There could be ‘inspired flutters’ here and there but hope of a stable market in near-future appears to be elusive at this stage as investors may think twice before making any fresh commitment.

Stocks last week were briefly back on the rails aided by strong short-covering at the lower levels in the leading oil shares after the contradiction of counter coup rumours, signaling that the existing set up was well in place to ensure continuity of the financial policies. But the absence of foreign investors and leading institutional traders weighed heavily against the underlying sentiment and everyone awaited the return of sanity on the political front.

The future share business outlook appeared to be a bit bleak in the backdrop of US pressure on President Musharraf to doff uniform and hold election in time. In the developing situation investors mainly foreigners may not enter into fresh commitments even at the lowest levels, analysts said.

Benazir Bhutto’s threat to launch agitation against President Musharraf and a long march from Lahore to Islamabad on Nov 12 also was a depressant, which, analysts said, could lead to violence and law and order situation in the coming weeks.

The KSE 100-share index opened sharply lower, what the dealers called an extension of the previous sell-off, and at one stage it fell to the sessions’ low of 13,075.5 points. But late short-covering in most of low-priced base shares pushed it up to finish well above the week’s lows and highs at 13,188 and 13,500. The net fall over the week was of the order of 491.17 points at 13,428.

The total market capital fell by Rs146 billion at Rs4,096 compared to Rs4,242 a week earlier. The active short-covering in leading base shares, including National Bank, Pakistan Petroleum, OGDC, Attock Refinery, and Engro Chemical was the chief supporting factor behind the index’s recovery.

“Political uncertainty is still there but what seems to have aided the recovery was the perception of continuity of existing financial and economic policies as the previous set up is in command”, said a leading analyst. However, foreign investors stayed away and might not resume fresh coverings until sanity returns, he added.

But some others said the rally appears to be ‘inspired’ as bulk of the support remained confined to most of the safe havens and investors were not inclined to go beyond them at least for the near-term. “It is a very unusual situation, particularly for a stock market, which essentially is not cherished by the investors”, said another analyst. “The “next couple of sessions will watch the direction of the wind and wait for the dust to settle down on the political front”.

Nestle Pakistan and Siemens Pakistan led the market advance, but did not signal the return of foreign buyers, followed by Fazal Textiles, Thal Jute, Pakistan Resource Group, Attock Refinery, Attock Petroleum, Pakistan Oilfields, Pakistan Petroleum, Indus Motors, Pak-Suzuki Motors, BOC Pakistan, Pakistan Engineering, PSO and Colgate Pakistan.

Adamjee Insurance and Lakson Tobacco were leading among the losers. Other losers included JS Global, JS & Co, New Jubilee Insurance, KSB Pumps, Dawood Hercules, Mitchell’s Fruits Farms, Shezan Internationl and MCB.

FORWARD COUNTER: Leading shares on the cleared list also followed the lead of their counterparts in the ready section and fell under the led of Pakistan Petroleum, Pakistan Oilfields, OGDC, MCB, National Bank, Lucky Cement and some others.—Muhammad Aslam.