KARACHI, June 9: Stocks on Thursday staged a modest recovery followed by active short-covering at the lower levels in most of the base shares after the rumours about the prime minister’s resignation were officially discounted.

PTCL again led the recovery despite conflicting reports about the resumption of strike by its workers and the government’s package of Rs3.5bn, signalling a deal might have been reached between the government and the union. Its share value fell from the early highs of Rs68.05 to Rs67.40 toward the close on late-selling.

The KSE 100-share index after a smart recovery finished well below the day’s peak of 7,371.17 but well above the lowest for the day of 7,263.56 at 7,307.02, up by 43.46 points as compared to 7,283.56 a day earlier.

Leading base shares recovered from the overnight lows on active covering purchases, PTCL, OGDC, PSO, Pakistan Petroleum and National Bank being the major gainers.

In early trade the index gained more than 100 points but failed to sustain the run-up, indicating all was not well with the brokerage and financial houses, reflecting some reservations on their part about the future market direction.

“The post-budget buying euphoria, which was shaping well on the strength of fiscal incentives was, therefore, blunted as investors were still in two minds amid negative political whispering”, analysts said.

“Since the March market crash, sinister moves are around as a section of vested interests or politically-motivated halts even the market’s genuine rise after spreading rumours linked with the ruling elite”, some others said.

Analysts said both leading brokers and financial institutions were not inclined to go beyond a dozen or odd shares, considered safe havens in the bad times, which in turn has limited the scope of a broad-base rally even on technical grounds.

“The future market trend is essentially linked to the sell-off of the PTCL”, they said “while the workers union claims resumption of strike after the reported failure of talks, the government has come out with a incentive package of Rs3.5 billion, indicating that its disinvestment plan is well on the cards”.

Plus signs dominated the list under the lead of Shezan International, Gatron Industries, Javed Omer, Grays of Cambridge and Siemens Pakistan, up by Rs7.20 to Rs28.

Other good gainers included Central Insurance, EFU General, Mehmood Textiles, Mari Gas, Mitchell’s Fruits and some others, up by Rs4.20 to Rs5.40.

Losses on the other hand were fractional barring HinoPak Motors, Suzuki Motors, Pakistan Refinery, Packages, and Berger Paints, which suffered fall ranging from Rs1.20 to Rs3.05.

Trading volume fell to 184m shares from the previous 482m shares as gainers held a fair lead over the losers at 165 to 124, with 32 shares holding on to the last levels.

PTCL again topped the list of actives, up by 90 paisa at Rs67.40 on 84m shares followed by National Bank, higher by Rs1.20 at Rs100 on 16m shares, D.G.Khan Cement, firm by Rs1.60 at Rs57.90 on 14m shares, Pakistan Petroleum, up by Rs1.40 at Rs197.30 on 11m shares, MCB, lower 45 paisa at Rs75.50 on 8m shares, PSO, higher by Rs2.55 at Rs366.05 on 6m shares and OGDC, steady by 40 paisa at Rs103 on 4m shares.

Other actives were led by Nishat Mills, higher by Rs1.90 on 7m shares, Fauji Fertilizer Bin Qasim, higher by Rs1.25 on 6m shares and Pakistan Oilfields, up by 75 paisa on 3m shares.

FORWARD COUNTER: Pakistan Petroleum came in for active support at the lower level and recovered 60 paisa at Rs199.10 after rising to Rs204.25 on 13m shares followed by PTCL, higher by 95 paisa at Rs67.50 on 10m shares and OGDC, off 60 paisa at Rs102.10 on 8m shares.