KARACHI, Jan 2: Stocks staged a smart recovery on Friday on strong covering purchases on selected counters by both the financial institutions and the leading investors triggered by reports that State Enterprise Fund of Rs20 billion will be operative by early next week.

Analysts said the current recovery drive could get fresh momentum during the next week as by that time general investors would have finalised their investment strategy at the prevailing lows.

The KSE 100-share index recovered 40.39 points at 5,793.57 but the weekend selling pushed it down from the session’s peak level of 5,852.10 points. The market capital also recovered Rs14.784 billion at Rs1,842.651 billion.

But its junior partner, the KSE 30-share index showed a fresh fractional fall of 0.75 points at 5,344.22, while the KMI 30-share index rose by 170.86 points at 6,832.44.

An air of optimism prevailed in the market as the opening witnessed a spate of buying orders, notably on the eight public sector leading shares, National Bank, OGDC, PTCL, Pakistan Petroleum and some others, which will form the latest portfolio on the newly-constituted fund, floor brokers said, adding instances of sympathetic buying were also witnessed on some other counters.

The Rs20 billion fund is too small viewed in the backdrop of massive losses suffered by the market and its capital base but it certainly gave the needed psychological boost to the market and the investor.

“After a protracted bearish spell spread over the last about eight months, the market is back on the rails and investors greeted the change with open arms amid hopes that the worst may be over,” analysts said.

It has to go a long way to regain its past glory although both the economy and the political background news including the current row with India could take its toll at any time in a prevailing fluid situation, they said.

But some others said the future direction of the market will be known by early next week as by that time most of the investors would have redefined their investment priorities at the current level and the stocks which will form their portfolios for the new year.

After months of persistent decline, plus signs dominated the list under the lead of New Jubilee Insurance, National Refinery, Packages, Glaxo-SKF, Abbott Lab, Engro Chemical, Pakistan Oilfields, Pakistan Petroleum, Millat Tractors, BOC Pakistan and Unilever Pakistan, which recovered Rs3.25 to Rs6.85. But Unilever Pakistan led the list, up by Rs72.29.

Losers were led by leading MNCs, notably Rafhan Maize and Siemens Pakistan, which were marked down by Rs113.11 and Rs56.50 followed by MCB Bank, Adamjee Insurance, EFU Insurance, IGI Insurance, PSO, Pakistan Refinery, Indus Motors, PECO and Al-Ghazi Tractors, off Rs4.67 to Rs10.90.

Traded volume soared to 211m shares from the previous 76m shares as gainers held a strong lead over the losers at 166 to 71, with four shares holding onto the last levels.

OGDC topped the list of actives, lower by 56 paisa at Rs46.94 on 29m shares followed by Pak Start Fund, easy by six paisa at Rs1.78 on 24m shares, PTCL, lower by 38 paisa at Rs15.51 on 20m shares, United Bank, off Rs1.22 at Rs33.85 on 11m shares, D.G. Khan Cement, higher by 64 paisa at Rs20.85 on 7m shares, NIB Bank, steady by 41 paisa at Rs5.30 also on 7m shares and TRG Pakistan, firm by 23 paisa at Rs2.28 on 7m shares.

Hub-Power followed them, higher by 36 paisa at Rs15.45 on 6m shares, National Bank, higher by Rs2.39 at Rs50.20 also on 6m shares and Fauji Fertiliser Bin Qasim, up Re1 at Rs13.69 on 5m shares.

FORWARD COUNTER: Share values on this counter maintained their downward drive in the absence of support from any quarter and fell further under the lead of MCB Bank, Adamjee Insurance, PSO, Habib Bank, United Bank, Bank of Punjab and some others falling sharply lower but without any deal.

DEFAULTER COMPANIES: Zeal Pak Cement again led the list of actives on this counter and was quoted higher by two paisa at Rs0.58 on 4.099m shares followed by Japan Power, up 19 paisa at Rs1.91 on 0.669m shares, Unity Modaraba, steady by five paisa at Rs0.35 on 82,500 shares, National Asset Leasing, higher by 10 paisa at Rs0.47 on 71,000 shares.

Invest Bank followed them, higher by 43 paisa at Rs2.23 on 47,500 shares and Quice Foods, up five paisa at Rs1.50 on 28,000 shares. All others were also actively traded.

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Market at a glance

Jan 2,2009

TONE:steady,total listed 653,actives 241,inactives 412,plus 166,minus 71,unc four

KSE 100-SHARE INDEX:previous 5,753.57,Friday’s 5,793.57,plus 40.39 points

MARKET CAPITAL;previous Rs.1,827.867bn,Friday’s 1,842.651bn,plus 14.784bn

KSE 30-SHARE INDEX:previous 5,341.97,Friday’s 5,344.22,minus o.75 points

KMI 30-SHARE INDEX:previous 6,661.58,Friday’s 6,832.44,plus 170.86 points

TOP TEN:gainers Unilever Pakistan Rs.72.29,Millat Tractors 6.85,Attock Petroleum 6.85,Pakistan Petroleum 5.28,Pakistan Oilfields 4.86

LOSERS:Rafhan Maize,Rs.113.11, Siemen’s Pakistan 56.50,Pakistan Services 20.45,Al-Ghazi Tractors 10.90,PECO 9.17.

TOTAL VOLUME:210.762m shares

VOLUME LEADERS:OGDC 28.796m,Pak Start Fund 23.848m,PTCL 19.505m,United Bank 10.882m,D.G.Khan Cement 7.285m.

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