KARACHI, Sept 30: Stocks on Friday were back on the rails on active covering purchases in PTCL and bank shares followed by reports that Etisalat has denied rumours of its back out from the PTCL deal.

A Dubai-based newspaper quoting Etisalat management sources said that the deal with the Privatization Commission was intact and the highest bidders would honour it before the extended deadline of October 28, 2005.

The market well-received the reported denial by Etisalat as was reflected in the KSE 100-share index, which breached through the barrier of 8,200 at 8,225.66 as compared to 8,151.51 a day earlier, up 74.15 points.

According to a Gulf daily quoting official sources said that the management of Etisalat had reiterated its commitment to honour the PTCL deal, but some local analysts still believed that all may not be well with the transaction and there could be many a slip between the cup and the lip before Oct 28, the extended date to complete the payment formalities.

However, the immediate denial of the rumours has a positive impact on the market as investors virtually rushed to cover positions at the overnight lower levels of the pivotals, under the lead of National Bank, MCB, Bank of Punjab, Pakistan Oilfields, Nishat Mills and D.G.Khan Cement.

PTCL, which has received a massive battering after the rumours and extension in payment date and at one has stage fallen below Rs60, recovered a good part of the previous losses on higher volume.

Leading floor brokers said the market seems to be out of the developing crisis caused by conflicting reports about the PTCL deal and could resume its upward drive on the strength of higher dividend.

Moreover, the pruning during the last couple of sessions had also made fairly attractive some of the leading shares for capital gains, notably in the energy and auto sectors and investors may not sit on the sidelines after the end of PTCL episode, they said.

But most analysts consider the PTCL episode a passing phase as the rising market always needs correction and technical pause and that was brought in by the rumours about the PTCL.

The market appears to be in a sound position with the index ruling firm above the 8,000 index level and it demonstrates that there is nothing to worry but investors should have the courage to look to other side of the coin, which is an essential part of stock trading.

National Refinery and Shell Pakistan were leading among the gainers, up by Rs9.10 and Rs12, followed by National Bank, PNSC, Pakistan Refinery, and several others, up by Rs3.5 to Rs7.

Among the prominent losers, Unilever Pakistan fell by Rs49 followed by AKD Securities, off Rs17. Others notable losers included Lakson Tobacco, Arif Habib Securities, Ahmed Hassan Textiles, Atlas Honda, Mitchell’s Farms, Millat Tractors and Noon Pakistan, which suffered fall ranging from Rs3 to Rs9.45.

Trading volume fell to 348m shares from the previous 389m shares as gainers forced a strong lead over the losers at 170 to 120, with 38 shares holding on to the last levels.

D.G.Khan Cement topped the list of most actives, up by Rs3.60 at Rs77.50 on 47m shares followed by PTCL, higher by Rs1.50 at Rs61.50 on 44m shares, National Bank, firm by Rs4.35 at Rs145.45 on 42m shares, Fauji Fertilizer Bin Qasim, steady by 55 paisa at Rs36.75 on 26m shares, Bank of Punjab, up by Rs1.90 at Rs117.90 on 20m shares, Pakistan Oilfields, higher by Rs3.70 at Rs385 on 16m shares and MCB, up by Rs1.90 at Rs126.30 on 16m shares.

Other actives were led by OGDC, firm by 5 paisa on 16m shares, Bank Alfalah, up by five paisa on 10.33m shares and some others, which also rose on modest turnover.

FORWARD COUNTER: PTCL led the market advance on this counter also, up Rs1.75 at Rs62.55 on 20m shares followed by D.G.Khan Cement, higher by Rs3.25 at Rs77.25 on 9m shares, National Bank, higher by Rs3.75 at Rs147.25 on 7m shares and Bank of Punjab, up by Rs1.70 at Rs93.25 also on 7m shares.