KARACHI, Sept 25: The recent downturn was halted on the Karachi Stock Exchange on Thursday as institutional traders covered positions at the lower levels aided by some positive developments on the corporate front. The KSE 100-share index recovered 151 point or 3.67 per cent at 4,271.21.

Fresh heavy short-covering in the PTCL carried the entire market into the plus territory just in one go, although some leading analysts doubt market’s ability to end the bear dominance at least for the near-term.

The market is still in an overbought position and higher carryover charges could trigger a fresh wave of profit-selling if financial traders did not come to its rescue. Retailers again kept to the sidelines apparently fearing a fresh sell-off.

After having shed over 500 points during the last couple of sessions or 10 per cent, the KSE 100-share index recovered a hefty 151.08 points or 3.67 per cent as all the leading base shares tended further higher under the lead of PTCL and Hub-Power. It ended at 4,271.21 points.

The market capitalization also recovered Rs30.286bn at Rs941.528bn as compared to previous Rs911.242bn thanks to smart gains in PTCL and Hub-Power, the two heavily-capitalized shares.

The market talk that final bidding date for the sell-off of controlling shares of the PSO, possibly on Oct 8 or 10 may be announced any time lured leading bulls again in the arena and they made active short-covering in it, pushing its share value sharply higher from the recent lows.

As a result, its share value on the forward counter rose by Rs20.40 from Rs276.10 to Rs296.50 on a large volume of 12m shares. It also came in for strong support on the ready counter.

The sell-off of Habib Bank and another 3.5 per cent shares of the National Bank are also on the cards before the year is out. Bulls taking cue of the near-term positive developments were again back in the market.

“The recently held Dubai seminar on the performance of the Karachi bourse and perceptions of a strong Gulf participation in the coming months also evoked a good bit of speculative buying,” analysts said.

While above market expectations payout of 35 per cent by the PTCL continued to inspire active buying in it and sympathetic covering purchases on the other selected counters, some positive developments on the political front including MMA’s reply to government on the constitutional package after its rejection also aided the underlying sentiment.

“The tension created by the MMA rejection of government constitutional package eased slightly after its reply and analysts think it could lead to further talks on the LFO.”

However, they are divided on the future direction of the market and how it reacts to fresh political developments will be known by the next week.

Parke-Davis rose by another Rs60 ahead of its working results owing to shortage of its floating stock followed by Unilever Pakistan, which posted a gain of Rs19.95. Other good gainers were led by BOC Pakistan, Pakistan Oilfields, Atlas Battery, Ferozsons Lab, after the announcement of a higher cash dividend of 45 per cent plus bonus shares of 25 per cent, Shell Pakistan, Al-Ghazi Tractors, Unilever Pakistan and the PSO, which posted gains ranging from Rs7 to Rs19.70, the highest being in PSO.

Losers were again led by Grays of Cambridge and Wyeth Pakistan, off Rs13.60 and Rs55. They were followed by Jahangir Siddiqui & Co, Gatron Industries, Gadoon Textiles, Atlas Honda and Pakistan Refinery after below market final dividend of 25 per cent, off Rs3.50 to Rs10.

Trading volume fell to 364m shares in the absence of retailers from the previous 420m shares but the advancing shares forced a strong lead over the losing ones at 235 to 87, with 25 shares holding on to the last levels.

PTCL topped the list of most actives, sharply higher by Rs1.65 at Rs39.55 on 87m shares followed by FFC-Jordan Fertilizer up 80 paisa at Rs18.70 on 35m shares, Hub-Power, higher by 40 paisa at Rs38.90 on 33m shares, Fauji Cement, up 75 paisa at Rs11.45 on 32m shares, D.G. Khan Cement, higher by Rs2.65 at Rs39.55 on 21m shares, Pakistan Oilfields, up Rs7 on 12m shares, and National Bank, up Rs1.90 also on 12m shares.

Other actives were led by Dewan Salman, up Rs1.10 on 10m shares, Sui Northern gas, higher Rs1.15 on 9m shares and PIAC, up Rs1.45 on 8m shares.

FORWARD COUNTER: PSO came in for strong support and rose by Rs20.40 at Rs296.50 on 12m shares followed by PTCL, higher by Rs1.65 at Rs39.45 on 8m shares, Hub-Power, up Rs1.35 at Rs39 on 4m shares and FFC-Jordan Fertilizer up 55 paisa at Rs18.55 on 2m shares. MCB and Engro Chemical also rose by Rs3.40 and Rs3.25 at Rs49.90 and Rs85.10 respectively.