KARACHI, June 3: Stocks judiciously maintained their upward drive for the second consecutive session on Tuesday following steady inflow of both the genuine investment and the speculative buying at the current lows.

The KSE 100-share index recovered another 198.27 points at 12,479.47, adding another Rs61.121 billion to the market capital at Rs3,852.371 billion.

Floor brokers said investors seem to have decided to go by the basic market fundamentals rather than the external depressants as the general perception is that there is no major financial risk to buy selected shares around the current levels.

“I won’t call it the advent of the pre-budget proverbial rally based on some positive budgetary leaks,” analyst Hasnain Asghar Ali said, adding: “Although it has all the signs of it.”

He said the market sentiment was also boosted by reports that a delegation of the KSE and brokers will meet the high-ups in Islamabad prior to the budget due on June 10, to seek extension in the capital gains tax and suggest measures to raise more revenue from the bourse.

The market’s buoyant mood was also well-reflected in the KSE 100-share index, which early after having breached through the barrier of 12,500 points finished with fresh rise of 198.27 points or 1.61 per cent at 12,479.47. Its junior partner also closed with a fresh gain of 317.42 points or 2.22 per cent at 14,638.55.

Bank shares again led the market recovery under the lead of MCB Bank, which has been under pressure for the last couple of weeks as it virtually raced towards its pre-reaction level, up Rs13 at

284.55. Others followed it led by the National Bank.

But analysts said the bulk of the support in the MCB Bank was local and there is no indication of foreign or GDR-related buying as was reflected by low volume.

Cement shares followed them partly on reports of higher exports and partly to 11.5 per cent increase in the allocation of Public Sector Development Programme during the next fiscal year, floor brokers said.

Oil shares were also actively traded at the still lower level on reports of higher interim earnings and market talk of fresh increase in selling prices at the retail levels, they added.

Advancing shares strewn all over the list, leading among them closing with upper locks and held at strong lead over the losing ones under the lead of AKD Capital and Unilever Pakistan, up by Rs29.98 and Rs29. Other prominent gainers, included Thal Jute, JS & Co and JS Global, EFU General and Life, Lakson Tobacco, Attock Refinery, Mari Gas, Shell Pakistan, Siemens Pakistan, BOC Pakistan, Pakistan Services and Unilever Pakistan, which posted gains ranging from Rs10 to 29.98.

Wyeth Pakistan and Colgate Pakistan were prominent among the losers, off by Rs104 and Rs23.50, respectively, followed by Central Insurance, Fazal Textiles, Al-Ghazi Tractors, Pak-Suzuki Motors and Indus Motors, off by Rs5 to Rs12.

Trading volume rose to 159 million shares as gainers held a strong lead over the losers at 246.76, with 20 million shares holding on to the last levels.

NIB Bank led the list of actives, firm by 17 paisa at Rs12.57 on 12m shares followed by D.G. Khan Cement, steady by 79 paisa at Rs76.49 on 11m shares, National Bank, higher by Rs3.46 at Rs169.25 on 9m shares, Arif Habib Securities, up Rs4.75 at Rs165.70 on 8m shares, Bank Al Falah, higher by 85 paisa to Rs48 on 5m shares, Bank of Punjab, steady by six paisa at Rs35.76 also on 5m shares and Hub Power, firm by five paisa at Rs32.20 on 4m shares.

Other actives, included TRG Pakistan, firm by 21 paisa at Rs7 on 6m shares, Lucky Cement, lower 75 paisa at Rs111.25 on 6m shares, JS Growth Fund, up 50 paisa at Rs11.50 on 5m shares.

FORWARD COUNTER: MCB Bank led the list of actives on this counter, higher by Rs13.55 at Rs284.55 on 7m shares followed by Arif Habib Securities, up Rs4.09 at Rs167.36 on 3m shares and Lucky Cement, lower 75 paisa at Rs111.25 on 6m shares.

National Bank followed them, higher by Rs6.99 at Rs171 on 3m shares and JS & Co, sharply higher by Rs15.36 at Rs544.25 on 2m shares.

DEFAULTER COMPANIES: Norrie Textiles came in for modest support and rose by six paisa at Rs2.20 on 1.073m shares followed by Zeal-Pak Cement, up eight paisa at Rs2.79 on 0.785m shares and Japan Power, higher by 21 paisa at Rs5.94 on 0.215m shares.

Unity Modaraba was quoted higher by one paisa at Rs1.07 on 0.162m shares, while others were modestly traded.