KARACHI, Aug 28: Stocks on Monday staged a snap rally on strong institutional support in most of the leading base shares, pushing the index higher by 292 points or 3.04 per cent at 9,876.51.

The opening was, however, terribly weak as the index early shed well over 200 points on hasty selling, what the analysts called reaction to the killing of former chief minister of Balochistan. But latter support was attributed to technical factors in an oversold market.

Although general investors kept to the sidelines apparently not inspired by selective run-up, those who were inclined to take fresh risk followed them despite a loud whispering about the deceptive “turnaround”, one analyst said.

Analysts were predicting that the stock market might receive heavy battering owing to negative fallout of Sardar Akbar Khan Bugti’s killing in an army operation and no-trust motion against the prime minister but the market seemed to have ignored both the bad news.

Bulk of the support originated from the financial institutions, which have enormous funds at their disposal to intervene in a falling market and put it back on the rails, they said.

An idea of buying flurry at the attractively lower levels may well be have from the fact that all the leading base shares closed around their upper locks. OGDC, MCB, National Bank, Pakistan Oilfields, Pakistan Petroleum were leading among them.

A section of leading investors was, however, a bit surprised over the grand recovery in an atmosphere in which everyone was worried and asking “what next,” analysts said.

But some others claimed the rally appears to be “inspired” initiated by a group of leading brokers in an apparent effort to demonstrate that the no-trust motion against the prime minister or the killing of Sardar Bugti may have no relevance to the basic market fundamentals.

However, no one could deny the fact that the market was in a highly oversold position owing to last week’s massive sell-off and needed correction, which came at a time when background news were negative, they added.

Next couple of sessions would show whether or not the rally was real or inspired but indications were that heating up of the political scenario would continue to have negative impact on the market’s future performance, some others said.

After several lean sessions, plus signs held modest lead over the minus ones under the lead of Pak-Suzuki Motors and Arif Habib Securities, which recovered Rs15.70 and Rs20.70, followed by MCB, National Bank, PSO, Shell Pakistan, Pakistan Refinery, Al-Ghazi Tractors, Pakistan Cables, Pak-Suzuki Motors, Pakistan Petroleum and Pakistan Oilfields, up by Rs8.05 to Rs15.70.

Losses on the other hand were fractional barring IGI Insurance and Packages were quoted lower by Rs9.05 and Rs10.85. Other prominent losers were led by Island Textiles, Pakistan Resource Company, Javedan Cement, Pakistan Engineering, Clover Pakistan Attock Cement and Gillette Pakistan, off Rs4.05 to Rs6.

Trading volume showed a modest rise at 183m shares thanks to active short-covering sans large selling as advancing shares topped losers at 153 to 141, with 23 shares holding on to the last levels.

MCB led the list of actives, higher by Rs8.05 at Rs209.90 on 20m shares followed by OGDC, up by Rs5.40 at Rs125.40 on 17m shares, D.G. Khan Cement, steady by Rs2.85 at Rs91.65 on 16m shares, National Bank, higher by Rs10.25 at Rs215.95 on 13m shares, PTCL, firm by Rs1.50 at Rs41.70 on 12m shares, Pakistan Oilfields, up Rs14.55 on 11m shares and Pakistan Petroleum, higher by Rs11 at Rs231.25 on 11m shares.

Other actives were led by Bank of Punjab, up by Rs3.30 on 12m shares, PICIC, higher by Rs2.65 on 5m shares and Fauji Cement, firm by 80 paisa also on 5m shares.

FORWARD COUNTER: MCB was also actively traded on the forward counter and rose by Rs6.95 at Rs212 on 6m shares followed by OGDC, higher by Rs4.60 at Rs123.25 on 5m shares and Pakistan Oilfields, up by Rs13.14 at Rs343 also on 5m shares.