KARACHI, July 18: The crisis-ridden stock market on Friday showed signs of recovery in response to some emergency measures taken by the Karachi Stock Exchange (KSE) authorities to put it back on the rails, and analysts said the initial reaction was positive as was reflected by a clipped gain of 21.86 points in the index at 10,234.78 after an early rise of 419 points.

“The lifting of 55 million shares worth Rs3.55 billion by the rescuers from the trapped ones on the CFS counter seems to have given the needed breathing space to many whose confidence in the market has been badly shattered,” said a leading stock analyst Hasnain Asghar Ali, adding “but it is too early to say that the worst is over”.

The massive volatility of 419 points of the KSE 100-share index, however, reflects all is not well with the underlying sentiment as some of the still trapped investors were said to be on the look out for an exit, he added.

The KSE 100-share index managed to finish with a clipped gain of 21.86 points after early having regained 418.78 points at the session’s high of 10,455.69, but the late selling owing partly to weekend considerations pushed it down to finish at 10,234.78.

Some of the leading bank and oil shares, notably National Bank, OGDC, Pakistan Petroleum and Bank Alfalah came in for active short-covering and pushed the index higher.

But on the other hand, its junior partner ended with a fresh modest fall of 48.96 points at 11,407.28, reflecting the weakness of its some top base shares.

“The snap recovery may not be a prelude to the revival of institutional support,” analyst Ahsan Mehani says, adding, “there is no change in the background news, notably the weakness of the rupee, high inflation rate, falling SACRA balances and the political situation.”

The government contribution to the proposed Rs25 billion equity market fund would be Rs12 billion and the willingness of the financial institutions to participate in it in a bigger way could enthuse investors and they may take fresh positions on selected counters at the current lower levels possibly by the next week, he said.

Active short-covering in some of the lead in MNCs, notably ICI Pakistan, Clariant Pakistan, Abbott Lab and Glaxo-SKF reflects the presence of foreign buying though on a modest scale, but analysts said it could reinforce the investor perception of stable market by the next week.

Pakistan Petroleum and Unilever Pakistan were leading among the gainers, up by Rs9.77 and Rs90 followed by JS Investment, Allied Bank, Pakistan Tobacco, National Refinery, Packages, Dreamworld, and Tri-Pack Films, which posted gains, ranging from Rs3.30 to Rs8.

Losers were led by JS & Co and National Foods, off Rs19.71 and Rs16.37, respectively. Other prominent losers included Habib Bank, MCB Bank, Adamjee Insurance, IGI Insurance, New Jubilee Insurance, Attock Petroleum, Pakistan Oilfields, Atlas Honda, HinoPak, Indus Motors, Dawood Hercules, and Sitara Chemicals, which fell by Rs8.34 to Rs13.27.

Trading volume rose to 185m shares thanks to clearing of the CFS positions as gainers and losers were about evenly matched at 128 to 129, with 13 shares holding on to the last levels.

NIB Bank again topped the list of actives, steady by 41 paisa at Rs9.04 on 12m shares followed by National Bank, easy by 92 paisa at Rs109.99 after hitting the session’s high at Rs115.10 also on 12m shares, D G Khan Cement, lower by Rs1.41 at Rs48.60 on 11m shares, Bank of Punjab, up by Rs1.04 at Rs24.25 on 10m shares, Bank Alfalah, higher by Rs1.07 at Rs34.70 on 9m shares, Pakistan Oilfields, off Rs13.27 at Rs271.02 on 7m shares and Lucky Cement, higher by Rs1.12 at Rs75.50 also on 7m shares.

Other actives were led by Nishat Mills, off by Rs3.20 at Rs60.83 on 9m shares, followed by Dewan Cement, steady by 40 paisa at Rs10.45 on 8m shares, and Fauji Cement, steady by four paisa at Rs8.04 on 8m shares.

FORWARD COUNTER: Engro Polymer again led the list of actives on the cleared list, up by 52 paisa at Rs23.52 on 3m shares followed by NIB Bank, firm by 16 paisa at Rs9.01 on 0.730m shares, and D G Khan Cement, off by Rs2.74 at Rs52.14 on 0.632m shares.

Pakistan Oilfields followed them, lower by Rs12.19 at Rs273 on 0.549m shares and OGDC, higher by Rs2.80 at Rs108.30 on 0.473m shares.

DEFAULTER COs: Zeal-Pak Cement again came in for active support on reports of higher exports and was quoted higher by 15 paisa at Rs1.67 on 2.529m shares, followed by Norrie Textiles, firm by 11 paisa at Rs1.77 on 0.897m shares and Unity Modaraba, steady by three paisa at 80 paisa on 0.152m shares.

DIVIDEND: Fauji Fertiliser Bin Qasim, interim at the rate of six per cent.

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July 18,2008

Market at a glance

TONE: steady, total listed 652, actives 270, , inactives 382, plus 128, minus 129, unchanged 13

KSE 30-SHARE INDEX: previous 11,456.24,Friday’s11,407.28, minus 48.96

KSE 100-SHARE INDEX: previous 10,212.92,Friday’s 10.234.78,plus 21.86 points

MARKET CAPITAL: previous Rs.3,192.246bn,Friday’s 3,196.270bn,plus 4.024bn

TOP TEN: gainers Unilever Pakistan Rs.90.00,Pakistan Petroleum 9.77,Dreamworld 8.00,Packages 6.63,Glaxo-SKF 6.47.

LOSERS:JS & Co Rs.19.71,National Foods 16.37,Pakistan Oilfields 13.27,MCB 12.26,Sitara Chemicals 11.99.

TOTAL VOLUME:184.822m shares

VOLUME LEADERS:NIB Bank 11.761m,National Bank 11.741m,D.H.Khan Cement 10.461m,Bank of Punjab 10.353m,Nishat Mills 9.013m shares.