KARACHI: Stocks on Wednesday were back on the rails as technical rally manifested itself in a big way in an oversold market but analysts are still unsure about the future direction of the market. The KSE 100-share index recovered about 154 points or two per cent at 8,916.18. ‘Essentially, it is an overdue technical rebound,’ said a leading equity analyst Ahsan Mehanti. ‘I don’t link it to the fall in inflation last month as the commodity prices are still beyond the reach of a common man.’

Pivotal oil and banking shares, notably PSO, Pakistan Oilfields, Pakistan Petroleum, MCB Bank and Habib Bank, which came in for active short-covering at the lower levels could be described as the chief vehicles behind the perceptible change in the investor psychology, he said.

But another leading analyst Hasnain Asghar Ali thinks an active participation of some foreign investors in the oil sector lured others to follow-suit and the consequent turnaround in an enlarged turnover. News from the war on terror was fairly encouraging and prompted even some hesitant buyers to resume normal activity at the current attractively lower levels.

The KSE 100-share index staged a robust recovery of 153.78 points or two per cent at 8,916.18 points, reflecting the sharp rebound staged by the leading base shares under lead of oil sector.

But on the other hand, the KSE 30-share index showed a bigger gain of 2.22 per cent or 204.26 points at 9,397.34 points on strong technical support.

Plus signs dominated the list under the lead of Siemens Pakistan, Nestle Pakistan and Unilever Foods, up by Rs64.64 and 59 followed by blue chips such as Adamjee Insurance, Lakson Tobacco, PSO, Pakistan Oilfields, Pakistan Petroleum, Clariant Pakistan, Bata Pakistan, and Treet Corporation, which were also quoted higher by Rs5.62 to 13.44.

Losses on the other hand were mostly fractional barring Fazal Textiles, Mirpurkhas Sugar, HinoPak, Service Industries, Unilever Pakistan, Shahtaj Sugar, and Exide Pakistan, which suffered fall ranging from Rs3.15 to 10.50.

Trading volume rose to 140.415m shares from the previous 78m shares as gainers forced a strong lead over the losers at 219 to 138, with 22 shares holding on to the last levels.

J.S. & Co led the list of actives, steady by 22 paisa at Rs28.23 on 22m shares followed by Arif Habib Securities, up Rs1.74 at 47.75 on 16m shares, PTCL, firm by 23 paisa at Rs18 on 10m shares, OGDC, lower 34 paisa at 101.74 on 7m shares, Nishat Mills, up Rs2.79 at 59.26 on 5m shares, D.G. Khan Cement, up Rs1.13 at 26.52 also on 5m shares, and Azgard Nine, firm by 26 paisa at Rs20.04 on 4m shares.

Attock Refinery followed them, sharply higher by Rs5.53 at 133.93 on 4m shares, MCB Bank, up Rs4.02 at 213.22 also on 4m shares and Pakistan Oilfields, sharply higher by Rs8.76 at 214.96 also on 4m shares.

FUTURE CONTRACTS:

OGDC led the list of actives on this counter, lower by 43 paisa at Rs101.81 on 0.586m shares, followed by MCB Bank, higher by Rs3.10 at 213 on 0.376m shares, and Engro Chemical, up Rs4.68 at 172.59 on 0.341m shares.

Pakistan Oilfields followed them, sharply higher by Rs8.14 at 215.06 on 0.298m shares and Adamjee Insurance, higher by Rs5.62 at Rs118.17 on 0.199m shares.

DEFAULTER COS:

 Mixed trend was witnessed on this counter amid alternate bouts of buying and selling under the lead of Unity Modaraba, easy by two paisa at Rs0.09 on 72,101 shares followed by Invest Modaraba, lower 44 paisa at Rs0.25 on 14,502m shares and Shakarganj Foods, up 10 paisa at 2.04 on 10,000 shares.

Others were fractionally traded Barring Japan Power, which was quoted higher by three paisa at Rs1.70 on 68,754 shares, Invest Bank, up five paisa at 1.25 on 6,128 shares.