KARACHI, July 1: Stocks opened the new year account on a positive note, as investors made active covering purchases at the lower levels but there was no matching selling amid predictions of an imminent price flare-up. The KSE 100-share index recovered 15.02 points at 1,785.14.

The lowering of the circuit breaker to 5 per cent from the previous 2.5 per cent on the perception of an overdue robust technical rally may not be the only stimulating factor behind the change in the market psychology, several other factors including its oversold position also contributed to recovery.

Energy shares barring Shell Pakistan, notably PSO, National Refinery, Attock Refinery reacted favourably to the Sunday’s modest increase in the selling prices of petroleum products and so did some textile shares and some blue chips on other counters.

The post-budget sessions saw a terrible calm, not warranted by the objective conditions, although the index fluctuated between 1,760 on the lower side and 1,790 on the higher side, reflecting the inherent strength of the market.

The KSE 100-share index recovered 15.02 points at 1,785.14, sending signals that the real battle of wits between the bulls and bears will resume above the 1,800 index level.

“I don’t think tired bulls could be defeated on any count now from onward,” predicts a stock analyst giving the reasons for the post-budget and year-end sluggishness. “It is now the turn for the bears to watch the market rebound standing quiet on the sidelines.”

Bulls have more than one reasons in their fold to drive bears out of the market until they fill in the portfolio gaps here and there at the current levels.

The new national budget may still have some irritants to be removed but technically speaking it has given the needed leverage to the investors and how they interpret the fiscal measures will set the market trend.

However, the proceedings in the maiden session of the new fiscal show the finance minister’s message is well-understood by those who mean business sans speculative trading.

“Peace with India may still be inconclusive, local law and order situation may not be ideal in the backdrop of political uncertainty including doubts about the October elections, investors could play freely on the strength of the incentives for the capital market,” says a broker.

He predicts the market poised for a big turnaround as both institutional traders and general investors now hate to keep to the sidelines when the chances of capital gains are there.

All the leading shares ruling below their benchmark prices owing to late June sluggishness came in for active short-covering but there was no matching selling.

Prominent gainers were led by Reliance Weaving, Masood Textiles, Attock Cement, Century Papers, Ghani Glass, Javed Omer and Pakistan Oilfields, up by Rs.1.50 to 3.40.

Losers were led by Lever Brothers, Fateh Textiles, which fell by Rs.9 to 16.55 followed by Shafiq Textiles, Shell Pakistan, Tri-Pack Films, Pakistan Gum Chemical, Alico, Dewan Textiles and some others, falling by one rupee to Rs.2.25.

Trading volume rose to 65m shares from the previous 40m shares, as gainers topped losers by 127 to 114, with 56 shares holding on to the last levels.

Hub-Power was actively traded, up 40 paisa at Rs.23.60 on 24m shares, PTCL, higher 15 paisa at Rs.17.30 on 8m shares, PSO, up Rs.155 at 141.55 on 6m shares, National Bank, firm 55 paisa at Rs.21.05 on 5m shares, Nishat Mills, higher by Rs.1.50 at Rs.17.05 on 4m shares and Telecard, easy 12 paisa at Rs.12.40 on 3m shares.

Other actives were led by D.G. Khan Cement, up 60 paisa on 2.304m shares, WorldCall, higher 50 paisa on 1.940m shares, Engro Chemical, firm 80 paisa on 1.482m shares and ICI Pakistan, steady by 20 paisa on 1.060m shares.

FUTURE CONTRACTS: Barring ICI Pakistan and Engro Chemical, which showed fractional decline, all other forward shares recovered led by Nishat Mills and PSO, up Rs.1.50 and 1.35 at Rs.17.25 and 142.25 on 0.411 and 1.794m shares respectively.