KARACHI, Aug 5: Stocks recovered modestly from the recent lows on Tuesday on active short-covering at the lower levels as leading financial institutions provided the needed moral support to massively mauled investors, but analysts doubted whether the snap rally could be sustained in the coming sessions.

The Karachi Stock Exchange (KSE) 100-share index was quoted higher by 189.29 points or 1.92 per cent at 1,0042.47, closing well above its base level of 10,000 points as compared to previous 9,853.18 points.

The KSE 30-share index also recovered 298.98 points or 2.72 per cent at 11,273.12.

Trading resumed about two hours late around 10.45am on Tuesday as high-ups of the market regulators, notably the Securities and Exchange Commission of Pakistan (SECP) and the Karachi Stock Exchange were in session at the KSE, finalising corrective steps to halt fresh decline in the share values.

“An immediate positive change in the market’s bearish psychology came after a joint meeting of the SECP-KSE and National Investment Trust high-ups decided to arrest the continued erosions in the share values,” said a leading stock analyst Faisal A. Rajabali, adding: “but how long, as there is no change in the other aiding factors, which sustain snap run-ups.”

The chief factor behind the snap rally was permission to managers of the Rs20 billion market support fund to intervene as and when required on a daily basis, rather than original stipulation of periodical intervention, he added.

Together with enormous funds at the disposal of the NIT, the market support could really give a positive direction to the market, weighed down by the negative political undercurrent, analyst Hasnain Asghar Ali predicts.

Bank, oil and cement shares, which are now ruling well below their lower circuit breakers led the market advance but turnover figure did not match the buying orders as stakeholders had purchased these shares at much higher rates.

The snap rallies had already been witnessed, including last Wednesday’s aided by positive news but faltered half way owing to the absence of supporting news in the backdrop of political and economic instability, he said.

Another analyst Ahsan Mehanti said there is no harm to buy at the current levels on selected counters as capital gains are almost ensured at least for the near-term, adding indications are that the fund support will continue in the coming sessions also.Massively battered Shell Pakistan and MCB Bank led the gainers, up by Rs13.19 and Rs12.01, followed by Al-Ghazi Tractors, Pakistan Petroleum, PSO, Pakistan Oilfields, Engro Chemical, Ferozsons Lab, and Sitara Chemicals, which posted