KARACHI, June 20: The post-budget lull on the stock market was broken on Thursday as investors resumed covering operations at the lower levels aided by perceptions of a sustained bull-run. The KSE index recovered 28 points at 1,788.47.

The post-budget rally manifested itself on selected counters with a bang, enabling low-priced among them to breach through their circuit breakers under the lead of PSO, which rose by Rs3.95 at Rs142.90 on the forward counter.

The low volume reflects that bears stood on the sidelines and did not sell amid a loud whispering of an imminent price flare-up, although the support was broad-based led by the institutional traders.

The KSE 100-share index recovered 28.24 points or 1.60 per cent at 1,788.47, signalling that it could stabilize above the psychological barrier of 1,800 possibly during the next two sessions.

“It was perhaps a belated post-budget reaction to corporate reliefs,” says a leading stock analyst, adding “though the price appreciation does not match the incentives and duty exemptions in the national budget.”

Budget experts of both the financial institutions and the brokerage houses take a couple of days to go through, in details, the fiscal measures and taxation and relief proposals and their likely impact on the share portfolios before making post-budget buying.

However, the reaction was not that aggressive perhaps because of military standoff on the borders but indications are that the budget message is clear and has judiciously been brought home.

“With forex reserves well above $6bn mark, a record remittances of $2.25bn, clear signs of easing of border situation and the recent lower levels provide an attractive bait for any prospective investor,” a leading stock analyst predicts while pointing to the future market outlook, adding “only fools could miss such an ideal opportunity to realize capital gains.”

On the corporate front, financial results of some leading companies, including Hub-Power, are due that could well be an added bonus for those who are willing to take risks.

The market advance was led by active short-covering in PSO, Hub-Power and PTCL, which took the entire market along with them in the plus column after three post-budget terribly lean sessions.

Major gainers were led by PSO, Packages and Shell Pakistan, which rose by Rs4.25 to Rs7 followed by Tri-Pack Films and Pak Reinsurance, up by Rs3.15 and Rs15, respectively. Rafhan Maize Products, Mari Gas, Dawood Cotton, IGI Insurance, Gul Ahmed Textiles, Kohat Cement and some others followed them, rising by Rs1.75 to Rs3.

Losers were led by Treet Corporation, Millat Tractors, Abbott Lab, Dewan Textiles, Shafiq Textiles, Sitara Chemical and Lever Brothers, off Rs1.15 to Rs4 on stray selling for replacement buying.

Traded volume rose to 104m shares from the previous 37m shares as gainers forced a strong lead over the losers at 116 to 79, with 50 holding on to the last levels.

Hub-Power again led the list of actives, up 55 paisa at Rs23.55 on 35m shares followed by PTCL, higher 30 paisa at Rs17.60 on 25m shares, PSO, sharply higher by Rs4.25 at Rs142.85 on 11m shares, Unity Modaraba, firm by 15 paisa at Rs0.85 on 5m shares and National Bank, higher 35 paisa at Rs19.70 also on 5m shares.

Other actives included Faysal Bank, up 35 paisa on 3m shares, Telecard, firm by 15 paisa on 2.222m shares, Engro Chemical, up 75 paisa on 2.025m shares, KESC, firm by five paisa on 1.442m shares and ICI Pakistan, up 40 paisa on 1.379m shares.

FUTURE CONTRACTS: Speculative issues on the forward counters also showed a broad recovery under the lead of PSO, which recovered Rs3.95 at Rs142.90 on 4.729m shares.

All others also rose under the lead of Hub-Power, up 55 paisa at Rs23.65 on 7.610m shares and PTCL, higher 30 paisa at Rs17.65 on 3.335m shares.

DEFAULTER COMPANIES: Mixed trend was seen on this counter where Crescent Board, Chenab Textiles and Pakistan Fisheries posted gains ranging from 15 paisa to 65 paisa, while Allied Motors fell by 40 paisa at Rs8.60 on 3,000 shares, Kausar Paints, lower 20 paisa at Rs1.30 on 2,000 shares and Amin Fabrics, easy 25 paisa at Rs4.75 on 1,000 shares.