KARACHI, Feb 27: Stocks on Wednesday staged a broad recovery as Lahore-based support figured prominently on selected counters and drove bears out of the market just in one go. The KSE 100-share index rose by 41 points at 1,759.08.

The market seems to be in the tight group of speculative forces based partly on the perception of a robust economy and an imminent big sell-off of the state-owned units including PSO and PTCL.

“Both the genuine investors and the speculative forces are out to take positions in the shares on the privatization list at lower level for capital appreciation,” analysts said.

Massive buying in the share of Pakistan State Oil (PSO) amid hot news of its early sell-off triggered buystops in the other pivotals putting the market back on the rails after Tuesday’s weak performance and there are good reasons behind the moping operations, they added.

“The Lahore-based speculative support picked up the thread where it has left in the pre-Eid holidays and lured others in the ring to give a buoyant outlook to wavering investors,” floor brokers said, adding “both the mega issues, PTCL and Hub-Power will, be traded spot and they are not inclined to miss the available breather.”

The KSE 100-share index breached through the barrier of 1,750 just in one go at 1,759.08, raising hopes that the next chart point of 1,800 may not be that far off. The net rise over the day was 40.74 points or 2.37 per cent.

“PSO has been in strong speculative for the last about two weeks followed by the Privatization Commission’s firm resolve to disinvest it before the current fiscal is out the deadline being June 30,” stock analysts said. Its share posted a gain of Rs10 at Rs143.75.

Its 10-rupee share value has appreciated by Rs30 since then and it may go to any high in the subsequent sessions despite lower sales for the first half of the current year owing to inventory losses. Its previous all-time record was established in the 1990s at Rs400 per share.

“A prominent oil giant is after its floating stock and is cornering it apparently to have enough stake before the final bid,” says a member of the KSE.

While the board meeting of Pakistan PTA was held on Wednesday (Feb 27), the ICI Pakistan directors will meet on Thursday (Feb 28) to review the annual accounts and may declare dividend. Both the shares evoked good interest and ended higher.

Apart from a galore of board meetings, notably from the textile and sugar sectors whose annual accounts close on Sept 30, and expectations of dividend, the perceptions of an economic recovery also aided the market to behave properly.

“The market could rise further as long as the Lahore-based support persists, but it is unclear what will be its reaction after it withdraws,” broker said, adding “it then will fall to the lot of institutional traders and foreign investors to keep the rising tempo up.”

All the sectors participated in the run-up, energy, textile and chemical shares being in the forefront on strong support.

Nestle Milkpak responded favourably to 60 per cent final dividend and rose by Rs8.05 and so did PSO, which spurted by Rs10 on speculative support. Lever Brothers recovered the overnight loss and was up by Rs19.90.

Other good gainers were led by 9th ICP, Adamjee Insurance, Star Textiles, Gatron Industries, Al-Ghazi Tractors and Shell Pakistan, rising by Rs1.45 to Rs3.45.

Losers were led by Millat Tractors, Murree Brewery, Fateh Industries, Crescent Steel, Rupali Polyester, Berger Paints and Blessed Textiles, which suffered fall ranging from Rs1.25 to Rs4.

Trading volume rose to 198m shares from the previous 170m shares as advancing shares forced a strong lead over the losers at 119 to 78, with 49 holding on to the last levels out of 246 actives.

PTCL topped the list of most actives, up 95 paisa at Rs19.10 on 79m shares, Hub-Power, firm by 15 paisa at 39m shares, PSO, sharply higher by Rs10 at Rs143.75 on 22m shares, Fauji Fertiliser, up 60 paisa at Rs50.50 on 11m shares, KESC, higher 75 paisa at Rs7.80 on 9m shares, Engro Chemical, off 40 paisa at Rs76.75 on 6m shares, Sui Northern, firm by 35 paisa at Rs13.75 also on 6m shares and ICI Pakistan, steady by 20 paisa ahead of its board meeting at Rs48.70 on 4m shares.

FUTURE CONTRACTS: PSO also came in for strong support on the forward counter and was quote higher by Rs9.90 at Rs142.30 on 1.108m shares. All other shares also rose modestly barring Engro Chemical, which fell by five paisa at Rs74.05.