KARACHI, Feb 28: The share market on Monday bounced back from the recent lows on active short-covering by the institutional investors but foreign support remained a bit shy in the presence of some political depressants. The benchmark KSE 100-index recovered 65.71 points at 11,289.23 but ended off the day’s best level.
After having fallen by about eight per cent during the last week on panic-selling triggered by series of local political concerns notably worries over the ties with the US on Raymond Davis immunity issue, bulls fought back and drove bears out at least for the near-term, some analysts said.
The early rise to the session’s peak level at 11,363.64 indicated that the current recovery drive may continue in the coming sessions also as most of the leading shares now ensure a massive capital appreciation, they said.
The weakness (off Rs6.21) of the OGDC, which holds a weightage of 16 per cent in the index, was however overshadowed by steep rise in values of other leading base shares under the lead of Fauji Fertiliser, Engro Corporation and Pakistan Oilfields, which recovered Rs4.92 to Rs8.76.
The benchmark index, which has been moving within its predetermined lows and highs for the last couple of weeks, rebounded as it had already hit the stipulated low and would steadily rise to its high of well over 12,000 points during the current recovery process, they hoped.
“Foreign investors will remain selective buyers in the low-priced oil sector amid strong rumours of sharp increase in the selling prices of petroleum products,” analysts Ahsan Mehanti said “but the continued weakness of the index-heavy weight OGDC worries them”.
Analyst Hasnain Asghar Ali said apart from technical factors in a highly oversold market unofficial announcement about the launch of leverage product for the ready section could also prove one of the in stant stimulant, although it was due to be officially launched by the end of the current month.
But follow-up support remained a bit shy as investors were worried by some of the sensitive issues both on the political and economic front although broad recovery indicated that the worst may now be over, he said.
Analyst Samar Iqbal said apart from technical factors, the market also took a breather after the issue of hanging sword of rollover positions were settled amicably.
Leading gainers were led by Nestle Pakistan and Unilever Pakistan, up by Rs48 and Rs102.78. Prominent los ers were led by OGDC, off Rs6.21, followed by Rafhan Maize and Wyeth Pakistan, lower Rs77.51 and Rs31.26.
Turnover figure fell to 86.234m shares from the 157m shares but gainers held a strong lead over the losers at 190 to 84, with 90 shares holding onto the last levels.
The active list was topped by Lotte Pakistan, firm by 47 paisa at Rs14.53 on 14m shares followed by Arif Habib Corporation, up 93 paisa at Rs19.90 on 9m shares, National Bank, up Rs1.12 at Rs68.19 on 6m shares, Azgard Nine, steady by 66 paisa at Rs8.83 on 5m shares, JS & Co, higher by 77 paisa at Rs8.97 on 4m shares, Bank of Punjab, firm by 41 paisa at Rs7.11 on 3m shares and Fauji Fertiliser Bin Qasim, up 96 paisa at Rs40.33 on 3m shares.
OGDC sharply lower by Rs6.21 at Rs145.39 on 3m shares followed by Fauji Fertiliser, up Rs4.92 at Rs145.39 on 3m shares and Hub-Power, higher by Rs1.78 at Rs38.74 on 2m shares.
FUTURE CONTRACTS: The active list on this counter was topped by Azgard Nine, firm by 65 paisa at Rs8.88 on 0.978m shares followed by Pakistan Oilfields, higher by Rs8.76 on 0.682m shares and National Bank, up Rs1.12 at Rs68.58 on 0.651m shares.
Engro Corporation sharply higher by Rs5.10 at Rs173.87 on 0.426m shares and Nishat Mills, higher by Rs2.28 at Rs61.20 on 0.347m shares.
DEFAULTER COMPANIES: Japan Power again led the list of actives, up eight paisa at Rs1.38 on 80,009 shares followed by S.S. Oils, higher by 96 paisa at Rs4.56 on 76,000 shares and Ravi Textiles, up 18 paisa at Rs1.19 on 32,251 shares.
