KARACHI, Sept 8: Stocks on Thursday shrugged off the last two sessions’ hesitancy and were back on the rails with a bang followed by heavy covering purchases in most of the pivotals. The KSE index recovered 80 points at 7,884.21.

Barring PSO and Pakistan Oilfields, which rose sharply higher from their recent lows, price increases in leading shares were mostly fractional despite active short-covering, reflecting sellers’ reluctance to go all-out for unloading their stock holdings, analysts said.

There was, therefore, no trace of the previous weakness as the market witnessed a major change in its psychology at the fag-end of the session amid active short-covering.

The opening was, however, a bit hesitant as investors played on both sides of the fence ahead of Friday’s opposition anti-government strike amid fears of law and order situation. The KSE index fluctuated within a narrow groove of 28 points both ways.

But after the mid-session, the market witnessed a flurry of buying orders at the lower and lifted the KSE 100-share index up by 79.80 points, or 1.07 per cent at 7,884.21, as compared to 7,804.41 a day earlier. All the leading base shares, notably PTCL, OGDC and National Bank actively contributed to the run-up. The market capital also recovered Rs20.331 billion at Rs2,245.970 billion.

PTCL was again in the news amid rumours that the government is expected to unload its 8.5 per cent stake in its “A” share lot. The big question being debated is whether or not the UAE-based Etisalat will bid for it. The offloading will certainly add to its existing B-class shares, 26 per cent of which has been purchased by Etisalat for $2.59 billion or Rs117.00 per share.

The Thursday’s recovery showed each technical correction will pave the way for a grand rebound on the strength of higher corporate announcements and an attractive bait of capital appreciation.

The market may react from the current levels on Friday partly because of weekend considerations and partly to negative fallout of the general strike, but it could resume its upward journey possibly be the next week.

Some analysts, however, fear negative fallout of the strike in case it is successful throughout the country against alleged rigging in local body elections, POL price hike and president’s holding of two posts.

“It could be the beginning of an anti-government drive,” they said. “If the present political agitation gathers momentum, there could be some bad days for the share business.”

The impending showdown between the contenders may not be a good thing for the market, which has just come out of the Badla-related standoff, and a possibility of big shakeout may not be ruled out, they fear.

Plus signs dominated the list under the lead of Shell Pakistan and Unilever Pakistan, up Rs17.60 and Rs18, respectively, followed by Pakistan Oilfields, Artistic Denim, Arif Habib Securities, Attock Refinery, PSO, Al-Gazi Tractors, Millat Tractors and National Refinery, which posted gains ranging from Rs5.50 to Rs16.

National Foods and United Sugar were prominent among losers, off Rs6 and Rs6.50, respectively. They were followed by Dawood Hercules, Siemens Pakistan, PNSC, Javed Omer and Abbott Lab, off Rs2 to Rs5.

Trading volume fell to 367m shares from 429m shares a day earlier, as investors held on to their positions anticipating further rise in share values. Gainers outpaced losers by a fair margin at 187 to 108, with 38 shares holding on to the last levels.

PTCL topped the list of actives, up 60 paisa at Rs66.15 on 41m shares, followed by National Bank, higher by 45 paisa at Rs125.05 on 48m shares, OGDC, steady Rs1.05 at Rs111.60 on 28m shares, Bank of Punjab, up one rupee at Rs104.60 on 27m shares, DG Khan Cement, firm by 50 paisa at Rs65.05 on 26m shares, MCB, higher by Rs1.60 at Rs115.40 on 25m shares, Pakistan Oilfields, higher by Rs15.50 at Rs364.90 on 20m share, and PSO, up Rs9.80 at Rs390.20 on 19m shares.

Other actives were led by Nishat Mills, higher by Rs4.10 on 23m shares, and Pakistan Petroleum, lower 35 paisa on 20m shares.

FORWARD COUNTER: OGDC came in for active buying at the lower levels and recovered 85 paisa at Rs112.30 on 12m shares, followed by National Bank, higher by Rs2.15 at Rs125.60 also on 12m shares, Pakistan Petroleum, firm by 40 paisa at Rs185.90 on 11m shares, Pakistan Oilfields, higher by Rs3.90 at Rs356.90 also on 11m shares and Nishat Mills, up Rs3.85 at Rs91.50 on 9m shares. Others also rose amid light trading.