KARACHI, May 20: After a steep fall earlier stocks showed smart recovery followed by active short-covering at the lower levels on the blue chip counters triggered partly by positive signals from the FBR on the issue of capital gains tax and partly to reports that a draft of constitutional package is ready, aiming at reinstatement of judges after the parliament nod.

The reports that the package will also trim president’s powers among others, to dissolve assemblies buoyed most of the investors on the perception that the amendment will lead to political stability, said a leading analyst Ahsan Mehanti.

But he said the chief morale booster behind the recovery appears to be a note from the Federal Board of Revenue (FBR) on the issue of capital gain tax and its willingness to hold talks with the KSE high-ups on the issue. “The general perception in the market was that exemption will be extended,” he said.

After hitting the session’s high of 13,984.02 and low at 13,657.45, respectively, the KSE 100-share index managed to finish around 13,903.12, recouping a good part of the initial fall. But on the other hand the free-float 30-share index recovered 37.76 points at 16,417.58.The mid-session rally was aided by active short-covering in some of the leading shares, notably Shell Pakistan, PSO, Arif Habib Securities, Engro Chemical, National Bank, Bank Alfalah and some others.

“The news of reinstatement of judges, and the market’s highly oversold position could take it to any highs during the next couple of sessions if the sailing of the constitutional package in the parliament is smooth,” analyst Hasnain Asghar Ali predicts.

But he said the prevailing scare among the investors, notably foreign ones, would only be eliminated if coalition partners remained united on the package and let it got through the parliament with one voice.

“Much damage has already been caused to the share business by negative and conflicting statements by the political leaders wiping out billions of rupees from the market capital during the last couple of weeks and the market would cherish the return of sanity on this count,” analyst Ashraf Zakaria thinks.

Among the leading gainers, AKD Capital and JS & Co were leading, up by Rs53.59 and Rs25 followed by Mehmood Textiles, Lakson Tobacco, PSO, Dadex Eternit, Murree Brewery, Noon Pakistan, Dawood Hercules, Engro Chemical, National Foods and Shell Pakistan, which posted gains ranging from Rs4 to Rs22.85, the largest rise being in Shell Pakistan in response to higher world prices.

EFU Life and EFU General Insurance led the list of losers, off by Rs25.17 and Rs24. Other prominent losers, included BOC Pakistan, Ghani Glass, Mitchell’s Farms, Attock Refinery, Sapphire Textiles, Sapphire Fibres, and New Jubilee Insurance, up by Rs5.68 to Rs10.

Trading volume showed a modest rise at 168m shares from the previous 125m shares but losers held a fair lead over the gainers at 199 to 109, with 31 shares holding on to the last levels.

Arif Habib Securities led the list of actives, higher by Rs5.40 at Rs186.50 on 11m shares followed by Fauji Fertiliser Bin Qasim, firm by 75 paisa at Rs37.75 on 9m shares, Engro Chemical, sharply higher by Rs6.30 at Rs314.30 on 8m shares, Nishat Mills, lower by 60 paisa at Rs107.80 also on 8m shares, Azgard Nine, steady by 62 paisa at Rs69.70 on 8m shares, and D.G. Khan Cement, off Rs1.14 at Rs89.30 on 6m shares.

Other actives were led by Pakistan Petroleum, off Rs1.11 at Rs260.99 on 5m shares and Bank Alfalah, up 60 paisa at Rs54.20 on 4m shares and NIB Bank, easy by 29 paisa at Rs15.29 on 5m shares.

FORWARD COUNTER: MCB Bank remained under pressure and led the list of actives, off 2.50 at Rs353 on 6m shares followed by Engro Chemical, higher by Rs7.10 at Rs315.10 also on 6m shares and JS & Co, sharply higher by Rs26.07 at Rs547.62 on 4m shares.

Nishat Mills followed them, lower by 50 paisa at Rs108.50 on 4m shares and National Bank, higher by Rs1.51 at Rs203.50 also on 4m shares.

DEFAULTER COS: Norrie Textiles came in for active selling and led the list of actives, lower by eight paisa at Rs2.12 on 1.804m shares followed by Unity Modaraba, up 17 paisa at Rs1.36 on 0.416m shares and Zeal Pak Cement, easy by 12 paisa at Rs3.23 on 0.264m shares.

Japan Power followed them, lower 15 paisa at Rs7.70 on 0.257m shares and Quice Foods, off 35 paisa at Rs3.25 on 0.114m shares.

May 20, 2008

Market at a glance

TONE:easy,total listed 654,actives 339,inactives 315,plus 109,minus 199,unc 31

KSE 30-SHARE NDEX:previous 16,379.82,Tuesday’s 16,417.58,plus 37.76 points

KSE 100-SHARE INDEX:previous 13,921.54,Tuesday’s 13,903.12,minus 18.42 points

MARKET CAPITAL;previous Rs.4,279.893bn,Tuesday’s 4,270.988bn,minus 8.905bn.

TOP TEN:gainers AKD Capital Rs.53.59,JS & Co 25.90,Shell Pakistan 22.85,National Foods 17.00,Engro Chemical 8.30

LOSERS:EFU Kife Rs.25.17,EFU General 24.00,Sapphire Textiles 10.00,Attock Refinery 9.15,New Jubilee 8.70

TOTAL VOLUME:167.593m shares

VOLUME LEADERS:Arif Habib Securities 11.223m,Fauji Fertiuliser Bin Qasim 9.182m,Engro Chemical 8.100m,Nishat Mills 8.040m,Azgard Nine 7.509m shares.