KARACHI, July 14: Stocks on Wednesday recovered from the previous lows under the lead of some pivotals, but late selling at the higher levels pushed them lower to finish with clipped gains.

After mid-session the market, however, turned in a highly erratic price movements for no apparent negative background news as investors played on both sides of the fence indulging in alternate bouts of buying and selling.

The KSE 100-share index after breaching the barrier of 5,500 at one stage, finally finished with a fractional rise of 1.01 points at 5,474.23 as compared to 5,473.22 a day earlier on late selling in some of the leading base shares.

The index is eyeing new peak level, of course, after due consolidation on the strength of most of the basic positive fundamentals, notably incoming corporate announcements from some of the leading companies, brokers said.

There was no trace of the overnight reaction as from the opening bell stocks resumed their upward drive on active short-covering at the lower levels on selected counters, wiping out the previous losses.

Energy and bank shares were again in the lead, initiating recovery under the lead of OGDCL, followed by Bank of Punjab, which rose about Rs20, what the dealers called, beyond its financial mandate supported by the ratio of dividend.

Auto shares, which responded bullishly to the import duty rates on the new and old cars lacked follow-up support followed by reports that the Central Board of Revenue will revise the rates of duty being on the higher side.

Atlas Honda, Indus Motors and HinoPak Motors being major losers, off Rs3 to Rs6 amid active selling. But OGDCL, which led to the market advance after several lean sessions, has a point to be reason on the top before the opening of IPO of Pakistan Petroleum from July 19 to 22.

"I foresee a race to be at the top between OGDCL and the PPL after the latter is quoted on the ready counter," some analysts predict, but some others say: "Current difference of rate of Rs40 between the two appears to be a bit difficult to be bridged, although the former has the potential to perform miracles on the strength of its financial footing."

Floor brokers said investors made a lot of covering purchases in mobile phone shares followed by some positive developments, notably Telenor's plan to invest $6bn to establish franchise in Pakistan.

Clariant Pakistan, Treet Corporation and Javed Omer, which rose by Rs7 and Rs20.50, were leading among the gainers, followed by Babri Cotton, Ellcot Textiles, AKD Securities, Packages and International Industries, which posted gains ranging from Rs3 to Rs4.

Losers were led by Wyeth Pakistan, Dawood Hercules and Rafhan Best Foods, off Rs9.65 to Rs16. Other prominent losers included Arif Habib Securities, Cherat Papers, Unilever Pakistan, Askari Bank, Exide Pakistan, Sitara Chemicals and Pakistan Refinery, off Rs3 to Rs4.60.

Trading volume showed a modest rise at 312m shares from the previous 300m shares but losers maintained a fair lead over the gainers at 192 to 138, with 45 shares holding on to the last levels.

OGDCL topped the list of most actives, up 20 paisa at Rs67.35 on 43m shares followed by D.G. Khan Cement, unchanged at Rs60.10 on 31m shares, ICP SEMF, higher by 65 paisa at Rs52.35 on 23m shares, Fauji Bin Qasim Fertilizer, easy five paisa at Rs18.95 on 22m shares and Hub-Power, up 45 paisa at Rs32.20 on 18m shares.

Other actives were led by PTCL, firm 15 paisa on 15m shares, Bank of Punjab, off Rs1.25 also on 15m shares, National Bank, easy 25 paisa on 13m shares, PSO, up Rs1.10 on 12m shares and Nishat Mills, steady by five paisa on 10m shares.

FORWARD COUNTER: Pakistan Petroleum again led the list, up Rs1.70 at Rs111.75 on 13m shares followed by OGDCL, firm by 15 paisa at Rs67.35 on 7m shares, Hub-Power, up 40 paisa at Rs32.25 on 4m shares and PSO, higher by Rs1.20 at Rs270 on 3m shares.