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KSE vaults 643 points

KARACHI — Pakistani stocks yesterday roared back to their pre-reaction level as investors covered positions at the attractively lower levels, pushing the KSE 100-share index higher by 643.04 points or 4.82 per cent at 13,996.42 and added Rs215.00 billion to the market capital.

Postponement of the national elections by seven weeks to February 18, foreign assistance in Benazir Bhutto’s murder probe and the relative calm in the law and order situation lured investors back in the market, analysts said.

The KSE 100-share index, which had fallen by 1,400 points or 10 per cent eroding Rs400.00 billion from the market capital in the last three sessions, about halved its loss just in one session and is expected to wipe out the other half within this week, they added.

Leading base shares, notably MCB, National Bank, OGDC, Pakistan Petroleum and Pakistan Oilfields on reports of a record rise to $100 per barrel and some others significantly contributed to the credible recovery in the share market as well as the index, they said.

“The snap recovery reflects that the basic market fundamentals are terribly bullish and no amount of negative external factor could keep it subdued for a longer period in the given situations,” said analyst Ahsan Mehanti.

The current tension caused between the contenders of power in the backdrop of Benazir Bhutto’s assassination will be defused in due course, leading to further improvement in the law and order situation, and this has lured tired bulls back in the arena, Ashraf Zakaria, another analyst said adding "the market rose in the same fashion as did it fell."

Leading gainers were led by Unilever Pakistan and Rafhan Pakistan, up by Rs115.00, while losses were mostly fractional, leading among them being Reliance Cotton lower by Rs2.00. Trading volume did not keep pace with the rising prices as leading sellers stayed away anticipating fresh increase in share values falling to 229 million shares from the previous 245 million shares. Gainers outpaced losers by 361 to 22, with 14 shares holding on to the last levels.