KARACHI, Aug 19: Stocks on Friday recovered from the recent lows on heavy buying in the leading base shares triggered by reports that a scheduled meeting between the bourse bosses and the SECP chairman on the COT and financing issues held here (Aug 19) would end the current protracted standoff on both the issues.

What seems to have enthused investors was the reports that most of the demands of the bourses on the issues may be met in the meeting, hence the return of a bull market. The KSE 100-share index recovered by 212.70 points or three per cent at 7,311.92, crossing three consecutive barriers of 7,100, 7,200 and 7,300 as leading base shares came in for strong support at the current lower levels.

The market capital also recouped Rs54.811bn at Rs2,090.638bn as compared to previous Rs2,035.827bn as heavily-capitalized oil shares recovered from the recent lows.

“The market has demonstrated in more than one ways that the protracted bearish spell is on its way out thanks to positive news on the COT front”, analysts said adding “it also reflects how positive news boosts trading”.

The perception that the SECP has agreed to introduce Continuous Fund System (CFS) to replace badla and amend future rules to improve the liquidity position. The CFS is a modified form of badla financing, which will be available throughout the day, while the badla financing is valid after the close of the market.

The reports that future contracts were expected to be extended to 60, 90 or 120 days instead of the existing 30 days, which means a considerable improvement in the money supply, triggered buystops by the leading investors.

Indications were that the SECP would give a positive nod to the above formula to end the current sluggishness on the market and to resume normal trading by the next week.

“The market is in a highly oversold position and needs a slight push to recover, which came in the form of positive news on COT ahead of the high-level meeting”, brokers said.

The general perception is that the market will respond to it basic fundamentals after its current irritants are removed and the strong weekend rally indicates a good beginning has already been made.

Oil shares led the market advance under the lead of OGDC, Pakistan Oilfields, Pakistan Petroleum, PSO and blue chips on the other counters, notably PSO, National Bank, Bank of Punjab and many others, which scored sharp gains on strong short-covering.

Leading gainers were led by Thal Jute, Dawood Hercules, Colgate Pakistan, after the announcement of cash dividend of 125 per cent, Arif Habib Securities, Pakistan Petroleum, PSO, Shell Pakistan, Siemens Pakistan, Pakistan Oilfields and Unilever Pakistan, which posted gains ranging from Rs5.20 to Rs29. There were many other good gainers also.

Losers were led by Ferozsons Lab and Wyeth Pakistan, off Rs9.75 and Rs34.95 followed by Millat Tractors, Pakistan Cables and Javed Omer, which ended lower by Rs4 to Rs4.55.

Trading volume rose to 194m shares as gainers forced a strong lead over the losers at 195 to 674 with 22 shares holding on to the last levels.

The most active list was topped by PTCL, higher by Rs2.45 at Rs63.60 on 52m shares followed by OGDC, up by Rs3.85 at Rs105.40 on 36m shares, Fauji Fertilizer Bin Qasim, firm by Rs1.40 at Rs31.40 on 18m shares, Bank of Punjab higher by Rs3 at Rs85.10 on 17m shares and Pakistan Oilfields, up by Rs11.15 at Rs315.25 on 14m shares.

Other actives included National Bank, higher by Rs3.15 on 10m shares, PSO, up Rs10 on 5m shares, Pakistan Petroleum, firm by Rs7.15 on 4m shares, MCB, up by Rs4.35 also on 4m shares and Pioneer Cement, steady by 55 paisa on 4m shares.

FORWARD COUNTER: PTCL was also actively traded on the cleared list and was marked up by Rs2.55 at Rs63.85 on 18m shares followed by OGDC, up by Rs2.85 at Rs105.60 also on 18m shares, Pakistan Oilfields, higher by Rs10.85 at Rs315.90 on 10m shares, Pakistan Petroleum, firm by Rs6.70 at Rs166.35 on 9m shares and Fauji Fertilizer, up by Rs1.45 at Rs31.40 on 7m shares. Others also finished recovered amid light trading.