KARACHI, Feb 19: Stocks on Tuesday recovered from the previous lows boosted by heavy short-covering in most of the leading base shares after the leading institutional traders provided the needed push to the falling market. The KSE 100-share index recovered 30.15 points or 1.82 per cent at 1,685.52.

After having passed through the technical correction being in an overbought position, recovery based on positive basic fundamentals was inevitable as each fall is generally followed by a big run-up.

“Bears may not be mourning the sudden end of their domain, but may certainly be in a terribly bad mood as the bulls’ action thwarted their well-net negative perceptions,” some analysts say.

The market’s bullish trend despite a long weekend ahead because of Eid holidays, is well-manifested in the range of stocks, which came in for trading and the massive activities in most of the pivotals.

Energy shares rose in unison ahead of PSO board meeting tomorrow (Wednesday), but textile shares did not despite good dividend and dozen of board meetings by the end of the current month.

The KSE 100-share index recovered 30.15 points, initiating its upward journey to the level of beyond 1,700 point and was last quoted at 1,685.52 as compared to 1,655.37 a day earlier as all the leading base shares ended recovered.

It may or not hit the target owing to a long-weekend ahead as the market will remain close from Friday to next Monday. Analysts think it has already found a support level of 1,650 on the lower side and 1,800 on the higher side.

There is no change in the basic fundamentals, which are considered a bit bullish in the market parlance, telling bears it may not be that easy to push the index below the support levels.

Apart from the unfolding details about the latest US aid package, investors are keenly awaiting the early privatization of the two mega units — KESC and PSO — possibly by the end of June, stock analysts said, adding “what seems to have reinforced the perception of a continued bull-run was reports that a massive liability of Rs62 billion of the KESC will be converted into its equity.

PSO remained in strong demand ahead of its board meeting tomorrow (Feb 20), which will give a fair idea of its earnings and sales in the backdrop of fears of a decline. It finished recovered by Rs2.35. Other major shares also ended partially recovered.

Prominent gainers were led by Dewan Salman, Adamjee Insurance, D.G. Khan Cement, Attock Refinery, National and Pakistan Refineries, Reckitt and Benckise and Shell Pakistan, which posted gains ranging from Glaxo-Wellcome Pakistan and Wyeth Pakistan, which fell by Rs5 each, led the list of losers followed by Crescent Lease, Al-Hmad Textiles, Rupali Polyester, Crescent Steel, Sitara Chemical, New Jubilee Insurance and Cherat Paper, off by Rs1.50 to Rs2.50.

Trading volume showed a sizable increase at 192 million shares as gainers forced a strong lead over the losers at 120 to 74, out of 227 actives.

Hub-Power topped the list of most actives, up 45 paisa at Rs27.80 on 81m shares, PTCL, higher 30 paisa at Rs17.60 on 38m shares, Sui Northern, firm 60 paisa at Rs13.60 on 15m shares, PSO, up Rs2.35 at Rs122.60 on 9m shares and D.G. Khan Cement, higher Rs1.50 at Rs9.90 on 8m shares.

Other actives were led by Dewan Salaman, up Rs1.50 on 6.176m shares, Lucky Cement, higher Rs1.35 on 5.340m shares, National Bank, up one rupee on 4.037m shares, Engro Chemical, higher Rs2.05 on 3.698m shares and Nishat Mills, easy five paisa on 2.670m shares.

FUTURE CONTRACTS: Divergent trend was seen on this counter where ruling February settlements ended generally recovered, while forward March contracts fell Hub-Power and Engro Chemical, which fell by Rs1.73 and Rs3.40 at Rs24.50 and Rs71, respectively.