KARACHI, Nov 29: Stocks on Friday staged a snap rally as bulls fought back and made active short-covering at the lower levels in most of the pivotals, halting the last three sessions’ market decline.

The MMA statement after the withdrawal of the MQM from the power arena indicating its support to Jamali government seems to be chief morale booster for the investors who returned to market as buyers rather than panicked sellers during the last three sessions.

But general investors kept to the sidelines awaiting final word from the analysts telling them “whether or not the rally is genuine or inspired”.

The KSE 100-share index recovered 47.73 points or 2.13 per cent at 2,285.87 as compared to previous 2,238.14, as leading base shares, PTCL, Hub-Power and PSO, which together hold a weightage of over 50 per cent were traded sharply higher and for good reasons too.

“We will make up the vote deficit in case of defections”, MMA leaders are on record of having assured to the prime minister “the meeting of PML-Q with MMA leaders has reinforced this perception, halting the market decline”, brokers said. The vote strength of the MMA is 67 in the National Assembly.

Energy shares, which has been under pressure over the last couple of sessions led the market advance under the lead of Shell Pakistan, Pakistan Refinery, Pakistan Oilfields, National Refinery and blue chips on other counters. The net rise in them was the order of Rs4.25 to Rs8.90, Shell Pakistan being on the top. PSO also recovered from the early lows.

It may be an elusive thinking that the MMA will support the Jamali-led coalition government without conditions but the assurance certainly filled in the gap created by the withdrawal of the MQM from the political chess.

Former finance minister and currently the advisor to the prime minister, Shaukat Aziz visit to the KSE on Dec 2, also restored investor confidence amid rumours that worst is already over.

Stock analysts are, however, not enthused by the weekend snap rally amid the prevailing mess on the political front and said “inspired rallies seldom face the test of hard facts”.

“We think the time is ripe for the market to respond its basic positive fundamentals”, they said “there are still many ifs and buts between the lip and the cup”.

A further correction of about 100 points in the coming sessions could add to its inherent strength but artificial dozes will not work and will deceive the small investor, some other said.

“Let the market find its own pragmatic sustainable level without any outside manoeuvring may work against its entire structure”, says a leading broker.

Leading losers were led by Blessed Textiles, Shell Gas, Aventis Pharma, Sarhad Cigarette and Unilever Pakistan, off Rs1.85 to Rs19.50.

Trading volume fell to 119m shares from the previous 179m shares as gainers forced a strong lead over the losers at 154 to 66, with 41 shares holding on to the last levels.

Hub-Power topped the list of most actives, up by 70 paisa at Rs28.60 on 33m shares, followed by PTCL, higher by 50 paisa at Rs22.35 on 17m shares, Sui Northern Gas, firm by 90 paisa at Rs18.25 also on 17m shares, PSO, higher by Rs3.10 at Rs176.35 on 11m shares and National Bank, higher one rupee at Rs25.05 on 7m shares.

Other actives were led by FFC-Jordan Fertilizer, steady by 40 paisa on 3m shares, Dewan Motors, higher by 60 paisa also on 3m shares, Fauji Fertilizer, up by Rs2 on 2.967m shares, Nishat Mills, up by 55 paisa on 2m shares and Adamjee Insurance, higher by 90 paisa also on 2m shares.

CLEARED LIST: PSO, which has received massive battering during the last three sessions came in for strong buying at the lower level and recovered Rs2.90 at Rs178.40 on 8m shares followed by Hub-Power, up by 65 paisa at Rs38.75 on 7m shares and PTCL, higher by 54 paisa at Rs20.05 on 4m shares.