KARACHI, Oct 31: The share market on Wednesday staged a snap rally followed by strong covering purchases at the lower levels in oil and banking shares on some positive news on the corporate front. The KSE 100-share index recovered 292 points or 2.08 per cent at 14,319.42.

“The broad recovery appears to be inspired one as I don’t find any encouraging news from the political or legal front,” said an analyst while commenting on the market’s strange ways to react in various situations.

The KSE 100-share index recovered a good part of the overnight losses on strong covering purchases on the blue chip counters aided by some positive news from the political and corporate fronts.

It ended the session with a gain of 291.80 points or 2.08 per cent at 14,319.42 as compared to 14,027.80 a day earlier as all the leading base shares recovered from the overnight lows. Its junior partner KSE 30-share index rose by 289.23 points at 17,288.07 points.

There was no trace of the overnight massive sell-off as the trading resumed as both leading institutional traders and foreign investors covered positions in most of the leading shares at the lower levels.

National Bank, MCB, Pakistan Petroleum, OGDC, Bank Alfalah, Arif Habib Securities were among the leading gainers behind the strong recovery in the index.“There is no harm to put money in the above shares because of their inherent strength and their capacity to rise from any low after the sanity returns to law and order and political fronts,” said a broker, adding “to go beyond them in the prevailing conditions is fraught with high financial risks”.

Analysts, however, warned the investors to play safe and not follow the speculative run-up at this stage before the Supreme Court verdict on the president’s eligibility as a presidential candidate.

“Positive corporate news alone may not be in a position to save them from any major shakeout as was witnessed on Tuesday,” they said, adding “the market may not absorb any snap political or legal depressant at this stage”.

Plus signs again dominated the list under the lead of Colgate Pakistan and Wyeth Pakistan, up by Rs26 and Rs92.40 followed by Habib Bank, MCB, National Bank, IGI Insurance, Engro Chemical, BOC Pakistan Clariant Pakistan, Sitara Chemical, Packages and Pakistan Services, which posted gains ranging from Rs10.30 to Rs20.

Indus Motors and Siemens Pakistan led the losers, off by Rs20.30 and Rs30 respectively. Other losses were fractional barring Exide Pakistan, Fazal Textiles, Grays of Cambridge and Pak-Suzuki Motors, off by Rs5 to Rs20.25.

Trading volume showed a

modest rise at 307m shares from the previous 256m shares as gainers outpaced losers by 238 to 130, with 33 shares holding on to the last levels.

Arif Habib Securities topped the list of most actives higher by Rs8.05 at Rs179.45 on 24m shares followed by OGDC, up by Rs3.85 at Rs128.20 also on 24m shares and Nimir Chemicals, firm by Re1 at Rs6.20 on 21m shares.

Bank Alfalah, higher by Rs1.85 at Rs56 on 17m shares, Bank of Punjab, steady by Rs2.75 at Rs100.60 on 14m shares, Pakistan Petroleum, higher by Rs9.60 at Rs264.85 on 10m shares and National Bank, up by Rs10.30 at Rs249.00 also on 10m shares.

Other actives were led by TRG Pakistan, lower 25 paisa on 18m shares, Javed Omer, up by Rs7.85 on 11m shares and NIB Bank, unchanged on 9m shares.

FORWARD COUNTER: National Bank came in for strong support and led the list on this counter, up by Rs11 at Rs251.25 on 7m shares followed by Bank of Punjab, higher by Rs3 at Rs101.60 on 6m shares, MCB, sharply higher by Rs18.10 at Rs380.60 also on 6m shares.