KARACHI, July 23: The share market on Monday remained in a bullish frame of mind followed by fresh strong short-covering by the financial institutions in the banking, oil and cement shares aided partly by reports of higher corporate earnings. The KSE 100-share index gained another 309 points or 2.3 per cent at 13,660.36.

“The rally appears to be speculative and inspired one as the background news are terribly negative,” said a leading analyst, adding “those who are trapped in the last week’s massive plunge appear to be behind it”.

Bulk of support was originated from the local institutions and punters, while foreign investors were conspicuous by their absence for obvious reasons including the US threats and law and order situation.The restoration of the Chief Justice, market talk of removal of CFS cap on a number of shares and revival of strong foreign demand on selected counters were some of the other factors supporting the rally.

The important factor was that investors ignored the repeated US threats of direct strike on the Al-Qaeda targets in the tribal areas and its likely impact on the share market, said a leading floor broker, adding “it reflects that investors are inclined to follow higher corporate results rather than being weighed down by the US threats”.

The KSE 100-share index recovered another 308.57 points or 2.31 per cent at 13,660.36, adding Rs100bn to the market capital at Rs4,020bn. The free-float 30-share index rose by 404.68 points at 16,479.26.

“It is steadily rising to attain its recently hit peak level of well over 14,000 points and if all goes well with background news, it could rise above that level,” analysts said.

“It was not a single factor behind the sustained run-up that too in tense political situation, which aided to market to perform terribly well but a combination of them, which drove bears out of the market,” analysts said.

Active support remained confined to most of the second-liners as a section of investors played safe amid fears that the market could again retreat from the current level.

Plus signs again dominated the list as overvalued shares virtually raced towards their pre-reaction level under the lead of Siemens Pakistan and JS & Co, up by Rs29.75 and Rs82.50 respectively, followed by Javed Omer, Arif Habib Ltd, Adamjee Insurance, MCB, EFU General and Life, National Refinery, Mari Gas, Millat Tractors, Shell Pakistan, Pak-Suzuki Motors, Pakistan Engineering, Sanofi-Aventis, Packages, Colgate Pakistan and Attock Petroleum, which rose by Rs10.95 to Rs20.

Losses on the other hand were fractional barring Nestle Pakistan and JS Global, off Rs25 and Rs11. They were followed by Mirpurkhas Sugar, Singer Pakistan, Zulfiqar Industries and Gillette Pakistan fell by Rs3.80 to Rs5.

Trading volume, however, did not keep pace with the price flare-up or rising market as those investors who had purchased shares at much higher rates last week kept to the sidelines anticipating fresh increase in prices of their portfolio shares.

The trading volume showed a modest rise at 275m shares from the previous 260m shares as gainers led the losers by 289 to 68, with 16 shares holding on to the last levels.

Fauji Fertiliser Bin Qasim topped the list of actives, up by 70 paisa at Rs46.55 on 15m shares followed by TRG Pakistan, steady by 60 paisa at Rs14.45 on 15m shares and Dewan Salman, up by Re1 at Rs12.70 on 12m shares.

Fauji Cement, higher by Re1 at Rs21.25 on 10m shares, Javed Omer & Co, higher by Rs10.80 at Rs227.40 also on 10m shares and Lucky Cement, up by Rs5.85 at Rs123.20 on 9m shares.

Other actives were led by Pak PTA, steady by 25 paisa on 10m shares, WorldCall Telecom, up by 60 paisa also on 10m shares and Bosicor Pakistan, higher by Re1 on 9m shares.

FORWARD COUNTER: National Bank came in for active support at the lower level and led the list of actives on the cleared list, up by Rs4.65 at Rs242.65 on 4m shares, followed by Fauji Fertiliser Bin Qasim, steady by 89 paisa at Rs46.79 on 3m shares and Bank of Punjab, higher by Rs4.80 at Rs101.80 also on 3m shares.

Lucky Cement followed them, higher by Rs5.89 at Rs123.79 on 3m shares and MCB, sharply higher by Rs15.60 at Rs.327.60.

DEFAULTER COS: Nimir Chemicals led the list of actives on this counter, up by 20 paisa at Rs4.20 on 0.797m shares followed by Zeal Pak Cement, higher by 35 paisa at Rs6.15 on 0.449m shares and Japan Power, up 85 paisa at Rs9.50 on 0.412m shares.

Mukhtar Textiles off 35 paisa and Quice Foods up by 45 paisa at Rs2.35 and Rs5.20 on 0.239m and 0.204m shares respectively.

DIVIDEND: Pakistan Premier Fund, cash 25 per cent, bonus share 15 per cent, Engro Chemical Pakistan, interim 20 per cent, Reliance Income Fund, 6.53 per cent bonus shares, Atlas Income Fund, bonus shares 10 per cent.