KARACHI, June 4: Stocks on Tuesday showed highly erratic price movements followed by conflicting rumours from Almaty about the Indo-Pakistan peace talks as investors played on both sides of the fence awaiting the official word on the Russia-China initiative to bring the two warring leaders on the negotiating table. The KSE 100-share index recovered 28 points at 1,675.52.

The finish was, however, on a strong note and reflected that investors are more than sure that the military standoff between the two neighbours may end through the Sino-Russian peace initiative.

But it was unclear till the close of the market whether or not both the leaders had one-to-one meeting after having separately met the Sino-Russian peace brokers, says a member of the KSE.

The KSE 100-shares index earlier soared by 40 points on an agency report that the Indian prime minister has agreed to talk to the Pakistani president but the subsequent denial pushed it again down.

However, speculators were not inclined to leave the arena and again re-entered the market with stoploss buying orders and pushed the index higher to close at 1,675.52, up 27.83 points.

An optimism prevailed in the market on the perception that joint efforts of China and Russia could bring the two rivals on the table to initiate peace talks in the region.

But some independent stock analysts think otherwise, saying “the nerve centre of war and peace is somewhere else and until a nod comes from there the goal of peace may remain elusive.”

Speculators may not have better chance than the Almaty moot to cover losses after spreading positive rumours and creating bullish euphoria and that is what they are doing.

“Almaty moot may not be able to broker peace between Pakistan and India, it will certainly smooth down the prevailing war-like hysteria and the border tension,” some brokers predict.

They said investors should focus their attention on the visit of the US defence secretary possibly by the next week, which could be result-oriented.

All the leading shares participated in the run-up on strong support at the lower levels and put the market back on the rails.

Leading gainers were led by Wyeth Pakistan, Lever Brothers, Universal Leather Pak-Reinsurance and Fateh Textiles, up by Rs.5 to 22.

They were followed by Metropolitan Bank, Habib Insurance, Shell Pakistan, Husein Sugar, Sapphire Textiles, Honda Atlas, BOC and Packages, which posted gains ranging from one rupee to Rs.3.20.

Losses on the other hand were fractional barring Treet Corporation, New Jubilee Insurance and Shafiq Textiles, falling by one rupee to Rs.1.30.

Trading volume rose to 156.291m shares from the previous 57m shares as the advancing shares forced a strong lead over the losing ones at 145 to 85, with 48 shares holding on to the last levels.

Hub-Power was actively traded and accounted for about a half of the total volume, up 50 paisa at Rs.22.95 on 67m shares followed by PTCL, higher also by the same amount at Rs.15.90 on 39m shares, PSO, up 55 paisa at Rs.126.20 on 10m shares, FCC-Jordan Fertilizer, steady by five paisa at Rs.6.50 on 8m shares and Sui Northern Gas, higher 75 paisa at Rs.13.65 also on 8m shares.

Other actives were led by KESC firm by 15 paisa on 5m shares, Engro Chemical, up Rs.1.10 on 3m shares, ICI Pakistan, firm by 45 paisa on 2.388m shares, Pak PTA, unchanged on 2m shares and MCB, higher 70 paisa on 1.602m shares.

FUTURE CONTRACTS: Speculative issues on the forward counters also moved in tune with the ready section and generally finished recovered under the lead of Fauji Fertilizer, up Rs.1.15 at Rs.43.25 on 0.145m shares.