KARACHI, Dec 20: The last two sessions’ massive fall on the stock market on Wednesday was halted as investors covered positions at the lower levels on most of the blue chip counters under the lead of bank and oil shares on reports of upward revision of Pakistan’s foreign currency rating.

The KSE 100-share index rose by 126.85 points and finished well above the psychological barrier of 10,000 points at 10,182.33 and analysts said the worst may now be over. The KSE 30-share index also recovered 184.14 points.

Although negative news were still there, market’s oversold position attracted a lot of covering purchases at the lower levels triggered by upward revision of Pakistan’s both foreign and local currency ratings to B+ and BB by Standard and Poor’s. Overall short-term sovereign rating was also upped to B.

But the chief inspiring factor behind the smart recovery was said to be market’s oversold position and the attractively lower levels reached by the leading base shares.

OGDC, National Bank, Pakistan Petroleum, MCB, Pakistan Oilfields, which together hold a weightage of about 60 per cent in the index finished with smart gains.

“The last two sessions’ massive fall was triggered on KSE in sympathy with Asian emerging markets following Thai capital control steps,” says a leading stock analyst, adding “Thailand SET index plunged by 16.5 per cent followed by Jakarta, KSE and BSE Sensex 30-share, which fell 3.4, 3.4 and 2.4 per cent respectively”.

He said the local stock market is passing through a technical correction, which incidentally is the third largest fall of the current year as it lost 14 per cent or 1,400 points. The other two being 10 per cent and 32 per cent in March and June respectively.

“The technical rebound may have paved the way for the advent of year-end buying,” another analyst said “the post-rollover week trading could be very crucial for the future direction of the market”.

Plus signs forced a strong lead over the minus ones under the lead of IGI Insurance and Pak-Suzuki Motors, which were quoted higher by Rs12 and Rs18.50, followed by MCB, UBL, Shaheen Insurance, Lakson Tobacco, Pakistan Petroleum, Shell Pakistan, Atlas Honda, Nestle Pakistan, Millat Tractors, Shezan International and Pakistan Oilfields, which posted gains ranging from Rs4.60 to Rs10.

National Foods and Gillette Pakistan fell by Rs6 and Rs7.35. Other losses were fractional barring EFU Life, Al-Abbas Sugar, Pakistan Datacom, Mirpurkhas Sugar and Treet Corporation, off Rs2 to Rs4.45.

Turnover figures showed modest rise at 141m shares as gainers topped losers by 185 to 106, with 41 shares holding on to the last levels.

OGDC, which has been under pressure for the last about a week, recovered by Rs1.90 at Rs118.40 on 17m shares followed by National Bank, higher by Rs2.10 at Rs236.10 on 12m shares, Pakistan Petroleum, higher by Rs5.50 at Rs236 also on 12m shares, PTCL, unchanged at Rs44.30 on 10m shares, Faysal Bank, up by Rs2.90 at Rs61.05 on 8m shares, MCB, higher by Rs4.60 at Rs246.85 on 6m shares and Pakistan Oilfields, higher by Rs10 at Rs254.50 on 5m shares.

Other actives were led by D.G. Khan Cement, up Rs2.25 0n 7m shares, Bank of Punjab, higher by Rs3.30 on 6m shares and Bank Alfalah, steady by 40 paisa on 5m shares.

FORWARD COUNTER: National Bank again led the list of actives, up by Rs2.44 at Rs236.95 on 10m shares followed by its January contract, higher by Rs2.06 at Rs238.90 on 5m shares and Pakistan Petroleum, up by Rs4.60 at Rs235.90 also on 5m shares.