KARACHI: Share values on Wednesday staged a smart rally on strong covering purchases in the oil and banking sectors, pushing the KSE 100-share index well above the crucial psychological barrier of 9,000 at 9,154.99 points, up 2.42 per cent or 216 points.

‘Easing of political tension on the NRO and prime minister’s statement that the powers of the president would by curtailed and relative calm on the law and order front seemed to have sent a wave of optimism among the investors followed by hectic buying,’ said analyst Ahsan Mehanti commenting on the snap technical rebound in a oversold market.

The strong rally reflected the market’s inherent strength and its future outlook based on the objective news both from the corporate and political fronts, he said.

‘What seems to have encouraged local investors to be back in the arena was reports of active covering purchases made by foreign funds in the oil and banking sectors at the current lower levels,’ said another analyst Hasnain Asghar Ali and added: ‘There are still some irritants, notably on the war on terror front but if there is a relative calm on the political front the current run-up could be sustained in the coming weeks also.’

Although volume figure failed to keep pace with the mounting buying orders as a section of investors stayed on the sidelines anticipating fresh rise in prices, the underlying sentiment reflects a credible change in the investor perceptions, analyst Faisal A Rajabali said, adding: ‘There are more than one reason to stay bullish if all goes well on the law and order front.’

But he said the Client Level Margin (CLM) could be one of the reasons behind the low volume since its introduction on Nov 1, 2009.

Plus signs dominated the list under the lead of Wyeth Pakistan and Unilever Foods, up by Rs55.41 and 45 followed by Bata Pakistan, which also showed a smart recovery of 38.67.

Other blue chips, which were quoted higher by Rs5.82 to Rs11.80 were led by Adamjee Insurance, Attock Refinery, Shell Pakistan, Pakistan Petroleum, Indus Motors, Dawood Hercules, Engro Chemical, Clariant Pakistan, PECO, HinoPak, MCB, and PSO.

Losses, on the other hand, were mostly fractional barring Shahtaj Sugar, Thal Industries, Siemens Pakistan, Pakistan Services, Fazal Textiles, Service Industries and Rafhan Maize, which suffered fall ranging from Rs5.10 to Rs75, largest decline being in Rafhan Maize.

Trading volume was around the overnight level of 131m shares but gainers held a strong lead over the losers at 258 to 126, with 16 shares holding on to the last levels.

The active list was topped for the third session in a row by J S & Co, up by 97 paisa at Rs32.66 on 21m shares followed by Arif Habib Securities, higher by Rs1.76 at 48.64 on 9m shares, Pak PTA, steady by 22 paisa at 6.97 on 7m shares, Azgard Nine (preference), firm by 35 paisa at 10.30 on 6m shares, Adamjee Insurance, higher by Rs5.82 at 122.28 on 5m shares, National Bank, up Rs1.52 at 80.21 on 4m shares, and Hub Power, higher by 92 paisa at 30.02 also on 4m shares.

OGDC followed them, up Rs2.15 at 105.76 on 4m shares, Engro Chemical, higher by Rs5.28 at 166.18 also on 4m shares and Fauji Fertiliser Bin Qasim, firm by 60 paisa at 25.06 on 3m shares.

FUTURE CONTRACTS:

Adamjee Insurance led the list of actives on this counter, up by Rs5.83 at 122.54 on 0.773m shares followed by OGDC, higher by Rs2.16 at 105.77 on 0.308m shares, and MCB, sharply higher by Rs10.62 at 223.02 on 0.154m shares.

PTCL followed them, steady by 46 paisa at 18.71 on 0.141m shares and D G Khan Cement, up 64 paisa at 27.38 on 0.128m shares.

DEFAULTER COS:

Steady conditions prevailed on this counter also in sympathy with the return of the bull market in the ready section under the lead of Amin Spinning, Jubilee Spinning and some others, which posted gains ranging from 63 paisa to one rupee.