KARACHI, May 16: Stocks on Thursday finished with an extended gain as follow-up support remained fairly persistent on selected counters at the lower level despite tension on the borders. The KSE 100-share index recovered another 4.20 points at 1,817.76.

Investors were not deterred by the prevailing tension on the Indo-Pakistan borders amid hopes that the current US diplomatic offensive to ease the situation could lead to normal conditions despite threatening postures of the Indian political leaders.

The fallout of the massacre in Jummu was, however, still there and was well-reflected in the behaviour of the KSE 100-share index, which early after having risen to 1,830 point level reacted to close at 1,817.76, up 4.20 points.

Investors failed to get the due benefit of a big increase, ranging from 4 to 17 per cent in the petroleum prices as a section of analysts still think that the possibility of Indo-Pak conflict could not be ruled out.

But a leading stock analyst at the Moosani Securities think otherwise. “Tension is there but to go to war is another thing,” he says adding “technically speaking, it may not be around at least for the near-term.”

The current diplomatic moves initiated by the US to defuse border tension are expected to ease the situation in due course, some others said.

It was perhaps because of this perception there is no war scare in the market as everyone is playing as he does in normal conditions.

“The market is now in the hands of big ones after the elimination of the smaller ones when the market fell by 100 points,” stock analysts at AHRA claim and “they know well how to behave in typical Pakistani conditions.”

In the changing political news background, it is pretty difficult to say something about the direction of the market but there is no possibility of any big change in the current trading pattern at least for the near-term.

Energy shares finished lower under the lead of PSO and Shell Pakistan on selling followed by fears of fall in sales as the twice deferred price revision owing to presidential referendum was claimed to be on the higher side and could add significantly to production costs.

Fertilizer shares and blue chips on the other counters remained in active demand and allowed the market to finish with an extended gain, dealers said.

Leading gainers were led by Engro Chemical, Ghani Glass, Nestle MilkPak, Lever Brothers and Grays of Cambridge, which posted gains ranging from Rs.1.95 to 21.

Others, which ended with fresh gains ranging from Rs.1.25 to Rs.1.95 are Alico, Hajra Textiles, Ados Pakistan, Packages, Clover Pakistan and Engro Chemicals.

Losers were led by Knoll Pharma, Siemens Pakistan, Honda Atlas, Shafiq Textiles, Sana Industries, off one rupee to 3.95, but the largest decline of Rs.30 was noted in Wyeth Pakistan, which has risen sharply during the last couple of sessions because of shortage of the floating stock.

Plus signs, therefore, maintained a comfortable lead over the minus ones at 148 to 107, with 61 shares holding on to the last levels amid an increased volume of 126m shares.

Hub-Power again led the list of actives, unchanged at Rs.24.10 on 36m shares followed by PTCL, also unchanged at Rs.17.90 on 19m shares, FFC-Jordan Fertilizer, up 15 paisa at Rs.7.35 on 12m shares, Telecard, higher also by the same amount at Rs.13.80 on 11m shares and PSO, lower 55 paisa at Rs.153.35 on 8m shares.

Engro Chemical topped the other actives, higher by Rs.1.95 on 5m shares, National Bank, up 55 paisa also on 5m shares, Dewan Salman, steady by 10 paisa on 3m shares and KESC, easy five paisa on 2m shares.

FUTURE CONTRACTS: Engro Chemical came in for strong speculative support and rose by Rs.1.85 at Rs.62.30 on 0.636m shares, while other price changes were mostly fractional followed by rolling of positions from one counter to the other.