KARACHI, July 1: Stocks on Thursday staged a smart recovery on active buying in selected shares aided by perception of political stability under the new setup led by Chaudhry Shujaat Hussain. The index confidently broke the barrier of 5,300, up 68.54 points, adding Rs17bn to the market capital at Rs1,439bn.

The negative fallout of capital value tax is, however, still visible as it continues to take toll in the form of low volumes not matched to the buying offers. The KSE 100-share index posted a sharp gain of 68.54 points or 1.30 per cent at 5,347.72 after having turned highly volatile performance after the resignation of former prime minister Mir Zafarullah Jamali followed by political uncertainty.

The breach through the psychological barrier of 5,300 after several previous abortive efforts reflects that the index is now in a position to resume its upward march to its previously hit peak level of 5,620 during the new fiscal year.

All the leading base shares responded to covering purchases at the lower levels and rose under the lead of OGDCL, which assisted by the cement sector, took the entire market along with them in the plus column.

OGDCL, which is ruling well below its best level of above Rs70, appears to be under speculative squeeze and may not allow the market to fall below the current levels. But rather there is a strong possibility of a major thrust during the next couple of session after PTCL and Hub-Power join the bull race.

"The new political setup is in place after the swearing in of Chaudhry Shujaat Hussain as new prime minister," analysts said, adding "although it is an interim arrangement the needed stability is there."

What seems to be the chief inspiring factor behind the current bull-run is that after an interim period of a couple of months, Pakistan's financial wizard would be at the helm of affairs and so would be his investor-friendly economic and financial policies, they said.

On technical grounds also, the market was in an oversold position and needs correction, which was delayed by the negative cross-current of political events in Islamabad after the resignation of the former prime minister.

Sitara Chemical and IGI Insurance were among the lead gainers, up Rs6.40 and Rs9, respectively, followed by Dewan Khalid Textiles, Dawood Hercules, Bata Pakistan, Shell Pakistan, National Refinery, International Industries, General Tyre, Jahangir Siddiqui Bank and Noon Sugar, which posted gains ranging from Rs2.35 to Rs6.

Losers were led by Abbott Lab and EFU Life Insurance, off by Rs7 and Rs10. Other notable losers were led by Tri-Pack Films, Artistic Denim, Shahtaj Sugar, Berger Paints, BOC Pakistan, and Al-Ghazi Tractors, off by Rs2.95 to Rs5.

Trading volume rose to 366m shares from the previous 337m shares as the advancing shares held a strong lead over the losing ones at 207 to 102, with 53 shares holding on to the last levels.

OGDCL again topped the list of most actives, higher by Rs1.90 at Rs66.40 on 70m shares followed by Lucky Cement, up Rs2.90 at Rs42 on 44m shares, D.G. Khan Cement, steady by 90 paisa at Rs58.40 on 38m shares, Hub-Power firm by 40 paisa at Rs32.70, Maple Leaf Cement, up Rs1.75 at Rs39.75 on 19m shares, PTCL, firm by 30 paisa at Rs42.45 on 15m shares and National Bank, higher by 60 paisa at Rs67.05 on 10m shares.

Others actives included Bank of Punjab, up Rs1.10 on 19m shares, Sui Northern Gas, firm by 80 paisa on 12m shares and Fauji Cement, up 40 paisa on 10m shares.

FORWARD COUNTER: OGDCL again led the list of actives on this counter, up Rs1.75 at Rs66.40 on 9m shares followed by Hub-Power steady by 45 paisa at Rs32.90 on 3m shares, Lucky Cement, sharply higher by Rs2.95 at Rs42.30 also on 3m shares.