KARACHI, Dec 20: Karachi stocks finished higher on Thursday as the post-Eid holiday session witnessed a good bit of two-way activity but the late advent of institutional support drove bears out of the market. The KSE 100-share index rose by 5.24 points at 1,385.32.

Despite final victory of the bulls, the underlying sentiment remain highly volatile as investors were unsure about the border situation owing to successive threats by the Indian high-ups in the wake of terrorist attack on the Parliament blaming Pakistan’s involvement.

But the advent of the institutional support on the blue chip counters lured general investor back in the market and the consequent robust rally.

However, relative weakness of the energy sector under the lead of oil marketing giants, PSO and Shell Pakistan on the perception of lower annual profits because of successive cut in selling prices of oil products weighed heavily against the sentiment despite credible performance of the fertilizer shares.

The market opened with a loss of 10 points after four days closure on account of Eid holidays on early selling triggered by cross border tension on the line of control in Kashmir and fears of an imminent Indian attack, but the mid-session saw the return of leading institutional traders and reversal of the scale.

“War with India may not be around because of Afghan situation and possible foreign intervention, the fears among the weaker links is there and that could keep the market volatile despite the major thrust of the year-end buying,” says a leading stock broker.

The KSE 100-share index finished with a gain of 5.24 points at 1,385.32 as compared to 1,380.08 on last Saturday,the last session before the eid holidays.

“ The index after technical corrections,is steadily rising to stay firm above the psychological barrier of 1,400 points before the year is out despite some external disruptions”, stock analysts at the W.E.Financials predict adding the “everyone is awaiting the advent of the year-end buying and portfolio adjustments”.

The board meeting of the Fauji Fertiliser, a giant among the listed shares,has evoked good interest in this sector as a whole including the FFC-Jordan Fertilizer, where the production is suspended owing to technical reasons.

“Apart from an expected revenue growth in the entire fertilizer sector because of higher sales, its performance will be largely gauged by the rate of interim dividend by Fauji Fertilizers,” they add.

Anything below 20 per cent or Rs.2 on a 10-rupee share may not work at least for the near-term, although final could be more impressive.

Other blue chips shares including Hub-Power and PTCL came in for strong support but energy shares remained under pressure under the lead of PSO and Shell Pakistan, which suffered sharp decline of Rs.1.65 and 2.45 at Rs.97.60 and 174.50 respectively.

Leading gainers were led by Pakistan Services, Millat Tractors, Essa Cement, Legler Nafees, Crescent Steel, Fauji Fertilizer, Glaxo-Wellcome Pakistan, and Bhanero Textiles, which posted gains ranging from Rs.1.20 to 5.

Losers were led by A.A.Textiles, Nazir Cotton, Ghani Glass, IGI Insurance and ICI Pakistan, which fell by one rupee to Rs.2.

Trading volume rose to 75m shares from the previous 38m shares despite a Eid milan party held in the trading hall as advancing shares held a modest lead over the losers at 64 to 59, with 47 holding on to the last levels.

Hub-Power led the list of most actives, up 20 paisa at Rs.18.20 on 18m shares, followed by PTCL, up 25 paisa after being ex-dividend at Rs.16, Fauji Fertilizer, higher by Rs.1.40 at Rs.42.45 on 6m shares, FFC-Jordan Fertilizer, firm by 55 paisa on 4m shares and Engro Chemical, up 60 paisa at Rs.57.80 also on 4m shares.

Other actives were led by PSO, off Rs.1.65 on 4.210 shares, ICI Pakistan, lower Rs.2.30 on 1.815m shares, Sui Northern, easy 10 paisa on 1.384m shares and Adamjee Insurance, unchanged on 1.066m shares.

LOSERS: Shell Pakistan 2.45, ICI Pakistan 2.30, Ghani Glass, 2, PSO 1.65, A.A.Textiles 1.50.