KARACHI, June 25: Stocks on Tuesday staged a modest recovery followed by stray short-covering in the leading base shares, but the direction of the market is unclear as investors are not inclined to make bigger commitments owing to year-end closing on June 30.

The KSE 100-share index managed to finish higher by 8.43 points at 1,776.30 as compared to 1,767.87 a day earlier, reflecting the strength PTCL, Hub-Power and PSO.

Energy shares, notably PSO and Shell Pakistan reacted bullishly to reports of deregulation of high speed diesel imports and rose sharply amid active short-covering at the higher levels. The net rise was Rs1.75 and Rs5 in them, respectively.

There was, however, no evidence of significant fresh buying by both the general investors and the financial institutions as no one was inclined to make fresh commitments owing to the closing of the financial year on June 30.

“How investors will behave during the first month of the new financial year is not clear, indications are that the new budget, which has about a dozen incentives for them will certainly be at work,” predicts a leading stock analyst.

The fact that the index did not breach through its support level of 1,750 points despite fresh heating up of the border tension, bomb attack on the US consulate in Karachi, speaks of things to come in the new financial year, he adds.

The increase in the circuit breaker (ceiling rates) to original five per cent tells about the mood of brokers and their future outlook about the market. The ceiling rates were lowered to forestall major fall in shares after the war fears with India gripped the market early this month.

Leading analysts said falling daily volumes indicate that the brokerage houses have decided to play in the new year in the backdrop of tax incentives given to the stock traders as by that time the border situation could also improve.

“Badla problems are there,” they said, adding “how the KSE high-ups will settle them, of course, amicably will add to the strength of the market after the new account opens,” they said.

Most of the price changes were again fractional and reflected both the sellers and the buyers are holding on to their positions in a bid to roll them over to the new year account.

However, Growth Mutual Fund, 17th Mutual Fund, Network Leasing, Javed Omer Vohra, BOC Pakistan and Dawood Hercules, managed to post gains ranging from one rupee to Rs2.95.

Losers were led by Dewan Textiles, Pakistan Oilfields, Wyeth Pakistan, Tri-Pack Films and Lever Brothers, which suffered fall ranging from one rupee to Rs2.15. Others fell fractionally.

The falling trading volumes are reflective of this phenomenon as everyone is awaiting the opening of the new year account. It fell to 62m shares, while gainers forced a comfortable edge over the losers at 150 to 105, with 52 shares holding on to the last levels.

Hub-Power was again actively traded, firm five paisa at Rs23.30 on 19m shares followed by PTCL, up 15 paisa at Rs17.35 on 12m shares, PSO, higher by Rs1.70 at Rs141.20 on 8m shares, National Bank, up 35 paisa at Rs19.70 on 3m shares and MCB, higher 20 paisa at Rs27.60 also on 3m shares.

Other actives were led by Sui Northern Gas, up 20 paisa on 2.860m shares, Telecard, higher 40 paisa on 2m shares, D.G. Khan Cement, steady 15 paisa on 1.325m shares and Dewan Salman, up 35 paisa on 1.187m shares.

FUTURE CONTRACTS: Barring fractional decline in FFC-Jordan Fertilizer and Fauji Fertilizer, speculative issues on the forward counter generally finished recovered under the lead of PSO, which rose by Rs1.45 and Rs1.75 in both the distant July and the ruling June contracts at Rs142.95 and Rs141.75, respectively. The turnover in June was of the order of 1.877m shares. Hub-Power accounted for 4.126m and 2.860m shares in both the contracts at Rs23.39 and Rs23.60, up 14 and 10 paisa, while PTCL was traded higher by seven and 14 paisa in both the contracts at Rs.17.35 and Rs17.55 on 1.814m and 1.705m shares, respectively.