KARACHI, March 28: The recent downward drift was halted on the stock market on Thursday as bulls made active short-covering at the lower levels driving bears out of the arena.

“It was a judicious blend of both individual and institutional buying at the lower levels, which put the market back on the rails,” says a leading member of the KSE, adding “the technical correction was overdone paving the way for a rebound.”

The KSE 100-share index, which has earlier fallen to as low as 1,817 staged a smart rally on the strength of leading base shares, notably PTCL and Hub-Power, up 23.74 point or 1.30 per cent at 1,852.19, sending signals that the journey to breached level of 1,900 has just begun.

Adamjee Insurance was again in the news after its management has filed a suit against MCB chairman Mian Mohammad Mansha, who has cornered 40 per cent floating stock of the company through direct and indirect holding to acquire the control of one of the leading insurance companies of Pakistan.

Its management claim Mansha has violated the law of hostile-takeover spending Rs1.25 billion from the depositors money and he may be debarred from seeking say in the company affairs through its directors likely to be appointed on its board by virtue of the share holding.

Its share has declined sharply over the last couple of sessions owing to unloadings by the weak-holders and jobbers.

Last year, another Lahore-based group also tried to buy its floating stock and its price has risen to Rs70, but the attempted takeover bid failed.

Both leading investors and institutional traders participated in the market’s grand technical rebound amid predictions that the current lower levels ensure capital appreciation in a shortest possible time, brokers said.

“However, it was a great fight between the bulls and the bears as the latter have set the target of index level of below 1,800, which incidentally did not suit to the former,” stock analysts at the W.E. Financials said.

But as most of the basic fundamentals point to a sustained bull-run to the index level of 2,000, bears were overawed by the relative strength of their counterpart and their enormous resource base, they added.

Stock analysts at the Ali Husein Rajabali Securities say the leading bulls seem to have set the limits for the index to move, the highest and the lowest level being 1,900 and 1,625, respectively, before hitting the coveted level of 2,000.

“And in between any thing could happen despite the fact it is now well known a fact that the market has left far behind the lean period after the end of Afghan war and a perceptible change in the economic outlook,” stock analysts at the Moosani Securities predict.

Prominent gainers were led by Mehmood Textiles, Pakistan Oilfields, Shell Pakistan, PSO and ICI Pakistan, which rose by Rs2 to Rs3.70, followed by Crescent Star Insurance, Rupali Polyester, Engro Chemical and several others which rose by Rs1.20 to Rs1.50.

Losses on the other hand were mostly fractional barring Adamjee Insurance, Al-Jadeed Textiles, Crescent Steel, Dawood Hercules, Shafiq Textiles and Attock Refinery, which fell by Rs1.20 to Rs2.95. The biggest fall was, however, recorded in Wyeth Pakistan and Fateh Textiles, off Rs10 and Rs29.85.

It was perhaps in this background that advancing shares forced a strong lead over the losing ones at 152 to 87, with 44 remaining unchanged at the last levels. Turnover figure showed modest rise at 160 million shares from the previous 152 million shares.

Hub-Power was again actively traded, up 45 paisa at Rs24.95 on 43m shares followed by PTCL, higher 20 paisa at Rs19.25 on 26m shares, ICI Pakistan, sharply higher by Rs3.70 at Rs58.00 on 14m shares, PSO, higher by Rs3.25 at Rs158.50 on 13m shares and Pakistan PTA, up 60 paisa at Rs7.40 on 12m shares.

Other actives were led by National Bank, up 85 paisa on 9m shares, Dewan Salman, higher Rs1.30 also on 9m shares, Sui Northern, firm by 30 paisa on 5m shares, FFC-Jordan Fertiliser, steady by 15 paisa on 4m shares and KESC, up 20 paisa after the reports that EoIs have been invited for its sell-off, on 4m shares.

FUTURE CONTRACTS: The notable feature was that trading also commenced in the April settlements side by side the maturing March contracts. All the shares followed the lead of their counterparts in the ready section and mostly rose under the lead of Dewan Salman, PSO and ICI Pakistan, up Rs1.30 and Rs3.95 on large volumes.