KARACHI, Jan 1: The share market began the new year trading on a relatively improved note on Thursday as a section of investors covered positions at the lower levels ahead of the launching of the Rs20 billion market support fund possibly by the next week.

For the second session in a row, the market showed some signs of recovery indicating that the protracted bearish spell may have run its course.

The perception that the market has already hit its bottom and there are reasons to believe that the technical rebound may be around.

The KSE 100-share index though limited the daily fall but ended further lower by 111.83 points or 1.91 per cent at 5,753.18, reflecting the weakness of the leading base shares.

The KSE 30-share and All Share index fell by 143.36 and 73.00 points at 5,341.97 and 4,327.76 respectively and so did the KMI 30-share index at 6,661.58, off 41.88 points.

Analysts said although the indices showed fresh fall in unison but the prevailing selling was tamed considerably thanks to revival of demand and the improvement was linked to future technical rebound.

The resistance to further marking down of prices was led by the leading base shares including Pakistan Petroleum, Hub-Power and Packages.

After having lost about 60 per cent in the index value or $53 billion over the last couple of months, the market has to go a long way to its real self, supported of course by the positive background news on the corporate and political fronts, analysts said.

The loss in values is too high to be recouped just in a couple of months, they said.

But some others feel the market has the capacity to give pleasant surprises to even some well-informed ones as it did some months back by rising 960 points in a single session after the reports of two-year extension in capital gains tax.

Packages and Pakistan Petroleum led the list of advancing shares, up by Rs3.88 to Rs5.03, followed by Habib Metropolitan Bank, Kot Addu Power, Huffaz Pipes, Netsole, Fauji Feritiliser, Pak Datacom, Millat Tractors, Glaxo-SKF and Packages, which recovered Rs1.22 to Rs3.88.

Losers were led by Adamjee Insurance, EFU General Insurance, Attock Petroleum, PSO, Pakistan Oilfields, Indus Motors, Clariant Pakistan, MCB Bank, Dawood Hercules, Ferozsons Lab and Pakistan Services, which were marked down by Rs5.09 to Rs21.53.

But the largest fall of Rs119.07 was again recorded in Rafhan Maize on renewed selling triggered by some inside negative news, dealers said.

Trading volume was maintained around the overnight level of 75m shares, but gainers matched the losers at 106 to 114, with 10 shares holding onto the last levels.

WorldCall Telecom led the list of actives, up 13 paisa at Rs3.10 on 7m shares followed by Fauji Fertiliser Bin Qasim, lower by 21 paisa at Rs12.69 on 6m shares, TRG Pakistan, steady by 27 paisa at Rs2.05 on 5m shares, Pervez A. Securities, lower by 40 paisa at Rs3.21 also on 5m shares, NIB Bank, firm by 22 paisa at Rs4.89 on 4m shares, Saudi Pak Bank, lower by 26 paisa at Rs4.75 also on 4m shares and Pak PTA, higher by 22 paisa at Rs81 on 3m shares.

PACE Pakistan followed them, up 56 paisa at Rs9.20 on 3m shares, Arif Habib Bank, firm by 34 paisa at Rs5.87 also on 3m shares and Hub-Power, higher by Re1 at Rs15.09 on 3m shares.

FORWARD COUNTER: Share values on this counter continued to drift further lower in the absence of buying from any quarter.

Allied Bank, Bank of Punjab, Habib Bank and ICI Pakistan again led the list of losers, fell by Rs1.63 to Rs3.91.

The notable was that the December settlements were rung off the board and the January contracts assumed the role of ruling settlements.

PSO, MCB Bank, Pakistan Oilfields were leading among the other losers.

DEFAULTER COMPANIES: Zeal Pak Cement came in for active short-covering at the lower levels and rose by four paisa at Rs0.56 on 1.423m shares followed by Japan Power, steady by one paisa at Rs1.72 on 0.256m shares and Unity Modaraba, easy by two paisa at Rs0.30 on 70,500 shares.

The largest fall was noted in International Knitwear, which fell by Rs1.15, National Asset Leasing, Shahpur Textiles and Zahoor Cotton rose by 16 to 49 paisa amid light trading.