KARACHI, Aug 2: The share market on Thursday recovered from the overnight lower levels as investors resumed normal trading activity but buying support lacked aggressiveness associated with a bull run. The

KSE 100-share index was marked up by 81.62 points at 13,770.52.

Investors seemed to be still in the process of absorbing the negative impact of half a per cent hike in the discount rate on the share business. The market witnessed a pressure on money supply as a big amount of well over Rs20 billion is tied to the Habib Bank IPO and other lenders have put on hold their money to lend at higher interest rates.

No one could dispute the fact that interest rate hike would make bank borrowing expensive, which in turn would have a negative impact on the entire economy, including industrial activity but it will certainly chain the monster of inflation and remove some other irritants of the financial regime, said a leading analyst.

However, the dust raised on the widely speculated Dubai meeting will continue to have its toll until it settles down on some positive note, he added.

But one thing is clear the way with which the market absorbed successive shocks during the last about four months reflects that it has reasons to stay at the index level of 14,000 points (base 1,000 points).

But some others said investors seem to have essentially relied on the positive market factors rather than overawed by the compulsions of the situation, which aims at attacking the inflation and some other economic deterrents.

The KSE 100-share index recovered from the overnight lower level and was marked up by 81.62 points at 13,770.52 as compared to 13,688.90 a day earlier, reflecting the strength of leading base shares. The KSE 30-share index on the other hand rose by 50.83 points at 16,559.45.

While overvalued shares were generally neglected as investors were not inclined to go far from them owing perhaps to financial risks involved, bulk of the support remained confined to most of the second-liners, notably those having a potential of capital appreciation.

Fauji Cement, Fauji Fertiliser Bin Qasim and Bosicor Pakistan were leading among them both in terms of higher gains and turnover amid active trading.

The market advance was led by the insurance sector under the lead of IGI Insurance, up by Rs17.65 followed by Pakistan Resource Co, EFU General, EFU Life, and Adamjee Insurance, which rose by Rs12.05 to 15.10.

Other good gainers include Javed Omer, Fazal Textiles, Sapphire Fibres, Lakson Tobacco, Attock Petroleum, Mari Gas, Hino Pakistan, Ferozsons Lb, Bata Pakistan, Packages and JS & Co, which posted gains ranging from Rs7 to 40.25.

Losses on the other hand were fractional barring Central Insurance, Exide Pakistan, Attock Refinery, Thal Jute, Shell Pakistan and Siemens Pakistan, off by Rs3 to 20.

Trading volume was maintained at the overnight level of 273m shares but gainers forced a strong lead over the losers at 196 to 129, with 37 shares holding on to the last levels.

Fauji Cement topped the list of actives, up one rupee at Rs22.45 on 27m shares followed by Bosicor Pakistan, steady by 45 paisa at Rs20.90 on 24m shares, Pak PTA, firm by 30 paisa at Rs6.55 on 18m shares, Fauji Fertiliser Bin Qasim, higher by Rs1.05 at Rs46.55 on 16m shares and WorldCall Telecom, up 30 paisa at Rs20.50 on 11m shares.

Other actives were led by Pakistan Cement, lower 10 paisa on 9m shares, NIB Bank(right),up one rupee on 9m shares, Lucky Cement, up 60 paisa also on 9m shares, Maple Leaf Cement, easy 40 paisa on 8m shares and Pakistan Petroleum, higher by Rs1.20 on 7m shares.

FORWARD COUNTER: Habib Bank led the list of actives on the cleared list, up by Rs15.15 at Rs340.15 on 16m shares followed by Lucky Cement, steady by 20 paisa at Rs129.20 on 5m shares, and Fauji Fertiliser Bin Qasim, higher one rupee at Rs46.50 on 4m shares.