KARACHI, Feb 18: Stocks on Wednesday recovered from the recent lows on active short-covering in pivotals aided by reports of an accord with the visiting Indian delegation on the agenda for future high-level peace talks. The KSE index finished at 4,899.58, up 67.19 points.

But what seems to have changed the market outlook was the reports of meeting of the SingTel team with the president, which investors thought could well prove a prelude to its disinvestment.

For the second session in a row, PTCL is a keenly sought after share and in the process has crossed the barrier of Rs40 on large volume on market talk of its possible sell-off to SingTel, says a leading broker.

Reports of an accord on the agenda of further high-level peace talks between Pakistan and India in Islamabad meeting was another aiding factor raising hopes of normalization of relations between the two neighbours.

"Broad agreement with India on all the issues including the Kashmir may still be an elusive goal, the prevailing optimism reflects there could be a major breakthrough on the other counters," analysts hoped.

The mid-session breach of the level of 4,900 for the third time during the current month reflects bulls are out to maintain their upward drive but bears go into action after this level is touched.

It finally ended around 4,899.58, up 67.19 points as compared to previous 4,832.39 a day earlier as all the leading base shares recovered smartly from the previous lows under the lead of PTCL, which holds 33 per cent weightage in it. Market capital also recovered Rs16.199bn at Rs1,273.316bn.

"But I don't think bears could halt its upward drive this time," analysts said. "The on-going peace talks with India, higher corporate dividend, steady inflow of foreign investment buying may not allow leading bulls to sit idle."

News of an interest shown by a leading MNC to purchase the controlling shares of the PTCL coupled with higher interim earning was another stimulating factor trigging a lot of speculative activity in it and some other leading issues, which had dropped sharply lower during the last three sessions.

Auto shares, which have been under persistent selling since the cabinet decision to allow import of second hand and reconditioned cars and cut in import duty also attracted active buying at the lower levels on the strength of their higher earnings. Energy shares followed them after having received massive battering during the last couple of sessions. Leading among them recovered appreciably from the current lows.

Meanwhile, the market showed a mixed reaction to the setting up of an experts' committee by the SECP to formulate a comprehensive plan for the demutualization and integration of the country's bourses.

A meeting has been called by the highups of the exchanges on Feb 28, in Lahore to debate the issue including its merits and demerits. All the pivotals virtually raced toward their pre-reaction levels and amid active trading.

Leading gainers being PTCL, Engro Chemical, Fauji Fertilizer, ICI Pakistan, Dewan Salman and Sui Southern Gas on reports that its recent issue including five per cent green shoe option was heavily oversubscribed. The refund will be made by March 2, 2004.

Javed Omer and Fateh Textiles led the major gainers, up by Rs12.15 and Rs20.85 followed by HinoPak Motors, PSO, Shell Pakistan, Attock Refinery ahead of its board meeting on Feb 20 and Gatron Industries, which posted gains ranging from Rs6 to Rs8.05.

Losers were led by Dreamworld, Pakistan Refinery, Lakson Tobacco, and Unilever Pakistan, off Rs4.15 to Rs10. Other prominent losers included Pak Gum Chemicals, Aventis, Clover Pakistan, National Refinery, Yousuf Textiles and IGI Insurance, off Rs2.25 to Rs4.

Trading volume rose to 313m shares from the previous 270m shares as gainers forces a strong lead over the losers at 206 to 128, with 60 shares holding on to the last levels.

PTCL topped the list of most actives, higher 75 paisa at Rs40.05 on 73m shares, followed by FF Bin Qasim, up 55 paisa at Rs20.55 on 26m shares, PSO, sharply higher by Rs6.55 at Rs291.70, PIAC, firm by Rs1.10 at Rs23.60 on 21m shares and OGDC, steady by 15 paisa on reports of fresh oil concessions, at Rs52.25 on 18m shares.

Other actives were led by Dewan Salman, higher by Rs1.10 on 18m shares, ICP SEMF, up Rs2.80 on 15m shares, Hub-Power, firm by 25 paisa on 11m shares, KESC, lower 30 paisa also on 10m shares and Sui Southern Gas,up 50 paisa on 9m shares.

FORWARD COUNTER: PSO led the list of actives on strong covering purchases, up Rs5.75 at Rs291.55 on 9m shares followed by PTCL, higher 75 paisa at Rs40 on 8m shares, Hub-Power, up 35 paisa at Rs39.30 on 4m shares, Pak PTA, higher by 90 paisa at Rs17.45 also on 4m shares and FF Bin Qasim, up 40 paisa at Rs20.55 on 4m shares.