KARACHi, June 1: Stocks were back on the rails on Wednesday as investors covered positions on the blue-chip counters at the lower levels under the lead of oil and fertiliser sectors amid an actively traded session.

The benchmark KSE 100-share index recovered a major portion of the last two sessions and was quoted higher by 140.91 points at 12,264.06, as leading base shares rose in unison on persistent support at the prevailing lower levels.

Active short-covering in the leading oil shares by the foreign investors, notably in the refinery sector was the chief inspiring force behind the powerful rally. Sharp rise in Attock, National, Pakistan Oilfields, OGDC, Attock Petroleum, Pakistan Petroleum and some others boosted the index to well above the 12,200 level.

It was a judicious blend of both local and foreign buying in an oversold market, said a stock analyst Ahsan Mehanti. Unlike previous sessions the rally this time was led by the blue-chip counter.

But analyst Hasnain Asghar Ali said a strong rumour about the deregulation of fuel prices in the federal budget appeared to be one of the chief market triggers, the change in the mode of collection of capital gains tax (CGT) reinforced the investor perception about an easy pre-budget going.

“The other contributory factor was rumours that the cash margin requirements may be cut and replaced with shares in the leverage market including deliverable futures encouraged investors to build long positions at the lower levels on the blue chip sectors,” he added.

Among the top gainers, Unilever Pakistan and National and Attock Refinery were leading, up by Rs49.46, Rs18.03 and Rs6.55, while losers were led by Nestle Pakistan and J.W.D Sugar, off Rs59.05 and Rs2.29.

Traded volume though fell modestly but maintained on the higher side at 118m shares as compared to 123m shares a day earlier bulk of which was again shared by the undervalued shares.

Gainers, however, topped losers by 173 to 94, with 83 shares holding on to the last levels.

The active list was again led by Fauji Cement (right) easy by four paisa at Rs0.10 on 15m shares followed by Inter-Steel, firm by 78 paisa at Rs14.84 on 10m shares, Fatima Fertiliser up 56 paisa at Rs13.46 on 9m shares, Byco Petroleum, up 75 paisa at Rs10.01 on 8m shares, JS & Co, steady by 48 paisa at Rs7.79 on 7m shares, Lotte Pakistan, steady by 10 paisa at Rs15.02 on 5m shares and Dewan Salman, lower by two paisa at Rs3 on 4m shares.

They were followed by Attock Refinery, higher by Rs6.55 on 4m shares, Fauji Fertiliser Bin Qasim, up 66 paisa at Rs43.49 on 3m shares and D.G. Khan Cement, higher by 75 paisa at Rs23.85 also on 3m shares.

FUTURE CONTRACTS:

D.G. Khan Cement led the list of actives on this counter, up 73 paisa at Rs23.94 on a large turnover of 1.027m shares, followed by Attock Refinery, higher by Rs6.57 at Rs138.13 on 0.537m shares and Pakistan Oilfields, higher by Rs6.83 at Rs342.02 on 0.489m shares.

Pakistan Petroleum, higher by Rs4.75 at Rs218.66 on 0.362m shares and Engro Corporation, higher by Rs3.25 at Rs198.94 on 0.298m shares.

DEFAULTER COMPANIES:

Invest Bank came in for active support and led the list of actives, up 15 paisa at Rs0.54 on 0.173m shares followed by Japan Power, easy by seven paisa at Rs1.23 on 0.117m shares and Dewan Auto, lower by 24 paisa at Rs1.22 on 85,601 shares.

Barring Ravi Textiles, which fell by four paisa at Re1 on 32,363 shares and Crescent Jute, easy by two paisa at Rs0.60 on 16,001 shares, others were fractionally traded amid light turnover.