KARACHI, Jan 19: Trading on the stock market on Monday resumed on a higher note followed by fresh active short-covering in most of the leading shares aided by reports of higher earnings and predictions of enhanced dividend.

President's smooth address to the joint session of the parliament on last Saturday amid fears of violent agitation by the opposition was said to be another supporting factor fuelling the initial run-up of the KSE index beyond the 4,700-point level.

The market capital swelled to 1,227.794bn from the previous 1,002.487bn after the addition of the massively-capitalized Oil & Gas Development Company (OGDC) to the total, making the market more attractive for the foreign investors owing to the required depth.

The KSE 100-share index confidently breached through the crucial psychological barrier of 4,700 points but late selling in some oil giants pushed it down sharply lower from the day's peak level.

After having touched its career-best level at 4,727 at one stage, up 26 points, it finally finished with a clipped gain of 4.26 points at 4,688.4 amid an actively traded session.

The early run-up in the index was attributed to credible performance of the leading base shares including PSO, and some others, notably Sui Northern Gas, Dewan Salman and KESC.

A good bit of profit-selling in Pakistan Oilfields, Engro Chemical, Fauji Fertilizer, Sui Southern Gas and some others also worked against the underlying sentiment.

All eyes remained focussed on the OGDC, which came on the ready board after having been trading around Rs53 on the forward counter since it made provisional debut last month.

Contrary to general predictions of a bullish opening, it encountered an avalanche of alternate bouts of buying and selling unsettling the market's firmly established upward stance, analysts said.

"Owing to its massive capital outlay and the size of the floating stock of 13m shares, it has the capacity and the role to play as market trend-setter", they said "the future stock trading is expected to be guided by its performance on the floor".

However, it was generally believed after having sent shock waves among the small investors, it is expected to rise to its previous level as the big ones will try to grab the floating stock at the lower levels.

It finally finished, off 55 paisa at Rs52.05 after hitting the day's lowest bid of Rs52 and resisted fresh fall below this level. "I don't think bulls have any reason to stay away after the president's smooth address to the joint session of the parliament on last Saturday", says a leading stock broker "it may not necessarily be a market factor bulls should have made it one".

Prominent gainers were led by ICP SEMF, Haroon Oils, Sitara Chemicals, Pakistan Cables, Mitchell's Fruits, PSO and Unilever Pakistan, which posted gains ranging from Rs3 to Rs13. Losers were led by Sana Industries, Ahmed Hassan Textiles, Shell Pakistan, Gillette Pakistan, Nestle MilkPak, Indus Motors, and Gatron Industries, off Rs2 to Rs3.50.

Trading volume soared to 419m shares, from the previous 382m shares as gainers maintained a firm lead over the losers at 212 to 154, with 45 shares holding on to the last levels.

Fauji Cement topped the list of most actives, higher by 75 paisa at Rs12.20 on 73m shares, reflecting a major investor buying shift to the low-priced shares from the overvalued ones, followed by Sui Northern Gas, up by Rs1.45 at Rs50.90 on 36m shares, OGDC, off 55 paisa at Rs52.05 on 32m shares, ICP SEMF, up Rs3.05 at Rs52.25 on 28m shares and PSO, sharply higher by Rs5.80 at Rs287 on 22m shares.

Other actives were led by Hub-Power, up 15 paisa 19m shares, Lucky Cement, firm by 20 paisa also on 19m shares, PTCL, unchanged on 18m shares, Dewan Salman, steady by five paisa on 14m shares and Maple Leaf Cement, higher by 45 paisa also on 14m shares.

FORWARD COUNTER: PSO came in for strong short-covering at the lower levels and rose by Rs5.55 at Rs287.75 on 5.678m shares followed by Pak Capital Market Fund, steady by 15 paisa at Rs12 on 4m shares, Sui Northern Gas, higher by Rs1.25 at Rs50.85 also on 4m shares, Hub-Power and PTCL, both unchanged at the previous level of Rs39 and Rs37.70 on 3m shares each.