KARACHI, Feb 4: Stocks on Tuesday resisted fresh declines and ended partially recovered under the lead of oil giants and blue chips on the other counters followed by active short-covering at the lower levels. The KSE index recovered 5.47 points at 2,476.96.

But the snap retreat from the day’s best levels reflects that bulls are still in two minds about the future share business outlook and allowed bears a free hand to halt the market’s overdue technical rebound.

The future market trend is evenly balanced, says a leading analysts. “But much will depend how the financial institutions behave during the coming trading sessions prior to Eid holidays.”

After having breached through the psychological barrier of 2,500 points at one stage, the KSE 100-share index finished with a marginal rise of 5.47 points at 2,476.96, indicating that the extended bear-run was overdone.

The mid-session saw the index up 55 points at 2,517 on early flurry of institutional buying but bears re-entered the rings toward the close and took profit at the early higher levels. Wednesday’s closure on account of solidarity day to support the Kashmiris struggle for self rule also triggered selling from some quarters.

The early run-up was largely supported by heavy short-covering in the energy sector at the lower levels followed by other blue chip counters, enabling the market to pull itself from the protracted bearish spell.

The board meeting of Hub-Power on Feb 6 to review the interim report also generated a good bit of fresh buying in its share at the prevailing attractively lower levels and enabled the early broad market rally.

“Interim dividend from the Hub-Power management may not be possible before its March London meeting and lenders approval,” analysts said adding “but in the intervening period it could resume its upward drive on speculative support.”

The general perception is that the market has already passed through the needed technical correction and could resume its upward drive on the strength of some positive basic factors.

But some others predict the possibility of return of mid-January boom like conditions appears remote in the backdrop of Iraq situation and the regional tensions.

“The market has already hit its best level on the strength of upcoming dividend announcements and now it will behave properly as sanity has been restored to it by some negative forces.”

Most of the gains were modest barring Javed Omer Vohra and Shell Pakistan, which rose by Rs6.95 and Rs2 respectively, followed by Al-Mal Securities, EFU Life, Gatron Industries, Pakistan Oilfields, PSO, BOC Pakistan, Ghani Glass and Tri-Pack Films, up one rupee to Rs1.45.

Losers were led by Unilever Pakistan, Pakistan Refinery, Attock Refinery, National Refinery, Al-Ghazi tractors, Honda Atlas Cars, Pak-Suzuki Motors, Siemens Pakistan, Aventis Pharma after the passing over of dividend, ICI Pakistan, Bata Pakistan and Dawood Hercules, off Rs1.45 to Rs11.

Trading volume showed a modest rise at 224m shares from the previous 179m shares as gainers forced comfortable lead over the losers at 139 to 105, with 44 shares holding on to the last levels.

Hub-Power again led the list of actives, lower five paisa at Rs34.60 on 63m shares, PTCL, up 25 paisa at Rs21.90 on 34m shares, FFC-Jordan Fertilizer, higher 35 paisa at Rs10.40 on 31m shares, PSO, up Rs1.25 at Rs183.95 on 24m shares, Sui Northern Gas, easy 10 paisa at Rs21.20 on 13m shares, MCB, lower five paisa at Rs34.80 on 9m shares and National Bank, up 60 paisa at Rs25 on 6m shares.

Other actives were led by Engro Chemical up 55 paisa on 6m shares, Pak PTA, firm by 10 paisa on 5m shares and ICI Pakistan, off Rs1.45 also on 5m shares.

FORWARD COUNTER: Speculative issues on the forward counter showed mixed trend but barring Hub-Power, which fell by 10 paisa at Rs34.75 on 14m shares, all other actives finished modestly higher under the lead of PSO and PTCL, up 25 and 20 paisa at Rs184.50 and Rs22 on 9m and 7m shares respectively.