KARACHI, April 14: Stocks on Thursday finished with an extended gain on active fresh short-covering in most of the low-priced second-tier shares amid hopes of capital appreciation but with lesser chances of heavy losses. The KSE 100-share index recovered another 79.22 points to stay above the level of 7,200. The sentiment in part was also influenced by reports of an interim cash dividend of Rs3.50 per share or 35 per cent by newly-listed Kot Addu Power Company (Kapco).

But the broader market ruled weak under the lead of energy giants, signalling that investors are rolling their positions from the overvalued shares to the low-priced ones where the chances of bigger losses are minimum and capital appreciation are much higher.

After having fluctuated widely either-way initially, the KSE 100-share index finally managed to finish with an extended gain of 79.22 points at 7,202.84 as compared to 7,123.62 a day earlier.

The interesting feature of the day’s trading was that the index scored a good gain sans the heavyweights, including PTCL, PSO and Pakistan Petroleum, which together hold a weightage of 50 per cent in it.

“It is a significant development in the market parlance, indicating that small investors are planning to recover in part massive losses suffered during the last about three weeks bit by bit,” says a leading broker, adding it is a good strategy.

Opinions are still divided over the future direction of the market in the backdrop of poor performance by market’s trend setters as trapped investors are trying to get out of them to avert fresh losses than clinging to them, hoping against hopes.

But some others claim the current levels are attractive enough for any future gainful investment in the share business and judicious pickup of promising stocks, which are still many including low-priced ones that could ensure a fair return on investment.

“Although there is a talk of realistic index level between 6,000 and 7,000, it has already shed much of its overweight and those stocks keeping it in a good shape have the potential of capital appreciation,” says an analyst.

Arif Habib Securities and Unilever Pakistan, which posted fresh gains of Rs23 to Rs25, were leading among the gainers, while losers were led by Treet Corporation and Artistic Denim, off Rs9.10 to Rs11, with other gains and losses being modest.

Trading volume suffered a modest fall at 279m shares from the previous 318m shares but gainers maintained a fair lead over losers at 163 to 113, with 43 shares holding on to the last

levels.

PTCL again topped the list of most actives, amid sharp either-way movement, lower 15 paisa at Rs60 on 65m shares, Fauji Fertilizer Bin Qasim, up Rs2.15 at Rs31.35 on 41m shares, DG Khan Cement, higher by Rs1.60 at Rs65.60 on 33m shares, Pakistan Oilfields, up Rs21.15 at Rs303.80 on 28m shares, Bank of Punjab, higher by Rs3.50 at Rs81.90 on 14m shares, PSO, off Rs4 at Rs389 on 13m shares, Pakistan Petroleum, off Rs4 at Rs182 on 9m shares.

Other actives were led by Pak PTA, lower 10 paisa on 15m shares, Sui Northern Gas, up Rs2.25 on 6m shares, Fauji Cement, steady five paisa on 4m shares.

FORWARD COUNTER: PTCL was again actively traded, lower 30 paisa at Rs60.60 on 9m shares followed by KOT Addu Company, up Rs1.10 at Rs53.50 on 8m shares, Fauji Fertilizer Bib Qasim, higher by Rs2.20 at Rs31.80 also on 8m shares, PPL, off Rs5.40 at Rs182.60 on 6m shares.

DEFAULTER COS: Barring Standard-Crescent Bank, which came in for active support and rose Rs1.10 at Rs17,40 on 0.161m shares, all others were fractionally traded amid light trading.

But on the other hand Pakistan Oilfields maintained its upward drive and rose by Rs21.30 at Rs305.55 on 5m shares and some others also followed it with light offtake.

DIVIDEND: National Equities, cash at the rate of 10 per cent; Natover Lease and Refinance, bonus 10 per cent, right shares 57 per cent and preference shares 476 per cent.