KARACHI, Oct 19: Stocks on Tuesday recovered from the previous lows on active short-covering in most of the blue chips under the lead of energy shares, notably OGDCL, PPL and PSO. The KSE 100-share was up 86 points at 5,467.06, and added about Rs20bn to the market capital at Rs1,542bn.

There was no trace of the last two sessions' sell-off when the trading resumed and the market was back on the rails after having passed through a technical correction as investors covered positions at the lower levels on the blue chip counters. There was an avalanche of buystops at the lower levels as no one among the leading investors was inclined to miss the rising market.

The KSE 100-share index wiped out a good part of the previous losses and recovered to finish higher by 86.34 points at 5,467.06 as compared to 5,380.72 a day earlier.

"It was essentially an energy-share led rally, which had received massive battering during the last two sessions followed by reports of below market expectations first quarter earnings by Pakistan Oilfields," says a leading broker.

But punters and speculative investors were not that fool to have them at the lower prices and that caused the market to rebound with a bang taking in its fold other blue chips.

OGDCL, PPL and PSO together have a weightage of about 40 per cent in the index, and the current recovery largely owes to their performance, he said.

The market trend is now being guided by earning reports of some major sectors, including energy, cement and banks, as investors will try to phase out their future investment in the share business on the basis of maiden earnings, brokers said.

News from the energy sector was not that encouraging after one of its leading members Pakistan Oilfields reported an eight per cent fall in its profit for the first quarter.

What seems to have triggered sellstops in it dragging its share value lower by Rs6.70, which pushed its EPs to only Rs5.02 against the market expectation of around Rs8.73, analysts said. Other leading energy shares, including OGDCL, PPL, PSO and Shell Pakistan followed it on the perception that their quarterly earnings may also be in line with it, they added.

But the shakeout appears to be psychological rather than real as all are capable of springing pleasant surprises during the next three quarters on the strength of their selling network and a near-protected market, some others said.

Prominent gainers were led by PSO, Millat Tractors, Al-Ghazi Tractors, Pakistan Services, Ferozsons Lab, Lakson Tobacco, Shell Pakistan, Merit Packaging, and Aventis, which posted gains ranging from Rs5.40 to Rs11.

Losers were led by Pakistan Refinery, Dewan Mushtaq Textiles, Pakistan Engineering, Pakistan Cables, Atlas Honda, EFU Life Assurance, Unilever Pakistan, and Wyeth Pakistan, off Rs2.75 to Rs10.

Trading volume further rose to 215m shares from the previous 148m shares as gainers held a fair lead over losers at 153 to 137, with 31 shares holding on to the last levels.

OGDCL topped the list of actives, up Rs1.85 on 52m shares followed by OGDCL October settlement, higher by Rs2.85 at Rs67.10 on 24m shares, PPL, up Rs2 at Rs122.80 on 16m shares, Nishat Mills, up 60 paisa at Rs52.60 on 14m shares, Fuaji Fertilizer Bin Qasim, higher by 45 paisa at Rs20.70 on 13m shares, ICI Pakistan, higher by Rs2.65 at Rs90.45 also o n 13m shares and PTCL, up 30 paisa at Rs40.70 on 12m shares.

Other actives were led by PSO, higher by Rs5.90 on 12m shares, PICIC Growth Fund, steady by 50 paisa on 9m shares, National Bank, up 75 paisa on 8m shares, Bank of Punjab, higher Rs1.25 on 7m shares, Maple Leaf Cement, off Rs1.45 on 7m shares, and D.G. Khan Cement, firm by 30 paisa also on 7m shares.

FORWARD COUNTER: OGDCL came in for active short-covering at the lower rates and was quoted higher by Rs1.85 at Rs67.10 on 24m shares followed by PPL, higher by Rs2 at Rs122.80 on 16m shares and PTCL, firm by 50 paisa at Rs40.70 on 12m shares.