KARACHI, July 30: Stocks staged a snap rebound of about four per cent on Wednesday on the analysts’ perception that the one per cent hike in discount rate would not have any negative impact on the share business triggering buystops at the current lows.

The KSE 100-share index recovered 405 points at 10,853.02.

The lead apparently came from the institutional traders notably the Equity Market Fund and others who rode the bandwagon causing a snap rally despite the fact that background news on the political front were not that encouraging.

Interim cash dividends plus bonus shares by the leading fertiliser and other companies were on the higher side of the market expectations also aided the sustained rally, floor brokers said.

The question now being asked is whether the market will follow its own technical demands or play to the tune of political developments and news from tribal areas, some analysts said. “One should not jump to hasty conclusions at this stage as the snap rally could be deceptive,” they warned.

“The talk of tight monetary policy has eroded share values by 5.34 per cent and wiped out Rs175 billion from the market capital during the last two sessions on panic-selling amid fears of above one per cent hike in discount rate,” analyst Hasnain Asghar Ali said.

The market needed an excuse to respond to its technical demands and that came in the form of below market expectations hike in the interest rate, he added.He said the one per cent hike in the interest rate was in line with analysts’ perception and well adjustable in a highly oversold market viewed in the backdrop of CFS and CFS MK-2 prevailing interest rates on the forward counter.

The KSE 100-share index recovered 3.87 per cent or 404.83 points and closed around the session’s high at 10,853.02 as leading base shares virtually raced towards their pre-reaction levels under the lead of OGDC, Pakistan Oilfields, MCB Bank, National Bank, Arif Habib Securities, Dawood Hercules and Engro Chemical.

Its junior partner rose by 541.20 points or 4.56 per cent at 12,405.25 points. Most of them ended with upper locks.

“The share market has been in a highly oversold position owing to a protracted bearish spell weighed down by negative news needed correction which came in the form of short-covering,” analyst Ahsan Mehanti said.

Plus signs dominated the list under the lead of JS & Co and EFU Life, up by Rs17.65 and Rs15.99, followed by Habib Bank, MCB Bank, EFU General and Life, Attock Refinery, Attock Petroleum, PSO, Mari Gas, Pakistan Oilfields, Pakistan Petroleum, Engro Chemical and Dawood Hercules on post-dividend buying, which posted gains ranging from Rs8.47 to Rs11.99.

Prominent losers were led by Shezan International and National Foods, off Rs17.57 and Rs14.99 respectively. They were followed by Otsuka Pakistan, Mitchell’s Farms, Indus Motors, Service Industries and Shell Pakistan, off by Rs4.15 to Rs10.

Trading volume showed a modest rise at 117m shares but gainers held a strong lead over the losers at 223 to 73, with 13 shares holding on to the last levels.NIB Bank topped list of actives, up 95 paisa at Rs10.75 on 15m shares followed by OGDC, up Rs4.90 at Rs117.50 on 8m shares, Arif Habib Securities, higher by Rs6.70 at Rs140.70 on 7m shares, Bank of Punjab, firm by Rs1.43 at Rs30.13 on 6m shares, National Bank, higher by Rs6 at Rs126.04 on 4m shares and Engro Chemical, up Rs10.35 at Rs219.95 on 4m shares. Fauji Cement was traded higher by Re1 at Rs8.11 on 6m shares.

Other actives were led by Zeal Pak Cement, easy by one paisa at Rs2.08 on 4m shares, Lucky Cement, up Rs3.48 at Rs82 also on 4m shares and First Prudential Modaraba, steady by 12 paisa at Rs4.12 on 3m shares.

FORWARD COUNTER: NIB Bank also led the list of actives on the cleared list and was marked up by 98 paisa at Rs10.98 on 2m shares followed by OGDC, higher by Rs5.10 at Rs118.30 on 1m shares and Engro Chemical, sharply higher by Rs10.55 at Rs221.55 on 0.922m shares.

Lucky Cement followed them, higher by Rs3.37 at Rs82.79 on4m shares, shares and Arif Habib Securities, up by Rs6.75 at Rs141.90 on 0.867m shares.

DEFAULTER COMPANIES: Norrie Textiles led the list of actives on this counter, steady by five paisa at Rs1.85 on 0.464m shares followed by National Asset Leasing also firm by five paisa at 80 paisa on 0.126m shares. All others were modestly traded by mostly on the higher side in sympathy with the ready section.

DIVIDEN AND BONUS SHARES: Dawood Hercules, interim cash 10 per cent plus bonus shares of the same amount, Arif Habib Ltd, cash 25 per cent, bonus shares of an identical amount, Fauji Fertiliser, second interim at the rate of 35 per cent.

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July 30,2008

Market at a glance

TONE:firm,total listed 653,actives 309,inactives 344,plus 223,minus 73,unc 13

KSE 30-SHARE INDEX:previous 11,864.05,Wednesday’s 12,405.25,plus 541.20 points

KSE 100-SHARE INDEX:previous 10,448.19,Wednesday’s 10,853.02,plus 404.83 points

MARKET CAPITAL:previous Rs.3,266.931bn,Wednesday’s 3,385.420bn,plus 118.489bn

TOP TEN:gainers JS & Co17.65,EFU Life 15.99,Attock Petroleum 14.90,Pakistan Oilfields 14.40,Dawood Hercules 13.65

LOSERS:Shezan International Rs.17.57,National Foods 14.99,Shell Pakistan 10.00,Mitchell’s Fruits 6.54,Service Industries 6.41

TOTAL VOLUME:166.569m shares

VOLUME LEADERS:NIB Bank 14.540m,OGDC 7.844m,Arif Habib Securities 6.652m,Fauji Cement 5.930m,Bank of Punjab 5.604m shares.