KARACHI, June 20: The share market on Wednesday was back on the rails on active short-covering in oil and bank shares ahead of pre-bid meeting of Pakistan State Oil (PSO) and fixation of official bidding date.

However, the index reacted to close well below its session’s peak on late selling triggered by reports of missile attack in the tribal area, which killed about three dozen persons.

Price changes were mostly fractional and reflected a near-status quo as investors awaited the outcome of PSO pre-bid meeting which held in Islamabad later in the day.

But the market’s positive mood was well-reflected in the KSE 100-share index, which after having hit the session’s level at 13,597.74 ended with a gain of 61.90 points at 13,556.73 as compared to previous 13,494.83 points. The free-float 30-share index also recovered 88.15 points to close at 16,897.79.

The bulk of buying interest again remained confined to most of the second-liners, which ensure capital gains. TRG Pakistan, JS Bank and WorldCall Telecom were leading among them, what dealers called, sponsored buying.

The market perception was that the entire process of disinvestment of 51 per cent controlling stake in PSO to one of a dozen short-listed companies would be completed during the current fiscal triggered buystops in its share value for the second day in a row, analysts said.

“Investors terribly cherish the idea of privatization of state-owned units as they significantly add to the floating stock,” they added.

PSO being the index heavy-weight is capable of taking the entire market along with it where it wants it to be, some others said.

“It was literally a day of oil and bank shares which remained in strong demand and finished well above the overnight lower levels on active short-covering by the local institutional traders and the foreign buyers,” they said.

Though it was a bit late reaction to the CBR clarification that the capital gains tax on the banking sector will be imposed from January 2009 and not from 2008 as announced in the budget, this sector has other reason to rise from the earlier lows, they added.

Prominent gainers were led by Atlas Honda, Javed Omer, Bata Pakistan and Nestle Pakistan, which rose by Rs8 to Rs60 followed by National Bank, Allied Bank, Gatron Industries, Merit Packaging and Murree Brewery, up by Rs5 to Rs6.35.

Losers were led by Sanofi-Aventis and Siemens Pakistan, off Rs17.30 and Rs30. Other notable losers included EFU Life, Arif Habib Ltd, IGI Insurance, Moon Pakistan and Packages, off by Rs5 to Rs8.

Trading volume rose to 340m shares from the previous 272m shares as gainers held a strong lead over the losers at 203 to 159, with 49 shares holding on to the last levels.

Askari Bank led the list of actives on rumours of bonus shares, firm by Rs2 at Rs101.80 on 21m shares, followed by National Bank, sharply higher by Rs5 at Rs261 on 20m shares and Bank of Punjab, up by Rs2.05 at Rs117.55 on 18m shares.

TRG Pakistan, steady by 50 paisa at Rs13.40 also on 18m shares, PICIC, higher by Rs3.85 at Rs81.15 on 15m shares, JS Bank, firm 80 paisa at Rs19.95 on 15m shares and D.G. Khan Cement, easy 15 paisa at Rs114.60 on 10m shares.

Other actives included Arif Habib Securities, off Rs3.30 on 10m shares followed by WorldCall Telecom, steady by 30 paisa on 9m shares and Callmate Telips, lower by 15 paisa on 8m shares.

FORWARD COUNTER: National Bank led the list of actives on this counter on market talk of its GDR followed by the United Bank, up by Rs5.45 at Rs261.75 on 6m shares followed by D.G. Khan Cement, easy 10 paisa at Rs115.20 also on 6m shares and Bank of Punjab, up by Rs1.25 at Rs117.50 on 6m shares.

Askari Bank followed them, higher by Rs1.80 at Rs102.15 on 5m shares and Lucky Cement, easy by 15 paisa at Rs121.65 on 4m shares. Others were modestly traded but mostly on the higher side.

DEFAULTER COS: Active trading was again witnessed on this counter amid market talk of management changes. Japan Power again came in for strong selling at the recent higher levels and fell by 20 paisa at Rs5.95 on 1.804m shares followed by Saitex Textiles, up by 25 paisa at Rs1.05 on 0.598m shares and Asset Investment Bank, higher by 55 paisa at Rs4.95 on 0.586m shares.

Nimir Chemical was traded unchanged at Rs3.80 on 0.524m shares followed by Zeal-Pak Cement, unchanged at Rs5.10 on 0.377m shares and Norrie Textiles, easy by 10 paisa at Rs2.60 on 0.484m shares.