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Share index stages smart recovery on strong fund buying

KARACHI - The KSE 100-share index yesterday staged a broad recovery of over two per cent or 202.16 points at 9.909.45 on strong buying extended by equity market support fund on the oil and banking counters at the attractively lower levels, what analysts said, may be a positive investor reaction to the reports of president's impeachment.

'But the coalition partners accord on the president's impeachment appears to be partial settling down of dust on the political front but no one could precisely predict about the surviving side in the fight between the giants,' said a leading analyst Hasnain Asghar Ali.

Tabish Hassan, another leading stock analyst attributed the snap rally that too at the weekend session, which generally attracts profit-selling to, strong rumours that the government has allowed the listed companies to increase their investment in their shares out of their reserves by 25 per cent to 50 per cent.

He said those who had made massive investment in the T. Bills have also been asked to invest in shares after the maturity of TB 'Along with market support fund, both these steps could give the market needed depth and restore investor confidence in the coming sessions,' he predicts.

However, led by the fund, general investors were not inclined to miss the rising market and rode the bandwagon in a bit hurry and allowed the market to finish the weekend session on a positive note, he said.

Leading shares, notably National Bank, MCB, OGDC, Pakistan Petroleum, Arif Habib Securities, Engro Chemical were in the forefront of rising shares which led the market advance.

'The thin volume reflects judicious investors preferred to play safe as much water has still to flow down the bridge,' analyst Faisal A. Rajabali said, adding 'the president has refused to resign and indicated to fight out the impeachment to clear his position.'

The weekend rally, therefore, could be deceptive and most of the investors kept to the sidelines rather than being lured by the current lower levels.

'Indications are that the market will follow the undercurrent of political news and their perceptions how the future wind will blow before making fresh commitments even on the blue chip counters.'

Trading volume fell to 89 million shares from the previous 120 million shares but gainers held a strong lead over the losers at 178 to 81, with 15 shares holding on to the last levels.