KARACHI, Jan 9: Stocks on Wednesday rose from the previous lows on active short-covering aided largely by predictions of easing of military standoff with India on the borders after the president’s proposed policy statement during the next couple of days.

The KSE 100-share index recovered 18.10 points at 1,387.48 as compared to 1,369.38 a day earlier as leading bases shares, notably PTCL, Hub-Power and PSO staged smart rallies on strong support.

The rebound was as swift as the Tuesday’s snap reversal as bulls fought back expecting something positive from the president’s speech “what the US senators called could be historic” during the next couple of days.

Although conflicting views were aired by stock the analysts about the proposed speech of the president, all were united that it could be positive as far as the market is concerned.

“It could be a major policy statement on the Kashmir issue,” some analysts guess, adding “it could be about the unilateral withdrawal of troops from the borders to ease tension leading to peace or induction of interim political set-up to hold general elections in October”.

Whatever the president may have in his mind about the prevailing tension and uncertainty, the market reacted favourably without awaiting the details. “Such is the unpredictable behaviour of the market as reacts to external developments according to its own perceptions,” says a broker.

Speculation gripped the market after the statement of the US senators, who visited Pakistan recently and met the president and lauded his role as US-led coalition partners against terrorism.

An air of optimism prevailed in the market as all the guess works and predictions could lead to a bull market and investors responded to them taking them as a bull factor.

The near-term market outlook appears a bit bullish but whether or not the KSE 100-share index could breach through the barrier of 1,400 point is anybody’s guess as it failed to sustain this level after several abortive attempts backed by good financial news.

Bulk of the support remained confined to the pivotals, which fully recovered the overnight snap losses amid active trading. The rally was, however, broad-based.

All the leading shares finished higher under the lead of Lever Brothers, Nestle MilkPak, PSO, Shell Pakistan and ICI Pakistan, up by Rs1.55 to Rs9.45.

Other good gainers were led by Javed Omer, New Jubilee Insurance, Pakistan Oilfields, Al-Ghazi Tractors, Engro Chemical and Berger Paints, which posted gains ranging from Rs1.15 to Rs1.50.

Losers were led by A.A.Textiles, KASB & CO, Gatron Industries and Fateh Industries, off one rupee to Rs2.90, while other losses were fractional.

Trading volume rose to 98 million shares from the previous 91 million shares as advancing shares forced a strong lead over the losers at 110 to 45, with 38 shares holding on to the last levels.

Hub-Power topped the list of most actives, up 25 paisa at Rs18.65 on 34m shares followed by PTCL, firm by 10 paisa at Rs15.20 on 22m shares, PSO, higher by Rs2.65 at Rs101.05 on 11m shares, Fauji Fertilizer, up 50 paisa at Rs46 on 6m shares and Engro Chemical, higher by Rs1.20 at Rs56.30 also on 6m shares.

Other actives were led by ICI Pakistan, up Rs1.55 on 3.591m shares, D.G. Khan Cement, firm by 30 paisa on 2.879m shares, Sui Northern, up 65 paisa on 2.469m shares, Lucky Cement, lower 35 paisa on 2.274m shares and MCB, higher 40 paisa on 1.720m shares.

FUTURE CONTRACTS: Engro Chemical and PSO were leading among the gainers, up by Rs1.31 and Rs2.90 at Rs56.40 and Rs101.50 on 0.249m and 0.262m shares, respectively.