KARACHI, July 27: Stocks on Thursday were back on the rails aided by active short-covering on selected counters under the lead of oil and bank shares amid reports of higher corporate earnings.

The market talk of presence of foreign fund buying in some of the leading oil shares, notably Pakistan Petroleum and OGDC, the two index-heavy scrips, appears to be the chief inspiring force behind snap rally.

The KSE 100-share index recovered the overnight loss and was quoted higher by 87.06 points at 10,430.73 as compared to 10,343.67 a day earlier, as all the leading shares finished fully recovered under the lead of OGDC, Pakistan Petroleum, Pakistan Oilfields, National Bank and PTCL, which hold about 60 percentage weightage in it.

The session’s peak level at 10,486.49 was only 14 point below its next near-term target of 10,500, while the opening level of 10,343.67 was the lowest for the day.

An idea of the market’s bullish leaning may well be had from the fact that investors apparently ignored the SECP notices to a dozen leading brokers, asking them to provide their trading date prior to the March 2005 crash. Notices are also issued to about 50 brokers of all the three bourses regarding the June 2006 market crash.

A US forensic team along with the SECP is currently probing the crash to pinpoint the main players behind it.

There is a loud whispering about the presence of strong foreign buying in some of the leading shares, notably in OGDC on reports of an imminent floatation of its GDR on the London Stock Exchange and talk of sell-off of Pakistan Petroleum, says Faisal Abbas, a leading stock analyst.

“But it is pretty difficult at this stage to say whether or not it is a long-term holding for daily trading,” he said, adding: “Its presence is evoking sympathetic buying on other viable scrips.”

Hasnain Asghar Ali, another analyst, however, claims that the current buoyant outlook is essentially guided by the dividend-driven investor perceptions rather than any other aiding factor, and investors are not inclined to miss an attractive bait of capital gains.

Plus sings dominated the list under the lead of Shell Pakistan and Nestle Pakistan, which rose by Rs25.50 and Rs49.95, respectively. Other prominent gainers included Javed Omer, Thal, PSO, Attock Petroleum, International Industries after higher final dividend of 30 per cent and bonus shares of 33 per cent, up Rs7.20, Rafhan Bestofoods, Pakistan Oilfields, which posted gains ranging from Rs5.35 to Rs17.20.

Siemens Pakistan finished with an extended fall of Rs49 and Arif Habib Securities fell by Rs12.10, followed by EFU Life Insurance, Mustehkam Cement, Gillette Pakistan, and Pakistan Hotels, off Rs5 to Rs7.05.

Trading volume rose to 251m shares from the previous 167m shares, as gainers outpaced lowers by 193 to 124, with 33 shares holding on to the last levels.

The most active list was again topped by OGDC, higher by Rs1.55 at Rs142.40 on 46m shares, followed by National Bank, which recovered from the recent lows, up Rs2 at Rs225.10 on 21m shares, Pakistan Petroleum, higher by Rs3.25 at Rs247 on 20m shares, Pakistan Oilfields, sharply higher by Rs17.20 at Rs361.35 on 12m shares, DG Khan Cement, steady by 70 paisa at Rs99.40 on 11m shares, and PTCL, lower 45 paisa at Rs42 after hitting the day’s peak at Rs43.10 on 9m shares.

Other actives were led by Dewan Salman, firm by 80 paisa on 15m shares, Pakistan Cement, up one rupee on 11m shares, Dewan Cement, steady five paisa on 10m shares, and Fauji Cement, higher by 70 paisa on 8m shares.

FORWARD COUNTER: Much of the activity remained confined to the August settlements under the lead of Pakistan Petroleum, up Rs3.75 on 5m shares, followed by OGDC, higher by Rs1.55 at Rs143.55 also on 5m shares, and Pakistan Oilfields, higher by Rs17.40 at Rs365.40 on 4m shares.