KARACHI, Nov 21: Stocks on Tuesday responded positively to the release of forensic probe report on the last year’s market crash and staged a smart recovery on strong covering purchases aided by its findings that apparently gives a clean sheet to the brokers about the price manipulation.

The market’s spontaneous bullish reaction to the report could be gauged by the fact that the KSE 100-share index finished recovered by 191.89 points at 10,622.55 as compared to 10,430.66 a day earlier as all the leading base shares notably MCB, OGDC, PTCL, National Bank and Pakistan Petroleum finished sharply higher some of them close their upper locks.

The KSE 30-share index also recovered 292.25 points at 13,289.94.

The probe report compiled by the US forensic experts after detailed discussions with the relevant quarters claims “it is hardly likely that influential brokers manipulated the market through the withdrawal of COT funds as they were provided by the banks and mutual funds”.

The report, which is available on SECP website was, however, silent on the issue of in-house badla and wash trade and says “it is the weak internal structure of the capital market that led to the crash of stock market crash in 2005, wiping out $13 billion from the capital”.

Analysts said fears that some of the leading brokers may be involved in the price manipulation were allayed as was reflected by the positive reaction of the market to the probe report.

“The instant market reaction to the report could be deceptive,” they said, adding “no one should jump to hasty conclusions until full details are known”.

Floor brokers said the other contributory aiding factor was that being in a highly oversold position the market needed some morale booster that came in the form of probe report.

However, it is too early to predict about the future direction of the market as developing political situation tells a different story and may take its toll, they added.

Plus signs dominated the list under the lead of Indus Motors and PSO, up by Rs9.90 and Rs13.10, followed by Adamjee Insurance, EFU General, Pakistan Petroleum, Attock Petroleum, Pakistan Oilfields, Jahangir Siddiqui & Co, Arif Habib Securities and Indus Motors, which posted gains ranging from Rs6.90 to Rs9.90.

Losses on the other hand were fractional barring Packages and Millat Tractors were leading among the losers, off Rs5 and Rs8.90. Others were led by Union Bank, Artistic Denim, Clariant Pakistan and Atlas Honda, off Rs2 to Rs2.50.

Trading volume showed a modest rise at 166m shares from the overnight’s 117m shares as gainers held a fair lead over the losers at 167 to 109, with 36 shares holding on to the last levels.

PTCL topped the list of actives, up by Rs2.15 at Rs48.45 on 20m shares followed by OGDC, higher by Rs2.35 at Rs127.60, PICIC, higher by Rs2.80 at Rs74.60 on 12m shares, Bank of Punjab firm by Rs2.90 at Rs103.40 on 11m shares, National Bank, higher by Rs8 at Rs266 also on 11m shares, MCB, up by Rs7.60 at Rs251.80 on 6m shares and Pakistan Petroleum, higher by Rs6.90 at Rs239.90 also on 6m shares.

Other actives were led by Crescent Commercial Bank, off 75 paisa on 6m shares, Faysal Bank, up by Rs1.90 also on 6m shares and Fauji Fertiliser Bin Qasim, unchanged on 6m shares.

FORWARD COUNTER: OGDC was actively traded and led the list on this counter, up by Rs2.10 at Rs127.70 on 10m shares followed by National Bank, higher by Rs7.50 at Rs266.50 on 7m shares and MCB, up by Rs5.65 at Rs251.50 on 5m shares.