KARACHI, Nov 7: After having passed through a technical correction during the last two sessions, stocks were back on the rails as institutional traders and general investors resumed their covering operations at the lower levels.

Although the KSE 100-share index managed to finish above the resistance level of 1,350, but its initial attempts to get through met with strong bear onslaught. The market did, however, rise on each tip, notably positive ones.

The KSE index finally ended at 1,353.78 as compared to 1,340.88 a day earlier, showing an increase of 12.90 points as all the leading base shares finished partially recovered.

The recovery was led by heavy covering purchases in the PTCL ahead of its board meeting tomorrow, and rumours of an improved dividend at the rate of 25 to 30 per cent were rife. If payout is below it, its share could ease further but not as the Hubco did despite an EPS of Rs.9.50.

“Market talk of after-tax profit of Rs.18 billion for the year ended June 2001, a higher figure than the previous year generated a hectic two-way activity in the PTCL share throughout the session,” stock analysts said. “But the general perception is that it may not exceed the high mark of 12 billion.”

However, active speculative buying in it generated a lot of covering purchases in other blue chips including ICI Pakistan and Engro Chemicals, which have received massive battering during the last two sessions. And so did PSO and Shell Pakistan, which have been under pressure since the second downward revision of selling prices of petroleum products.

Although the market moved either-way after the index breached the barrier of 1,350 point but strong support at the fag-end of the session reflects that investors are in to cover positions at the current levels.

“The PTCL dividend announcement may not prove a trend-setter, although it could jolt the market both ways temporarily,” stock analysts at the W.E. Financial predict. “What could be an important cushion for it will be the outcome of Musharraf-Bush Washington meeting on Nov 10.”

The market has shown a lot of potential to rise at each tip, indicating that there is no dearth of buyers but lack of stimulating news, they said.

With Friday’s strike weighing heavily against the market sentiment, stock analysts at the Finex Securities believe a strong turnaround appears overdue after the Washington meeting.

Plus signs forced a modest edge over the minus ones, major gainer among them being Lever Brothers, which rose by Rs.60 to Rs.799 on active support.

Other good gainers were led by Gatron Industries, Gadoon Textiles, Tariq Glass, Pak-Suzuki Motors, Engro Chemical, BOC Pakistan, ICI Pakistan and Central Insurance, which rose by Rs.1.40 to 3.

Losers were led by Balochistan Wheels, Jahangir Siddiqi & Co, Din Textiles, Adamjee Insurance, Cherat Paper, Glaxo-Wellcome and Pakistan Oilfields, off by Rs.1.10 to 3.50.

Trading volume was maintained the overnight level of 72m shares as advancing shares have a slight edge over the losing ones at 73 to 70, out of 188 actives with 45 shares holding on to the last levels.

PTCL was actively traded, up 20 paisa at Rs.17.45 on 30m shares followed by ICI Pakistan, sharply higher by Rs.2.85 at Rs.47.70 on 13m shares, PSO, up 20 paisa at Rs.101.50 on 9m shares, Hub-Power spot firm by five paisa at Rs.22 on 5m shares and Engro Chemical, higher by Rs.1.85 at Rs.54.85 on 4m shares.

Other actives were led by Sui Northern Gas, firm by 15 paisa on 3.338m shares, Adamjee Insurance, off Rs.1.70 on 0.880 shares and Fauji Fertiliser, up 70 paisa on 0.831m shares.

FUTURE CONTRACTS: Trading on this counter was mixed: prices of four shares rose, while three fell, with two holding on to the last levels.The largest rise was noted in Engro Chemical, which rose by Rs.1.30 at Rs.53.50 on 35,500 shares, while Fauji Fertilizer and MCB were leading among the losers down 45 paisa each.