KARACHI, July 22: Stocks staged a snap recovery on Tuesday as investors covered their positions across-the-board amid a galore of upper locks triggered by setting up of Rs20 billion equity support fund.

The positive response to the fund was well-reflected in the steep rise of the KSE 100-share index which retrieved another 410.51 points or four per cent at 10,784.81 and Rs121.718bn to the market capital on strong covering purchases. Its junior partner the KSE 30-share index was up by 537.29 points at 12,096.87.

Despite the fact that the size of the fund was much below the talk of Rs50 billion, it worked as a confidence–building measure and would operate as a watchdog and stabiliser to protect the interest of small investors in an uncertain market or in a financial turmoil.

The announcement of establishing of the fund by Finance Minister Naveed Qamar who visited the KSE on Tuesday was the second morale booster for the market after the SBP governor on Monday had extended the limit of bank stock market exposures to June 30, 2009, analysts said.

“No one could deny the fact that the basic market fundamentals are still terribly strong, but they are weighed down by the external factors and have driven investors well beyond their safe havens, analysts said.

The second interim dividend at the rate of 250 per cent (first 350 per cent already paid) by the Rafhan Maize Products signals that the payouts for the financial year ended June 30, 2008 may be on the higher side.

But investors have other worries which need to be removed if they are to be lured back in the trading arena again under the lead of foreign funds.

The market has demonstrated in more than one ways that it has the potential to bounce back from any lows after each shock in response to positive news, they said. “The bulk of support however came from the financial institutions and mutual funds,” they added.

“After having eroded $30 billion from the market capital during the last three months owing to political uncertainty and situation in Fata, the market is still needs more psychological pushes to keep it in a positive mood,” another analyst observed.

He said the next couple of sessions will show whether or not investors stay in the market or exit after taking profits at the last two days price flare-up on selected counters.

Unilever and PSO were again among the top gainers, up by Rs105 and Rs20.26, followed by Arif Habib Ltd, Habib Bank, MCB Bank, Adamjee Insurance, Lakson Tobacco, National Refinery, Attock Petroleum, PSO, Shell Pakistan, Pakistan Oilfields, Pakistan Petroleum, Millat Tractors, Dawood Hercules, Engro Chemical, National Foods and Clariant Pakistan, which were quoted higher by Rs7.98 to Rs20.26.

Losses on the other hand were mostly fractional barring EFU General Insurance and JS Global Capital which fell by Rs16.30 and Rs15.60 respectively. They were followed by EFU Life, Indus Motors, Service Industries, Murree Brewery, Sanofi-Aventis and Al-Ghazi Tractors, off by Rs5.70 to Rs13.60.Trading volume rose to 135m shares from the previous 94m shares as gainers held a strong lead over the losers at 227 to 67, with 12 shares holding on to the last levels.NIB Bank again topped the list of actives, up by Re1 at Rs10.48 on 12m shares followed by Bank of Punjab, easy by 54 paisa at Rs22.50 on 7m shares and Arif Habib Securities, higher by Rs6.51 at Rs136.71 also on 7m shares.

OGDC, sharply higher by Rs5.68 at Rs119.39 on 5m shares, MCB Bank, up by Rs11.07 at Rs232.50 on 4m shares, Fauji Fertiliser Bin Qasim, steady by Rs1.34 at Rs28.29 on 4m shares and National Bank, higher by Rs5.77 at Rs121.25 on 4m shares.

Pakistan Reinsurance Company fell by Re1 at Rs59.12 on 4m shares, Zeal Pak Cement, up by 35 paisa at Rs2.13 also on 4m shares and Javed Omer & Co, firm by 75 paisa at Rs37.02 on 3m shares.

FORWARD COUNTER: NIB Bank also actively traded on the cleared list, up by Re1 at Rs10.60 on 2m shares its ruling July contract was higher by 95 paisa at Rs10.50 on 0.941m shares, Fauji Fertiliser Bin Qasim, up by Rs1.34 at Rs28.28 on 0.785m shares and JS & Co, higher by Rs17.84 at Rs374.79 on 0.725m shares.

DEFAUTER COMPANIES: Active trading was witnessed on the cleared list as investors indulged in alternate bouts of buying and selling apparently in sympathy with return of the bull market in ready section. Half a dozen shares came in for active support at the lower levels and ended fully recovered.

Leading among them was Norrie Textiles, up by 21 paisa at Rs2.03 on 1.256m shares followed by Unity Modaraba also up by 21 paisa at Rs1.01 on 0.894m shares, Crescent Standard Modaraba, higher by 35 paisa at Rs2.25 on 0.262m shares and Japan Power, firm by 10 paisa at Rs5.35 on 0.251m shares.

Invest Bank was the only exception which fell by Re1 at Rs8.90 on 0.112m shares while National Asset Leasing and some other finished higher.

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July 22,2008

Market at a glance

TONE: firm total listed 652, actives 306, inactives 346, plus 227,minus 67,unc 12

KSE 30-SHARE INDEX; previous 11,559.58, Tuesday’s 12,096.87, plus 537.29 points

KSE 100-SHARE INDEX: previous 10,374.30, Tuesday’s 10,784.81, plus 410.51 points

MARKET CAPITAL: previous Rs.3,244.880bn, Tuesday’s 3,366.598bn,plus 121.718bn

TOP TEN: gainers Unilever Pakistan Rs.105.00, PSO 20.26, Pakistan Oilfields 14.22, Dawood Hercules 13.77.Attock Petroleum 13.00

LOSERS: EFU General Rs.16.30, JS Global Capital 15.60, Al-Ghazi Tractors 13.60, Sanofi-Aventis 11.33, EFU Life 7.58.

TOTAL VOLUME: 135.254m shares

VOLUME LEADERS: NIB Bank 11.821m,Bank of Punjab 7.169m,Arif Habib Securities 6.446m,OGDC 4.694m,MCB 4.008m shares.