KARACHI, March 6: Stocks on Thursday extended the overnight recovery boosted by a record cut in T-bill yield rates and above market expectations interim dividend by Hub-Power.

In Wednesday’s T-bill auction, the yield rates fell from the previous high level of 3.1 per cent to 2.1 per cent, which analysts believe could cause a massive outflow of funds to the share business because of lower yield factors further boosting the underlying sentiment.

But the positive impact of the higher interim Hub-Power dividend of 33 per cent has already been digested by the market as was reflected by a modest fall of 35 paisa in its share price on profit-selling.

The KSE 100-share index posted a fresh modest rise of 9.15 points at 2,479.14 as Hub-Power aided short-covering spread to other base shares. But the buying support lacked the aggressiveness associated with a bull market.

“The Wednesday’s uproar in the National Assembly by the opposition over making the LFO as part of the 1973 Constitution has sent a strong message in the right quarters that sailing on the political front may not be that smooth”, brokers fear.

The terribly lower volume equivalent to single session tally of some of the most active scrips reflects that this perception is shared by all those who have a stake in the share business.

“In Pakistan’s political history, the house has never been that obedient as originally visualized by planners”, analysts said “the strong opposition as the current one could have a bigger say in the national issues as being thought by the power elite”.

That are some of the future fears of investors and they think twice before going beyond their sustainable holding capacity and financial limits despite predictions that the coming corporate announcements could trigger another buying euphoria.

And fears of Iraq war are there, which if waged could upset even the strong economies not speak about the weaker ones as the oil supplies will be at a stake.

Advancing shares trailed behind the losing ones but leading among them managed to finish with good gains under the lead of Attock Refinery, Spencer & Co, Shell Pakistan, Unilever Pakistan and Pakistan Reinsurance Co, up by Rs3.50 to Rs13.85.

Other good gainers were led by Salman Noman, Pakistan Oilfields, Honda Atlas, Pak-Suzuki Motors, Singer Pakistan, Engro Chemical, Packages, Ismail Industries and National Foods, up by Rs1.25 to Rs3.

Losers were led by some inactive shares, notably Shezan International, Atlas Honda, Al-Ghazi Tractors, Lakson Tobacco and Siemens Pakistan, off Rs1.80 to Rs3. They were followed by Al-Mal Securities, Javed Omer, Pakistan Refinery and some others, off one rupee to Rs1.75.

Trading volume fell to 113m shares from the previous 120m shares as losers held a modest lead over the gainers at 117 to 113, with 59 shares holding on to the last levels.

Hub-Power was again actively traded, off 35 paisa at Rs35.50 on 35m shares followed by PTCL, higher by 35 paisa at Rs21.40 on 19m shares, PSO, unchanged at Rs196.25 on 18m shares, Pakistan Oilfields up Rs2 at Rs171 on 5m shares, Bosicor Pakistan, a newly set up oil refinery, higher 35 paisa also on 5m shares, Sui Northern Gas, steady 15 paisa at Rs21.60 and Engro Chemical, higher by Rs1.50 at Rs89.20 on 5m shares each.

Other actives included Pak PTA, firm by 10 paisa on 3m shares, Telecard, easy five paisa on 2.447m shares and FFC-Jordan Fertilizer, unchanged on 2m shares.

FORWARD COUNTER: Speculative issues on the forward counter on the other hand ruled mixed as both PSO and Hub-Power came in for active selling and fell by five and 35 paisa at Rs196.20 and Rs35.55 on 8m and 7.434m shares respectively.