KARACHI, Feb 1: Brisk short-covering in PTCL and OGDC at the lower levels and higher dividend by Fauji Fertiliser and Pakistan Petroleum halted the market's downward drift , reassuring investors that the current run-up is not overdone. The KSE 100-share index recovered 122 points at 6,869.28.

A technical correction in an overbought market notwithstanding, the market has demonstrated in more than one ways, best levels are still far away. "Too many a rupee is still chasing too little a stock that price flare-up could be the logical outcome," analysts said.

The KSE 100-share index recovered a good portion of last two sessions' losses and was up by 121.89 points at 6,869.28 as compared to 6,747.39 a day earlier, reflecting the strength of leading base shares, notably PTCL, which has been under pressure during the last couple of sessions.

Most of the leading shares in banking sector witnessed price flare-up, which forced the KSE to apply circuit breaker to forestall further rise, while energy shares led the market recovery on reports of higher earning and predictions of handsome payouts.

Although reports from Balochistan were not that encouraging, investors followed the lead given by the positive market fundamentals and resumed covering operations in the leading shares at the lower levels.

Analysts were, however, worried over the developing situation on the law and order situation amid reports of rocket attacks and bomb blasts, which in turn could scare general investors away from the share business. But some others hope the situation in Balochistan is expected to ease in the backdrop of a good bit of political manoeuvring and talk of incentive package. "The market has apparently reached the point of no return aided by general support, higher corporate announcements and an attractive bait of privatization," says a leading analyst.

"Only some big event on the political or corporate front could reverse its current stance." Much has changed since the market embarked upon its new journey to surpass its all previous records and the retreat could well mean massive losses for the leading participants, he said.

The major morale-booster was provided by Fauji Fertilizer, which announced a final cash dividend of 30 per cent plus second bonus shares at the rate of 15 per cent, the total stock dividend being 30 per cent as it has already paid off an identical amount to its shareholders.

Pakistan Petroleum came out with an interim dividend of 25 per cent, which boosted its share value from sharply higher from the current lower levels. Plus signs dominated the list, major gainers being National Bank, Javed Omer, Pakistan Oilfields, and Indus Dyeing, up Rs7.10 to Rs10.15.

Other good gainers were led by Askari Bank, MCB, Adamjee Insurance, Babri Cotton, Nishat Chunian, Sapphire Textiles, JWD Sugar, PPL, Pakistan Engineering, HinoPak Motors, Gilltte Pakistan and Shezan Interantional, which posted gains ranging from Rs4.20 to Rs6.95.

Losers were led by Island Textiles, Quetta Textiles, Ferozsons Lab, Treet Corporation, Din Textiles, Packages, Shafiq Textiles and Atlas Honda, off Rs3 to Rs10. Largest fall of Rs31.95 was again noted in AKD Securities.

Trading volume rose to 555m shares from the previous 278m shares as gainers forced a strong lead over the losers at 211 to 137, with 39 shares holding on to the last levels.

PTCL topped the list of active, up Rs1.40 at Rs62.20 on 166m shares followed by OGDC, higher by Rs1.60 at Rs82.60 on 76m shares, National Bank, sharply higher by Rs7.15 at Rs103 on 64m shares, Askari Bank, up Rs6.40 at Rs108.90 on 33m shares and Nishat Mills, off Rs1.90 at Rs93 on 27m shares.

Other actives were led by by DG Khan Cement, higher by Rs3.05 on 27m shares, Bank of Punjab, up Rs3.60 on 20m shares, Lucky Cement, firm by Rs1.20 on 19m shares, MCB, higher by Rs4.20 on 12m shares and Fauji Fertilizer Bin Qasim, steady by 90 paisa on 10m shares.

FORWARD COUNTER: PTCL also led the list of actives on this counter, up Rs1.30 at Rs63.05 on 55m shares, PPL, sharply higher by Rs4.90 at Rs142.20 on 22m shares, OGDC, higher by Rs1.70 at Rs83.90 on 13m shares, National Bank, up Rs7.35 at Rs105.35 on 12m shares and Nishat Mills, off 60 paisa at Rs95.20 on 10m shares. PSO also rose by Rs4.50 at Rs320.