KARACHI, Sept 4: The KSE 100-share index on Tuesday staged a snap recovery and was quoted higher by 1.3 per cent or 160 points on active short-covering in the leading base shares at the attractively lower levels.

However, it absorbed the shock of suicide bomb attacks in Islamabad, killing a number of security personnel but failed to sustain the early run-up to 12,433.28 points. The run up was also halted by conflicting rumours about some positive political changes in the capital, which, analysts said, may end the prevailing uncertainty.

But the rumours faded by the close of the session allowing the index to finish modestly reacted from the session’s peak at 12,393.10. The KSE 30-share index on the other hand rose by 247.01 points at 15,195.93.

“Essentially, it was a technical rally as tired bulls resumed covering operations at the lower levels mostly on the risk-free sectors of banks and cement,” said a leading analyst Ashraf Zakaria adding the news from the political front is terribly disturbing and peace appears to be a remote possibility at this stage.”

Fresh heavy buying in MCB, National Bank, OGDC, Lucky Cement, Bank Al-Falah and D.G. Cement took the entire along with them in the plus territory and indications are that investors seem to have gone along the positive market fundamentals rather than awaiting the outcome of political parleys.

MCB maintained its upward drive on the forward counter and was quoted further higher by Rs15.80 at Rs335.50 on active follow-up support linked to its GDR.

There is a loud whispering that some of the foreign funds have resumed their covering operations on selected counters, which in turn lured locals back in the arena leading to a sustained recovery. But the report was not confirmed by the leading analysts. Investors, notably foreign ones were waiting for the signing of the much-publicised power sharing deal between Musharraf and Benazir for the last three weeks but some time the talks stalled on some issues and resumed again.

But uncertainty associated with it continues and there are no signs of positive developments on the issue as the contenders of power are out to outwit each other, Hasnain Asghar Ali, another analyst said.

But analyst Ahsan Mehanti doubts market’s ability to sustain snap rallies in the prevailing uncertain political conditions, there could be flutters here and there as a rescue operation for those, who are trapped in the last month’s boom.

EFU Life and JS & Co were leading among the gainers, up by Rs17.45 and 42.55. Other good gainers were led by Colgate Pakistan, Mari Gas, Millat Tractors, JS Global, National Foods, MCB, Pakistan Resource Co, and Pakistan Services, which posted gains ranging from Rs7 to 16.

Top losers were led by Sanofi-Aventis and Fazal Textiles, off by Rs10.85 and 18 followed by Allied Bank, Javedan Cement, Glaxo-SKF, Attock Refinery, Dawood Hercules and Berger Paints, off Rs3.85 to 10.

Trading volume improved to 197m shares from the previous 137m shares as gainers held a strong lead over the losers at 186 to 105, with 39 shares holding on to the last levels.

Bank Al Falah led the list of actives, up by Rs2 at Rs47 on 26m shares followed by National Bank, higher by Rs5.05 at Rs234.05 on 16m shares, Lucky Cement, up Rs5.35 at Rs112.80 on 9m shares, OGDC, higher by Rs1.40 at Rs107.15 also on 9m shares, Bank of Punjab, firm by Rs2 at Rs99.50 on 7m shares, D.G.Khan Cement, up Rs4.25 at Rs95.75 also on 7m shares and Askari Bank, higher by Rs1.75 at Rs89.75 also on 7m shares. Other actives were led by WorldCall Telecom, easy five paisa on 8m shares followed by Arif Habib Securities, up by Rs1.05 on 7m shares and Attock Refinery, off Rs3.05 on 6m shares.

FORWARD COUNTER: National Bank also led the list of actives on the cleared list and was marked up by Rs4.95 at Rs235.50 on 7m shares followed by MCB, sharply higher by Rs15.80 at Rs335.50 on 5m shares and Lucky Cement, up by Rs5.40 at Rs113.40 also on 5m shares.