KARACHI, July 21: Stocks staged a smart recovery on Monday on active short-covering at the lower levels in the leading bank and oil shares ahead of the visit of the State Bank governor to the KSE later in the evening aided by some positive leaks about the agenda of discussions, notably on the key issue of interest rates.

After losing 180 points in early trading, the KSE 100-share index ended with a gain of 139.52 points at 10,374.30 against Friday’s closing of 10,234.78.

The 17-18 per cent hike in petroleum prices prompted a lot of selling when trading started on the perception that it would significantly increase the cost of production and add problems on the export front.

According to market sources, the SBP governor will have detailed discussions on the proposed market support fund of Rs25 billion, weakness of the rupee and other liquidity problems being faced by the brokerage houses.

The other supporting factor and the morale booster for the shaky and massively battered investors was the proposed visit of the finance minister to the KSE on Tuesday. The minister would announce some steps to pull the market from the crisis of confidence.

Apart from some details about the future privatisation plans, the minister is expected to announce individual contribution to the market support fund by banks and other financial institutions, the market sources said.

Bulk of the support originated from the financial institutions as the brokers and general investors were still in two minds about market future direction and played safe, analyst Ahsan Mehanti said.

Hasnain Asghar Ali, stock analyst, said although all the leading banks including National Bank, United Bank, Bank Alfalah posted gains, but the weakness of the MCB Bank reflected that unloading by the foreign fund continued unabated. It ended with an extended fall of Rs11.65 at Rs221.43.

Analyst Ashraf Zakaria said the future direction of the market would largely depend on central bank governor’s post-visit mood of investors whether or not to stay in the market.

Shell Pakistan and PSO, chief beneficiaries of the oil price hike led the market advance, gaining Rs19.30 and 19.10, respectively, followed by National Bank, Pakistan Refinery, Attock Refinery, Mari Gas, OGDC, Engro Chemical, Pakistan Petroleum, which posted gains ranging from Rs5 to Rs13.55.

Top losers were led by Unilever Pakistan and JS & Co, off Rs110 and Rs18.72 respectively. They were followed by Arif Habib Ltd, Adamjee Insurance, MCB Bank, EFU Life, Atlas Honda, Dawood Hercules, Clariant Pakistan, Gillette Pakistan, Clover Pakistan and National Foods, off by Rs8.65 to Rs15.90.

Trading volume was, however, light and lacked aggressiveness associated with bull-market and totalled 94m shares as compared to 185m shares at the last weekend. Losers held a modest lead over the gainers at 129 to 115, with 21 shares holding on to the last levels.

Arif Habib Securities led the list of actives, sharply higher by Rs6.20 at Rs130.20 on 5m shares, followed by Engro Chemicals, higher by Rs6.05 at Rs217.05 also on 5m shares, National Bank, up by Rs5.49 at Rs115.48 on 4m shares, OGDC, higher by Rs5.41 at Rs113.71 on 3m shares, United Bank, firm by Rs3.27 at Rs68.67 also on 3m shares and Bank Alfalah, higher by Rs1.73 at Rs36.43 on 3m shares.

Other actives were led by NIB Bank, steady by 44 paisa at Rs9.48 on 6m shares, D.G. Khan Cement, up by Rs2.43 at Rs51.03 on 5m shares and Lucky Cement, higher by Rs3.77 at Rs79.27 on 4m shares.

FORWARD COUNTER: Azgard Nine led the list of actives, easy by Rs1.66 at Rs48.24 on 3m shares, Engro Chemical higher by Rs5.07 at Rs216.75 on 1m shares and United Bank, up by Rs3.28 at Rs68.89 on 1m shares.

D.G. Khan Cement followed them, higher by Rs3.42 at Rs51.18 on 0.914m shares and Arif Habib Securities, higher by Rs6.22 at Rs130.62 on 0.817m shares.

DEFAULTER COMPANIES: Zeal Pak Cement again came in for active support and rose by 11 paisa at Rs1.78 on 1.706m shares, followed by Norrie Textiles, steady by five paisa at Rs1.82 on 0.618m shares and Unity Modaraba, unchanged at 80 paisa on 0.292m shares.