KARACHI, Sept 5: Stocks on Friday staged a broad recovery on active short-covering in oil and some other blue chips ahead of the presidential election on Saturday spurred by the perception of victory of the ruling party candidate.

The market’s buoyant mood despite a price-freeze and floor on the index is also well-reflected in a sharp increase in the KSE 100-share index, which staged a robust recovery of 102.93 points or 1.11 per cent at 9,342.19 points, reflecting the strength of some leading base shares, while the turnover figure was boosted by active short-covering in most of the low-priced shares having potential of higher capital gains.

After chained trading owing to price-freeze imposed by the KSE high-ups since Aug 27, stock trading passed through lean sessions, but the market was certainly saved from the fresh price erosions, analysts said.

According to market sources the KSE board is due to meet on Sept 8 to decide whether or not the price-freeze is lifted and normal trading is allowed.

“The pre-presidential election buying euphoria reflects that investors are back in the arena on the perception that political uncertainty may end with the election of Asif Zardari as the new president of Pakistan,” analyst Hasnain Asghar Ali predicts.

But he fears the situation in tribal areas followed by US-led forces ground assault inside Pakistan and fresh clashes between the warring groups there could take their toll in between the possible rallies.

However analyst Tabish Hasan thinks economic worries are still there and the market talk of possible downgrading of Pakistan foreign currency credit rating by Moody’s and the fall of reserves below the $10 billion benchmark points to potential danger of default on foreign debt.

However, reports that an IMF team is due shortly to have talks with the finance minister on fresh credit lines and issuance of bonds worth Rs85bn on the local markets will line up fresh credit lines to support the official effort to eliminate possible debt default, he added.

Leading gainers were led by National Foods and Attock Petroleum, higher by Rs14.85 and Rs13.39, followed by Thal Jute, Javedan Cement, Attock Refinery, National Refinery, PSO, Mari Gas, Pakistan Oilfields, Pakistan Petroleum, Al-Ghazi Tractors, Indus Motors, Dawood Hercules, Engro Chemical, Ferozsons Lab, BOC Pakistan, ICI Pakistan, Tri-Pack, which posted gains ranging from Rs3 to Rs10.

While losers included New Jubilee Insurance and IGI Insurance, off by Rs4.90 and Rs2.50 respectively. Allied Bank, Shaheen Insurance, Ibrahim Fibres and JWD Sugar followed them, lower by Rs1.15 to Rs2.41.

Trading volume rose further to 44m shares from the previous 25m shares as gainers forced a strong lead over the losers at 115 to 28, with 83 shares holding on to the last levels.

NIB Bank led the list of actives, up by 74 paisa at Rs9.19 on 3.897m shares, followed by Nishat Mills, higher by Rs2.33 on 3m shares, WorldlCall Telecom, unchanged at Rs7.80 on 2.004m shares, Bank Alfalah, up 75 paisa at Rs32 on 1.790m shares, Engro Chemical, sharply higher by Rs7.56 at Rs188 on 1.330m shares and D.G. Khan Cement, steady by 22 paisa at Rs39.50 on 1.321m shares.

Other actives were led by Bosicor Pakistan, steady by 15 paisa at Rs8.85 on 1.696m shares, Fauji Fertiliser Bin Qasim, firm by 10 paisa at Rs22.88 on 1.501m shares and Zeal-Pak Cement, unchanged at Rs1.16 on 1.284m shares.

FORWARD COUNTER: NIB Bank also led the list of actives on this counter, up by 71 paisa at Rs9.25 on 1.026m shares, Engro Chemical, sharply higher by Rs6.40 at Rs188 on 0.394m shares and MCB Bank, unchanged at Rs238.26 on 0.382m shares.