KARACHI, July 20: The KSE 100-share index on Friday resisted fresh decline as bulls made strong selective buying at the lower levels on almost all the blue chip counters on the perception that the panic sell-off was overdone and the market was ripe for a grand technical rebound.

The immediate aiding factor supporting the snap weekend rally was a report that CFS cap on 43 shares would be removed in due course and a belated positive reaction to approval of the new petroleum policy accelerated the market recovery from the early session fall of 200 points, said a leading stock analyst.

The KSE 100-share index recovered 158.42 points at 13,351.79, as leading base shares, notably MCB, OGDC, PTCL and Pakistan Petroleum posted sharp gains adding Rs34.183 billion to the market capital at Rs3,919.866 billion. Its junior partner 30-share index on the other hand recovered 306.16 points at 16,074.58.

The underlying sentiment was also uppishly inclined ahead of Supreme Court ruling on the reference filed by the government against the Chief Justice amid loud whispering that he may be restored, some analysts said, although the apex court ruling came after the close of trading during the afternoon session at 4 pm.

“I don’t see it as a rescue operation launched by the financial institutions inspired by dictates beyond the market technical demands,” said a leading analyst, adding “covering purchases at the attractively lower levels in the main base stocks having a massive weightage in the KSE 100-share index”.

The important thing was that the rebound manifested itself in a bigger way at the weekend session, which generally attracts selling from jobbers and sundry speculators who are not inclined to take risk during the intervening holidays.

After having fallen by about 1,000 points or seven per cent during the last couple of sessions on reports of bloodshed in the series of suicide attacks, the market base has been violently shaken and investors were terribly scared and could not precisely decide to “buy or sell”.

The general perception is that the current tempo of recovery could be sustained during the next week also as by that time positive impact of apex court’s ruling of restoring the chief justice may well prove another aiding factor, some analysts said.

Nestle Pakistan and Wyeth Pakistan were leading among the gainers, up by Rs50 and Rs73.50, followed by Pakistan Oilfields, Pakistan Petroleum, Indus Motors, Al-Ghazi Tractors, National Refinery, Central Insurance, Shell Pakistan, Shezan International, MCB and Lakson Tobacco, which ended higher by Rs7 to Rs27.

Prominent losers were led by Unilever Pakistan and JS & Co, which fell by Rs20 and Rs21.55 respectively. Others were led by EFU Life, Javed Omer, Pakistan Resource Co, KSB Pumps, Mari Gas, Exide Pakistan, Sanofi-Aventis, which suffered fall ranging from Rs6.70 to Rs12.20.

Trading volume fell further to 260m shares from the previous 322m shares as gainers held a fair lead over the losers at 177 to 124, with 18 shares holding on to the last levels.

OGDC led the list of on strong buying aided by the new Petroleum Policy, up Rs2.85 at Rs120.40 on 20m shares, Fauji Fertiliser Bin Qasim, higher by 95 paisa at Rs45.85 on 16m shares and Arif Habib Securities, off Rs4.10 at Rs129.80 on 12m shares.

National Bank, easy by Rs2.75 at Rs237.69 on 10m shares, PTCL, higher by Rs1.45 at Rs57.95 on 9m shares, MCB, higher by Rs10.55 at Rs312 on 8m shares and Pakistan Petroleum, up by Rs10 at Rs268 also on 8m shares.

Other actives were led by D.G. Khan Cement, higher by Rs2.75 on 10m shares, Lucky Cement, lower by 95 paisa on 9m shares and Bosicor Pakistan, up by 20 paisa on 10m shares.

FORWARD COUNTER: National Bank remained under pressure and was quoted further lower by Rs3.55 at Rs238 on 8m shares, followed by MCB, higher by Rs9.40 at Rs312 on 6m shares and OGDC, up by Rs2.20 at Rs120.40 on 6m shares.