisa at Rs1.76 on 0.100m shares followed by Unity Modaraba, unchanged at Rs0.25 on 57,503 shares and Quice Foods, lower 11 paisa at Rs1.04 on 29,500 shares. Others were modestly traded.

DIVIDEND:

KASB Cash Fund, interim at the rate of Rs1.50 per unit, KASB Islamic Income Fund, Rs3.50 per unit, J.S. Value Fund cash 10 per cent.