KARACHI, June 12: Stocks on Tuesday staged a broad recovery initiated by the cement sector as investors covered positions on selected counters where the potential of capital appreciation was almost sure, analysts said.

The KSE 100-share index finished with a gain of 57.89 points at 13,326.17 but well below the session’s high of 13,390.34 points, while its junior partner, the 30-share index, also rose by 60.29 points at 16,830.54 as leading base shares rose further higher.

But the buying euphoria associated with the pro-investor budget or the post-budget investor enthusiasm was still to manifest itself in a bigger way, analysts said.

“Owing to sustained pre-budget rise, the market is in an overbought position and once it meets its technical demands, the post-budget pent-up demand is expected to take the floor,” analyst Ashraf Zakaria predicts.

The pre-bid meeting on the sell-off of controlling shares of Pakistan State Oil (PSO) on June 20 could give a needed push to the hereto reluctant investors, he added.

The investors also showed interest in the opening of subscription for the shares of newly floated Sitara Peroxide on June 13 and 14. It was provisionally being quoted around Rs31.

Since the announcement of pre-bid meeting, its share value has risen by about 12 per cent to well over Rs400 per share of Rs10 on market talk that its bid price could be around $11 per share.

Leading cement shares, notably D. G. Khan and Lucky Cement again led the market advance followed by some low-priced ones including Fauji Fertiliser Bin Qasim. Barring National Bank, which suffered fresh fall, bank shares ignored the CBR decision to impose capital gain tax on its income from January next year.

Analyst Ahsan Mehanti said cement shares along with oil giants could take the market to the widely speculated index level of 14,000 point provided there is a relative calm on the political front.

Among the leading gainers, Rafhan Maize maintained its sustained rise to new peak level and was quoted higher by Rs114 at Rs2,394, while Unilever Pakistan rose by Rs19. Other good gainers were led by Arif Habib Ltd, Javed Omer, EFU General and EFU Life, Sapphire Fibre, Millat Tractors, Pak-Suzuki, Al-Ghazi Tractors, Treet Corporation, Pakistan Services, Thal Jute and IGI Insurance, which posted gains ranging from Rs7 to Rs18.

Grays of Cambridge and Nestle Pakistan were prominent among the gainers, off Rs11.50 and Rs49 respectively followed by United Bank, ICI Pakistan, Clariant Pakistan, Noon Pakistan, Engro Chemical, Pakistan Engineering and Fazal Textiles, off by Rs2.50 to Rs8.

Trading volume rose to 337m shares from the previous 291m shares as gainers held a strong lead over the losers at 223 to 135, with 43 shares holding on to the last levels.

D.G. Khan Cement again topped the list of most actives, up by Rs1.80 at Rs120 on 52m shares followed by Lucky Cement, higher by Rs5.70 at Rs121.90 on 42m shares, Fauji Cement, steady by 40 paisa at Rs19.60 on 16m shares, Bank Alfalah, lower by 10 paisa at Rs56.15 on 15m shares, Bank of Punjab, higher by 95 paisa at Rs112.60 on 12m shares, Arif Habib Securities, higher by Rs5.45 at Rs113.85 on 8m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, easy 15 paisa on 9m shares, Pakistan Cement, up by 45 paisa also on 9m shares and JS Bank, higher 40 paisa on 8m shares.

FORWARD COUNTER: D.G. Khan again led the list of actives on this counter, up by Rs2.05 at Rs120.30 on 15m shares, followed by Lucky Cement, higher by Rs5.20 at Rs122.15 on 13m shares and MCB, up by Rs4.20 at Rs366 on 5m shares.