KARACHI, Nov 20: Stocks on Thursday showed firm trend followed by active short-covering in most of the leading shares at the lower levels but there was no matching selling from any quarter as was reflected by a modest volume figure.

Although the KSE 100-share index broke the barrier of 3,800 point and stood firm well above 3,900 figure, the rally appears to be too feeble to pull the market out of the prevailing sluggishness, brokers said.

Opinions are divided over the market direction prior to the Eid holidays, but most agree that its future direction will be largely dependent on the course of political events in the backdrop of plans of anti-government movement.

However, the notable feature was that the KSE 100-share index managed to breach through the psychological barrier of 3,900 points, which the analysts predict could lead its journey to the consensus chart point of 4,000 or beyond it if all goes well on the political front.

The KSE 100-share index after moving either-way finally managed to finish with a fresh sharp rise of 31.62 points at 3,920.02 as compared to 3,888.40 a day earlier, reflecting the relative strength of some leading base shares notably PSO, which is again in the news on the perception of its early sell-off.

There was no immediate analysts comment on the likely impact of four paisa cut in the power rates to domestic consumers on the energy shares, notably KESC, but some of them fear negative reaction of the donor agencies on the successive tariff cuts. Industrial consumers have already enjoy a cut of 11 paisa per unit, a concession given a couple of months back.

The falling volume figures, however, tell that the current sluggishness will continue prior to the Eid holidays from next Tuesday and how the market will behave in the post-Eid session is not clear.

“The MMA ultimatum to the government to bring the agreed draft constitutional bill on the LFO to the parliament by Dec 18, or face agitation could mean anything to the market,” analysts said. “The current decline in buying interest may be because of one of these apprehensions.”

The perception that the MMA is capable of launching a massive anti-government movement worries investors, leading among them are already basing their future investment on the future law and order situation, they said.

Price changes were mostly fractional and reflected an aggressive buying from any quarter, including the leading financial institutions, which generally provide the much-needed lead to the general investors.

Floor brokers said settlement of carryover business after the Eid holidays seemed to have generated a good bit of short-covering on selected counters, including some leading indexed shares, which in turn, allowed them to finish higher.

Plus signs again dominated list, leading gainers among them being Noon Sugar, Clariant Pakistan, Cherat Papers, Lakson Tobacco and Javed Omer, which posted gains ranging from Rs3 to Rs12.20. Other good gainers included EFU General, Gatron Industries, Bosicor Pakistan and BOC Pakistan, which rose by Rs2 to Rs3.75.

Losers were led by JDW Sugar, Glaxo-SKF, Packages, Unilever Pakistan, Dreamworld, Nestle MilkPak, and Millat Tractors, off by Rs1.90 to Rs6.50.

Trading volume rose to 107m shares from the overnight 63m shares as the advancing shares maintained a strong lead over the losing ones at 153 to 83, with 57 shares holding on to the last levels.

PIAC topped the list of actives, up Rs1.30 at Rs17.35 on 11m shares followed by Bosicor Pakistan, higher by 80 paisa at Rs28.70 also on 11m shares, Hub-Power, up 65 paisa at Rs35.55 on 9m shares, D.G.Khan Cement, firm by 35 paisa at Rs39.60 on 8m shares and PSO, up Rs1.55 at Rs262.80 also on 8m shares.

Other actives were led by TRG Pakistan, higher by Rs1.50 on 6m shares, Dewan Motors, up 80 paisa also on 6m shares, PTCL, higher 40 paisa on 6m shares, Sui Northern Gas, off Rs1.05 on 5m shares and PICT, higher by Rs1.50 on 4m shares.

FORWARD COUNTER: OGDCL was again actively traded at the last level of Rs40.50 on 20m shares. At one stage it rose to the day’s peak of Rs41.40, while other shares were neglected.