KARACHI, Nov 25: Stocks on Monday shrugged off the previous hesitancy as investors were back in the market and covered positions at the lower levels aided by the revival of financial support in selected shares. The KSE 100-share index rose by 10.45 points at 2,356.79.

Reports that the newly-elected prime minister has vowed to follow the economic policies of the previous government also triggered stray covering purchases on the blue chip counters.

The low volumes reflect that investors still may have some reservations about the coming events on the political front and have, in unison, decided to play safe until signs of a viable government are visible.

The KSE 100-share index managed to recover the losses suffered during the last two sessions and was up 10.45 points at 2,356.79 but the covering operations lacked aggressiveness associated with a bull market.

“The perception that the new government is weak because of its vote count, enjoying a simple majority as compared to strong opposition haunts investors”, broker said adding “defection of a single member could mean anything to the entire system built-up after a lot of manoeuvring”.

However, the general thinking is that all is not that bad with the transfer of power and new cabinet in place, it may not be prudent on the part of any investor to jump to hasty conclusions at this formative stage.

“The market may fall further from the current high levels on technical grounds alone”, some analysts predict “but the possibility of a major shakeout appears remote despite prevailing tension in the city and war-like postures between the two factions of the MQM after the end of “no-go areas.”

Foreign investors as well as leading portfolio investors who were a bit shaky about the policies of the new government are now optimistic about the future market outlook and covered positions rather than indulging in fresh selling.

Some analysts said the post-election political situation may not be that ideal but things are expected to settle down by the next couple of weeks and that will give an instant boost to stock trading.

“The sharp cut of 1.5 per cent to 7.5 per cent by the central bank in discount rate and the relative weakness of the dollar on the money market ensure a steady inflow of huge funds in shares in due course”, they added.

Energy shares remained in strong demand followed by reports of higher earnings by several blue chips on other counters. PIA also came in for active support as a belated reaction to reports of expansion in its fleet after inducting half a dozen new passenger planes.

Major gainers were led by National Refinery, Pakistan Refinery, Shell Gas, Wyeth Pakistan and Shell Pakistan leading among the top gainers, up Rs5.80 to Rs15, the largest rise of Rs15 being in Shell Pakistan, which has been under pressure for the last couple of sessions. Kohat Cement, Bannu Woollen, General Tyre, Fateh Textiles and Grays of Cambridge topped the losers, off by Rs1.55 to Rs5. Trading volume remained light at 128.140m shares as compared to 117m shares at the last weekend but gainers held a modest lead over the losers at 128 to 125, with 65 shares holding on to the last levels.

Hub-Power led the list of actives, up by 25 paisa at Rs28.85 on 36m shares, followed by PTCL, unchanged at Rs22.60 on 13m shares, ICI Pakistan, up by 15 paisa at Rs47.90 on 8m shares, Dewan Salman, higher by Rs1.10 at Rs11.15 on 7m shares, PIAC “A”, up by 70 paisa at Rs10.45 also on 7m shares, Adamjee Insurance, easy 55 paisa at Rs48.05 on 5m shares and PSO, lower by 55 paisa at Rs191.10 also on 5m shares.

Other actives were led by Pak PTA, firm by 10 paisa on 5m shares, Sui Northern Gas, lower 30 paisa on 4m shares, and Pak-Suzuki Motors, sharply higher by Rs2.20 on active follow-up support followed by reports of higher interim earnings on 3m shares.

FORWARD COUNTER: Speculative issues on the forward counter showed easy trend as out of 10 actives, six shares fell, while four rose, with prices of the two remaining pegged at the previous close.

The notable feature was trading also commenced in the December settlements side by side the ruling November contracts.

Barring PSO, which managed to finish higher by Rs1.15 at Rs193.15, some others fell under the lead of Engro Chemical, MCB and PTCL, falling by Rs1.36, Rs1.90 and Rs2.32 respectively at Rs73.14, Rs32.30 and Rs20.28 respectively.

Hub-Power came in for active support and rose by 22 paisa at Rs28.87 on 11m shares followed by PSO, off 60 paisa at Rs191.40 on 3m shares and PTCL, up nine paisa at Rs22.69 on 3m shares.

Sui Northern, fell by 35 paisa at Rs18.45 on 0.794m shares, while ICI Pakistan, rose by 15 paisa at Rs48 on 0.717m shares.

DEFAULTER COMPANIES: For the third session in a row, Pangrio Sugar again came in for active support at previous rate of Re1 on 32,000 shares followed by Metropolitan Steel, off 95 paisa at Rs7.50 on 27,500 shares and National Modaraba, unchanged at 0.60 on 2,000 shares.