KARACHI, July 25: The share market on Wednesday resisted larger fall as a section of investors covered positions in the cement and oil sectors but the underlying sentiment remained shaky owing to negative news from the tribal areas.

The KSE 100-share index, however, staged a modest recovery from the overnight lower levels aided by stray short-covering in the leading base shares, although the broader market remained subdued in the absence of foreign participants.

It finally finished with a gain of 42.30 points at 13,595.20 as compared to 13,552.90 a day earlier, reflecting the strength of leading base shares, notably National Bank, OGDC, Lucky Cement and Bank Alfalah. Its junior partner, the 30-share index rose by 131.21 points at 16,399.71 points.

National Bank also responded positively to news that consultants have been appointed to issue its GDR on the London Stock Exchange.

Turnover figure shrank further ahead of the public offering of the Habib Bank’s 34.5 million shares with a green-shoe option of 17.2m shares at Rs235 including a premium of Rs225 per share from July 26 to 31, and analysts said good amount of money may outflow the market for the issue.

However, the underlying sentiment early was boosted on market talk of higher payout by the United Bank on the strength of sharp increase in its interim earnings. But late in the evening its board did not declare any interim dividend as was speculated by the analysts.

Analysts said the absence of foreign investors in daily trading was another inhibiting factor behind the market’s either-way movements.

“The news from the tribal areas may not have negative an immediate impact on the price line, but fears are lurking in investors’ mind about the future share price outlook,” they said.Investors are, therefore, playing safe and are not inclined to go beyond the safe havens or the shares whose price movements are not that violent and are mostly risk-free amid bad news too, they added.

But some others said the shares including some big ones whose board meetings are due for the half year ended June 30 are expected to keep the market in a positive mood on hopes of higher interim dividends.

Minus signs again dominated the list under the lead of Javed Omer and New Jubilee Insurance, off by Rs10.80 and Rs10.65, followed by Sapphire Fibres, Pakistan Tobacco, National Refinery, Netsol Technology, Berger Paints and Gillette Pakistan, which suffered fall ranging from Rs4 to Rs7.75.

But on the other hand JS & Co and Siemens Pakistan rose by Rs32.75 and Rs80 respectively. Other good gainers were led by National Bank, Pakistan Resource Insurance, Thal Jute, Sanofi-Aventis, BOC Pakistan, Pakistan Services, EFU General, EFU Life, Fazal Textiles and Mari Gas, up by Rs5 to Rs12.65.

Trading volume, however, shrank to 260m shares from the previous 311m shares as losers held a fair lead over the gainers at 185 to 127 with 41 shares holding on to the last levels.

Lucky Cement topped the list of most actives, up by Rs3.40 at Rs126.20 on 23m shares followed by Arif Habib Securities, lower by Rs1.55 at Rs140.95 on 17m shares, National Bank, higher by Rs5.90 at Rs247.20 on 15m shares and Fauji Cement, easy by 30 paisa at Rs21.50 on 14m shares.

Saudi Pak Bank, which is expected to be sold to a consortium of foreign investors after the SBP approval, off 70 paisa at Rs26.65 on 9m shares, Bank Alfalah, up by Re1 at Rs55 on 8m shares and OGDC, steady by 50 paisa at Rs121.60 on 8m shares.

Other actives included Telecard, lower 20 paisa on 10m shares, D.G. Khan Cement, up by Rs2.20 also on 10m shares and Fauji Fertiliser bin Qasim, lower by 55 paisa on 9m shares.

FORWARD COUNTER: Lucky Cement led the list of actives on the cleared list, up by Rs3.64 at Rs126.49 on 5m shares followed by National Bank, higher by Rs5.50 at Rs247.50 on 4m shares and D.G. Khan Cement, up by Rs1.84 at Rs107.85 also on 4m shares.