KARACHI, Jan 30: Stocks on Thursday attracted active short-covering at the lower levels and finished partially recovered but analysts said the rally is too feeble to be sustained in the absence of strong institutional support. The KSE 100-share index was up 22.01 points at 2,649.06.

But some others claim the rebound is a “belated reaction to good final dividend announcements by both the leading fertilizer giants, Fauji Fertilizer and Engro Chemicals is technically viable and could lead the market’s upward journey to its pre-reaction levels.”

Unilever Pakistan’s final payout for the financial year ended Dec 31, 2002 of 160 per cent, making the total to 276 per cent as its management has already paid an interim of 116 per cent also proved a supporting factor.

Together with the final, Fauji total cash dividend rises to 90 per cent, while that of Engro to 75 per cent cash plus 10 per cent bonus shares. Along with the leading energy shares, they too attracted strong buying at the recent lower levels, they added.

The KSE 100-share index after having passed through highly erratic movements finally managed to finish around 2,649.06 points, up 22.01 points but volume figure failed to expand to the daily average level.

Although badla rates have fallen to normal levels, investors are not inclined to go beyond their exposure limits after the warning of official action by the Securities and Exchange Commission against those who do not abide by the conditions laid down by it.

Trading activity, therefore, remained relatively insipid as investors abide by the rules as is reflected by light turnover for the second session in a row.

Leading brokers said bulls are in two minds for the last couple of days and could not precisely decide whether or not to continue their bull-run as warranted by the lower levels.

The threat of an immediate US attack on Iraq is allayed as president Bush has given more time to UN inspectors probing mass destruction weapons in Iraq, local tension in the backdrop of ties with India is working against the sentiment.

Energy shares led the market advance under the lead of Shell Pakistan, PSO, Pakistan Oilfields, Siemens Pakistan and some other blue chips on the other counters.

Prominent gainers were led by Javed Omer, Nestle MilkPak, PSO, Siemens Pakistan and Shell Pakistan, up by Rs4.95 to Rs28, the largest rise being in Shell Pakistan. They were followed by Usman Textiles, Attock Refinery, Crescent Steel, Ferozsons Lab, ICI Pakistan and Century Papers, higher by Rs1.90 to Rs4.95.

Losers included Aventis Pharma, BOC Pakistan, National Refinery, Dawood Hercules, Sapphire Fibres, Bata Pakistan, 13th ICP and Grays of Cambridge, off Rs1.85 to Rs10.

Trading volume showed a modest increase at 251m shares from the previous 214m shares as gainers forced a strong lead over the losers at 179 to 113, with 51 shares holding on to the last levels.

Hub-Power again led the list of actives, up 20 paisa at Rs36.50 on 73m shares followed by PTCL, unchanged at Rs23.80 on 42m shares, PSO, higher by Rs6.35 at Rs201 on 31m shares, Sui Northern Gas, up 55 paisa at Rs23.30 on 20m shares and FFC-Jordan Fertilizer, lower 35 paisa at Rs11.85 on 14m shares.

Other actives were led by ICI Pakistan, higher by Rs1.90 on 12m shares, Engro Chemical, up Rs1.10 on 9m shares, Pak PTA, firm by 25 paisa on 7m shares, Pakistan Oilfields, higher by Rs3.50 also on 7m shares and Fauji Fertilizer, up Rs1.55 on 7m shares.

FORWARD COUNTER: Speculative issues on the forward counter also followed the lead of their counterparts in the ready section and generally ended recovered on active short-covering. PSO was leading among the gainers, up Rs5.50 at Rs200.50 on 3m shares followed by Fauji Fertilizer and ICI Pakistan, which rose by Rs1.50 to Rs1.60 at Rs79 and Rs54.50 amid active trading.