KARACHI, Sept 23: Stocks on Tuesday showed signs of recovery in response to reports of proposed market support fund of Rs20 billion mooted at Monday’s meeting between the KSE high-ups and the central bank governor on the perception that investor liquidity problems may be solved.

Both the daily turnover figure and the number of advancing shares were on the higher side and in a way reflected that the market reaction to the State Bank meeting may have been much bigger sans flooring on the index.

After initially rising to 9,211.67 points, the KSE 100-share index finally ended with a fresh fractional decline of 0.71 points at 9,199.51 but on the other hand the KSE 30-share index rose by 0.42 points at 10,064.86 as compared to 10,064.44.

Unlike the previous sessions, the interesting feature was that some of the leading shares, notably, MCB Bank, Engro Chemical, Habib Bank, OGDC and Hub-Power came in for active support and allowed the volume to rise from all-time low of 3.524m shares to about 6m shares.

The review date for the flooring is just a day away and indications are that it would be lifted on Sept 25 amid hopes that there will be enough money to absorb any panic or fresh selling as a section of leading investors will try to build-up long positions at the current lower levels.

The market could fall another 100 to 150 points after the end of the flooring on the index but would rebound from that low on massive short-covering by all and sundry at the current bottom rates, analyst Hasnain Asghar Ali predicts, adding “but chief relief would come from ban on short-selling”.

However, some analysts are a bit skeptical about the fresh funding arrangements or the rescue package on the ground that another NIT managed Rs20 billion fund is already operating in the market but failed to save the situation.

“Downgrading of the credit rating of Pakistani bonds and negative economic outlook by Moody’s in the backdrop of the rupee at an all-time low, suicide attacks and Fata operations all point to a bleak outlook and investors may think twice before opting for new buying even for short-term,” they said.

The big question being debated among the analysts was whether or not foreign investors would return to the market amid fears of some more attacks after the Islamabad blasts, they added.

Leading gainers were led by Unilever Pakistan and National Foods, up by Rs5 and Rs18.97 followed by Meezan Balanced Fund, UTP Large Fund, Engro Chemical, Eye TV and Crescent Steel, which rose by 19 paisa to Re1.

Losers were led by Exide Pakistan and Pakistan Tobacco, off by Rs4.30 and Rs1.11 respectively. Others fell fractionally under the lead of Al-Abbas Sugar, Reliance Insurance, Pak Elektron and Gharibwal Cement, which fell by 15 paisa to 41 paisa.

Trading volume rose to 5.935m shares from the previous 3.524m shares as gainers held a lead over the losers at 20 to 12, with 88 shares holding onto the last levels.

MCB Bank led the list of actives, unchanged at Rs235.75 after rising to Rs241 on 2.782m shares followed by Engro Chemical, up by 23 paisa at Rs180.67 on 0.541m shares, Habib Bank unchanged at Rs138.45 on 0.252m shares, PICIC Fund, also unchanged at Rs6 on 0.250m shares, Southern Electric, higher by 26 paisa at Rs3.96 on 0.232m shares, Meezan Fund, up by Re1 at Rs8.70 on 0.196m shares and OGDC, unchanged at Rs94.43 at Rs0.153m shares.

Eye TV followed them, up 20 paisa at Rs42.20 on 0.144m shares, Hub-Power, unchanged at Rs21.46 on 0.121m shares and Nishat Chunnian, unchanged at Rs12.78 on 0.100m shares.

FORWARD COUNTER: MCB Bank also led the list of actives on the cleared list, unchanged at Rs238.46 on 3.491m shares followed by Engro Chemical, up by 40 paisa at Rs181.40 on 0.360m shares, PTCL, up by 38 paisa at Rs31 on 0.29m shares and Habib Bank, lower by 12 paisa at Rs137 on 0.20m shares.

DEFAULTER COMPANIES: Trading on this counter remained slow in the absence of investors. Stray covering purchases were, however, noted in Taxila Engineering and Al-Asif Sugar, which were quoted higher by 45 and 75 paisa at Rs1.50 and Rs4.90 on 14,500 and 500 shares, respectively.

DIVIDEND: Ismail Industries, cash 15 per cent, Askari Leasing, bonus shares 15 per cent, Kohinoor Energy, cash final 10 per cent, BRR Investment, cash nine per cent, Al-Zamin Leasing, Thatta Cement, Ghazi Fabrics and Descon OxyChem, all nil for their financial years ended June 30, 2008.

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Sept 23, 2008

Market at a glance

TONE: steady,total listed 657,actives 120,inactives 537,plus 20,minus 12,unc 88

KSE 100-SHARE INDEX:previous 9.200.32,Tuesday’s 9,199.51,minus 0.71 points

MARKET CAPITAL:previous Rs.2,852.209bn,Tuesday’s 2,852.174bn,minus 35m

KSE 30-SHARE INDEX:previous 10,064.44,Tuesday’s 10,064.86,plus 0.42 points.

KMI 30-SHARE INDEX:previous 11,224.18,Tuesday’s 11,225.93,plus 1.75 points

TOP TEN:gainers National Foods Rs.18.97,Unilever Pakistan 5.00,Meezan Fund 1.00,UTP Large Fund 0.50,Engro Chemical 0.23.

LOSERS: Exide Pakistan Rs.4.30,Pakistan Tobacco 1.11,Ghariabwal Cement 0.41,Pak Elektron 0.27,Reliance Insurance 0.25.

TOTAL VOLUME:5.935m shares

VOLUME LEADERS:MCB 2.782m, Engro Chemical 0.541m,Habib Bank 0.252m, PICIC Fund 0.250m, Southern Electric 0.232m shares.