KARACHI, June 4: Stocks staged a smart rally on Friday as bulls were back in the market and covered positions at the overnight lower levels on all the counters, wiping out a good part of the overnight massive fall. Index was up by 84 points at 5,363.00.

The KSE 100-share index should have fully recovered the overnight losses but trading was suspended after the morning session as attendance remained thin owing to a complete peaceful strike called by the MMA to protest the assassination of a leading religious scholar last Sunday. On Friday two sessions are held.

It ended the morning session, higher by 83.59 points or 1.58 per cent at 5,362.68 as compared to 5,279.09 a day earlier as all leading index shares, notably OGDC, PTCL and Hub-Power finished partially recovered.

The market capital also recovered Rs21.023bn at Rs1,449.160bn as compared to Rs1,428.137bn a day earlier as heavily-capitalized shares rose from the previous lower levels. The market advance was again led by the cement sector assisted by the blue chips on the energy and other counters as no one was inclined to miss the rising market and took fresh stakes in some of them.

"Reports that some of the leading cement producers including Attock Cement, which has a big stake from a Dubai-based sponsors, D.G. Khan Cement and some others have secured orders from the Dubai importers and shipments are well on their way, did not allow cement shares to fall from their pre-reaction highs," brokers said.

Over the last about one month cement prices in Dubai had risen by 125 per cent affecting the construction activity there. Importers after probing the world markets also contacted the local producers and managed to secure substantial quantities at competitive rates.

And they evoked a lot of sympathetic short-covering in other low-priced shares, notably banking, energy and textile sector. Analysts said Thursday's massive sell-off was partly inspired and partly related to some genuine fears about the tax on capital gains in the new budget but once the rumours was quashed investors were back in the market and covered positions on the blue chip counters.

"From now onward, political instability will remain one of the negative factors but investors are inclined to overlook, they said "the trading in the pre-budget session will be guided by the cross-current of both negative and positive rumours about the fiscal and taxation measures".

Plus signs dominated the list, major gainers being Arif Habib Securities, Fauji Fertilizer, Atlas Honda, National Refinery, Lakson Tobacco and Javed Omer, which recovered Rs4.15 to Rs7.25 from the overnight losses. They were followed by PICIC, Nishat Chunian, Valika Art Fabrics, PSO and Pakistan Tobacco, up by Rs2.25 to Rs3.50.

Losses on the other hand were mostly fractional barring Habib Insurance, Security Papers, Sapphire Textiles, Shahtaj Sugar, Shell Pakistan and Adamjee Insurance, which suffered fall ranging from Rs1.95 to Rs3.55.

Owing to a short session, trading volume fell to 283m shares from the previous 502m shares but the advancing shares managed to force a strong lead over the losers at 212 to 62, with 35 shares holding on to the last levels.

Fauji Cement again topped the list of most actives, up by Rs1.15 at Rs18.85 on 38m shares followed by D.G.Khan Cement, higher by Rs1.95 at Rs61.45 on 34m shares, Hub-Power, up by 60 paisa at Rs32.70 on 22m shares, Maple Leaf Cement, firm by 60 paisa at Rs44 on 21m shares, F.F.Bin Qasim Fertilizer, steady by 85 paisa at Rs20.15 on 20m shares, OGDC, higher by Rs1.30 at Rs66.05 on 19m shares and PTCL, up by 75 paisa at Rs41.75 on 15m shares.

Other actives were led by Lucky Cement, up by Rs1.05 on 12m shares, National Bank, higher by Rs1.60 on 10m shares and Chakwal Cement, firm by 40 paisa also on 10m shares.

FORWARD COUNTER: PTCL led the list of actives, up by 65 paisa at Rs41.90 on 5m shares followed by F.F.Bin Qasim Fertilizer, higher by 70 paisa at Rs20.20 on 4m shares, Hub-Power, up by 55 paisa at Rs32.90 on 3m shares and Bank Alfalah, up by 50 paisa at Rs62 also on 3m shares.