KARACHI, July 21: Stocks on Wednesday recovered from the recent lows on active short-covering at the lower levels aided by rumours of interim dividend by some of the leading companies.

KSE 100-share index broke the barrier of 5,400 at 5,440.49 up 51.35 points or about one per cent.

Both PTCL and OGDC were in the forefront as the market talk of interim dividend were confined to them, although Bank of Punjab again came in for strong and heading to hit its career-best level of Rs70.

Bulk of support originated from the institutional traders who picked up some of the leading shares, most of them had shed extra weight in the last week's pruning. The KSE 100-share index breached through the barrier of 5,400 at 5,440.49, up 51.35 points as compared to 5,389.14, reflecting the strength of leading base shares. Market capital also recovered Rs13.247bn at Rs1,468.237bn.

Volume figure also soared well above 200m share mark after several lean sessions, up 100 per cent, signalling that the bulls are back in the market and for good reasons too.

During the last couple of sessions, notably with the opening of the Pakistan Petroleum IPO, which drained out massive amounts from the share business, leading shares as well as those having the potential of capital gains have reached an attractive lower levels and only fools could miss that opportunity.

There was a lot of short-covering in OGDC, followed by third interim dividend, the PTCL and the PSO, which generated sympathetic support on the other counters and the consequent bull-run.

The board meeting of the OGDC is due on July 29 and analysts expect pleasant surprise for those who are in its fold. It had already paid two interim dividend at the rate of 10 per cent each.

"I don't think MMA withdrawal in favour of the ARD candidate against Shaukat Aziz could change the election scenario but it certainly point to a strong opposition," says a leading analyst "that will also mean its future unity could create problems for the government."

For the near-term, however, investors are concentrating on the market fundamentals without going into the details of the political developments and that factor could mould the market in a good shape in the weeks to come, he adds.

All the leading low-priced shares came in for active short- covering and finished with smart gains under the lead of energy, fertilizer, cement and banking sectors.

Among the top gainers, International Industries and Lakson Tobacco were prominent, up Rs9 and Rs10. Other good gainers were led by Tri-Pack Films, Atlas Honda, Ferozsons Lab, Glaxo- SKF, Jahangir Siddiqui Bank, EFU Life and Javed Omer, up by Rs4.45 to Rs8.90.

Losses on the other hand were mostly fractional barring Suhail Jute, Agriautos, Gatron Industries, Colgate Pakistan and Treet Corporation, off Rs1.30 to Rs5 but the largest decline of Rs17.85 was recorded in Fateh Textiles.

Trading volume in the ready section rose to 266m shares from the previous 146m shares as gainers forced a strong lead over the losers at 182 to 97 after several lean sessions.

The most active list was topped by Bank of Punjab, up Rs2.70 at Rs68.75 on 63m shares followed by PTCL, higher by 80 paisa at Rs44.55 on 39m shares, OGDC, steady by 35 paisa at Rs66.90 on 31m shares, National Bank, up 70 paisa at Rs72.55 also on 31m shares, Lucky Cement, firm 45 paisa at Rs40.60 on 9m shares, PSO, higher by one rupee at Rs274.00 on 7m shares and MCB, higher by Rs1.15 at Rs53.50 also on 7m shares.

DG Khan Cement leads the list of others, modestly higher by 25 paisa on 8m shares, Nishat Mills, up 40 paisa on 5m shares and Askari Bank, higher Rs1.50 also on 5m shares.

FORWARD COUNTER: Pakistan Petroleum came in for renewed buying and rose by Rs1.20 at Rs114.30 on 14m shares followed by PTCL, higher by 75 paisa at Rs44.50 on 7m shares, OGDC, steady 10 paisa at Rs66.80, National Bank higher by 55 paisa at Rs72.70 on 3m shares and PSO, higher by Rs1.45 at Rs274.70 on 2m shares.