KARACHI, Aug 22: The stock market on Wednesday was back on the rails as investors covered positions on selected counters after the official denial about the imposition of emergency.

The change in the market direction was also noted by the snap recovery staged by the KSE 100-share index after Tuesday’s massive pruning on active short-covering by the punters in the leading bank and oil shares.

It closed at session’s high of 12,320.55 points as compared to 12,244.62 a day earlier, up by 75.93 points reflecting the strength of leading base shares. Its junior partner also recovered 147.45 points at 14,792.22.

It may take some time to reach its recently-hit index level of 13,000 points, as after having touching the bottom at 11,959.13 points it managed to settle well above 12,000-level, indicating the recovery drive would continue, brokers said.

The repeated rumours about the imposition of emergency or martial law did worry investors who were still undecided how to react to them.

The higher dividend announcements pouring in each session, so far neglected, could stimulate a lot of speculative buying in the coming sessions at the prevailing attractively lower levels, they added.

But Ahsan Mehanti is of the view that investors will have to take into consideration some of the pressing external factors, notably the outcome of some important cases in the apex court before covering of their positions.

Another market depressant was the absence of foreign investors who were scared from the negative news such as emergency rumours before resuming their normal market operations.

Leading gainers were led by Attock Petroleum and Unilever Pakistan, up by Rs11.50 and Rs56.90, followed by Arif Habib Securities and Arif Habib Ltd, National Bank, IGI Insurance, Mirpurkhas Sugar, National Refinery, Shell Pakistan, Pakistan Petroleum, Millat Tractors and Pakistan Resource Company, up by Rs5.25 to Rs13.90.

Prominent losers were led by Rafhan Maize and Nestle Pakistan, off Rs40 and Rs45. Others fell fractionally barring Javed Omer, EFU General, Javedan Cement, Siemens, Berger Paints, Gillette Pakistan and JS & Co, which fell by Rs5 to Rs20.50.

Trading volume rose further to 192m shares from the overnight’s 152m shares but losers held a modest lead over the gainers at 147 to 136, with 32 shares holding on to the last levels.

OGDC topped the list of actives on final dividend of 35 per cent, unchanged at Rs111 on 18m shares followed by TRG Pakistan, up by Re1 at Rs12.70 on 16m shares and National Bank, higher by Rs5.50 at Rs229.50 on 12m shares.

Arif Habib Securities, up by Rs5.25 at Rs126.40 on 10m shares, Bank Alfalah, lower by 55 paisa at Rs46.10 on 8m shares, PTCL, off Rs1.15 at Rs46.80 on 7m shares and Bank of Punjab, up by Rs4.30 at Rs91.15 also on 7m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, up by 70 paisa on 10m shares, Bosicor Pakistan, steady by 35 paisa on 7m shares and Hub-Power, up by Rs1.45 on 6m shares.

FORWARD COUNTER: National Bank led the list of actives on this counter, up by Rs5.40 at Rs230 on 10m shares followed by Lucky Cement, higher by Rs3.75 at Rs103.35 on 9m shares and OGDC, unchanged at Rs111.40 on 7m shares.