KARACHI, July 31: Stocks on Tuesday shrugged off the prevailing hesitancy and were back on the rails followed by active short-covering in cement and bank shares aided by reports of higher corporate earnings and the market talk of enhanced payouts.

The KSE 100-share posted a fresh sharp rise of 104.79 points at 13,738.87 as compared to 13,634.08 points as leading shares, notably PTCL, National Bank, Bank of Punjab and Askari Bank finished with extended gains. The KSE 30-share index also rose by 130.09 points at 16,618.27.

Although investors were still in two minds about the widely speculated Dubai deal the well-informed among them who know how the future wind would blow were back in the arena.

“Deal or no deal between President Musharraf and Benazir Bhutto on power sharing formula investors seem to have pulled themselves out from the impasse and decided to go along the market fundamentals”, said a stock analyst.

This perception was also reinforced by the market’s sharp rebound despite the fact that there was no change in the political situation, he added.

However, some others said an accord had been reached at the Dubai meeting and conflicting rumours were being spread in an apparent effort to know public reaction.

A spate of cash dividend and bonus shares announced by more than a dozen companies during the last couple of weeks and rumours of higher payouts by those companies whose board meetings were due during the next couple of weeks did not allow investors to keep to the sidelines and they participated actively in the dealings.

“What seems to have encouraged local investors more was reported return of the foreign investors at the lower levels and a judicious blend of both foreign and local buying put the market back on the rails,” said another analyst.

Plus signs dominated the list under the lead of JS & Co and Unilever Pakistan, up by Rs36.55 and Rs100, followed by IGI Insurance, Adamjee Insurance, ICI Pakistan, Gillette Pakistan, KSB Pumps, PSO, New Jubilee Insurance, Packages and Fazal Textiles, which posted gains ranging from Rs6 to Rs14.75.

Prominent losers were led by Lakson Tobacco and Nestle Pakistan, up by Rs19 and Rs20 respectively. JS Global, Honda Atlas, Security Papers, Shezan International, Siemens Pakistan, Indus Motors and Arif Habib Securities followed them and were marked down by Rs6 to Rs13.05.

Trading volume rose to 266m shares from the previous 163m shares as gainers held a strong lead over the losers at 215 to 113, with 42 shares holding on to the last levels.

Lucky Cement led the list of actives, up by 70 paisa at Rs130.20 on 26m shares followed by PTCL, steady by 45 paisa at Rs58.95 on 21m shares, Bank of Punjab, higher by Rs4.60 at Rs107.85 on 19m shares and Arif Habib Securities, higher by Rs3.25 at Rs128.50 on 12m shares.

Askari Bank followed them, up Rs2.50 at Rs97.70 on 10m shares, National Bank, up by Rs1.05 at Rs261 on 7m shares and Bank Alfalah, up by 60 paisa at Rs55.85 also on 7m shares.

Other actives were led by Telecard, up by 80 paisa on 15m shares followed by TRG Pakistan, higher by Re1 on 10m shares and Maple Leaf Cement, up by Rs1.05 on 8m shares.

FORWARD COUNTER: Lucky Cement also led the list of actives, higher by 65 paisa at Rs131.35 on 8m shares followed by Telecard, up by 80 paisa at Rs15.15 on 5m shares and Bank of Punjab, higher by Rs4.25 at Rs108.05 also on 4m shares.