KARACHI, Aug 6: Stocks on Wednesday staged a smart recovery as investors covered positions at the overnight lows aided by reports of interim higher corporate earnings and peace signal from the political front amid market talk of a possible MMA-government deal on the LFO.

Both the KSE 100-share index and the total market capitalization attained their new career-best levels at 4,092.21 and Rs911.901 billion, up 82 points and Rs18.483 billion, respectively, reflecting the strength of leading base shares.

What seems to have given credence to the rumours about the possible deal was the sudden resignation of the Balochistan governor, what the analysts presume, may lead to meeting of the MMA demand for the top slot.

Almost all the blue chips participated in the run-up, not allowing bears a breathing space to push prices further lower despite a good bit of early selling, brokers said.

The KSE 100-share index, which did not look back after opening on a higher note, ended near the day’s best bid at 4,092.21 as compared to 4,010.34, up 81.87 points or 2.10 per cent.

There may not be a big jump to its newly set target of 4,500 points, the onward drive of the index continues in the coming sessions on the strength of higher corporate announcements and positive developments on the political front.

“There may still be many slips between the lip and the cup, the market strongly feels that a political deal between the MMA and the government is imminent,” analysts said.

And that could well mean an added boost to stock trading along with higher dividend news as the possible division in the terribly strong opposition will make sailing on the political front a bid smooth, they said.

ICI Pakistan remained in strong demand for the second session in a row on strong interim earning, adding significantly to its rate of growth.

Both the interim sales and after tax profit have almost doubled at Rs9.830bn as compared to last year’s comparable figure of Rs5.566bn and at Rs419m from the previous Rs227m. However, the board did not declare interim dividend but intends to give final dividend bases on the higher earnings.

However, instances of profit-selling on some of the overvalued counters were not lacking as some of the retailers and investors “chose to turn their profit margins into hard cash,” says a leading stock analyst.

Energy and auto shares led the market advance followed by cement, fertilizer, telecom and leading shares on other counters, including ICP mutual funds and leading textile shares.

Plus signs were strewn all over the list, leading gainers being Atlas Battery, Atlas Honda, Javed Omer, Pak-Suzuki Motors, Attock Refinery and Unilever Pakistan, which posted gains ranging from Rs8.50 to Rs23.50. PSO, Nestle Milkpak, Pakistan Oilfields and Al-Ghazi Tractors followed them, up Rs5 to Rs10, and there was a long list of other

good gainers also.

Losses on the other hand were mostly fractional barring Jahangir Siddiqui Bank, Sapphire Textiles, Ahmed Hassan Textiles, Exide Pakistan, EFU General and Island Textiles, off Rs2 to Rs7.

Trading volume soared to 595m shares from the previous 477m shares as the advancing shares forced a strong lead over the losing ones at 257 to 142, with 53 shares holding on to the last levels, out of 452 actives.

Hub-Power again led the list of actives, up 90 paisa at Rs41.95 on 87m shares followed by Fauji Cement, higher by Rs1.50 at Rs9.40 on 46m shares, ICI Pakistan, up Rs3.85 at Rs73.40 on 42m shares, D.G. Khan Cement, higher by Rs1.70 at Rs39.35 on 37m shares and PTCL, up 55 paisa at Rs33.60 on 36m shares.

Other actives were led by Sui Northern Gas, higher by Rs1.95 on 35m shares, PSO, sharply higher by Rs5.65 on 34m shares, Japan Power, firm by 40 paisa on 32m shares, Dewan Salman, up 90 paisa on 26m shares and FFC-Jordan Fertilizer, higher 50 paisa on 24m shares.

FORWARD COUNTER: PSO again came in for strong support and ended higher by Rs4.70 at Rs313.20 on 11m shares, followed by Sui Northern and ICI Pakistan, up Rs1.55 and Rs3.55 at Rs38.80 and Rs73.65 on 4m and 8m shares, respectively, and Hub-Power, higher by 45 paisa at Rs42.05 on 9m shares.