KARACHI, Jan 19: Stocks on Thursday recovered from early lows as investors covered positions at the lower levels on selected counters under the lead of cement and some bank shares. But the weakness of leading base shares, notably OGDC and National Bank, which weighed heavily against the underlying sentiment as well as KSE 100-share index, ending with clipped gain. The broader market performed well as a substantial part of support shifted to it.

“It was essentially an extended technical correction from the late Wednesday’s selling, but I don’t believe that the current run-up is overdone,” predicts a leading broker.

However, KSE 100-share index’s highly volatile movements reflects that the technical correction may be extended on the weekend session also as some of the leading shares, which have rose beyond their technical mandate, still need correction.

After falling by 76 points earlier in the session, the index managed to finish with fresh modest rise of 24.69 points at 10,259.86 as compared to the previous 10,235.17 on Wednesday. It touched the highest and the lowest of the day at 10,289.42 and 10,161.70, respectively.

“Being in a highly overbought position, the index could move further lower but there is a remote possibility of last March’s crash as the background news are now more positive, including lower leverage positions on the forward counter,” brokers said.

Analysts said some of the leading shares, both on the bank and cement counters, had already risen beyond anybody’s guess and apparently not backed by dividend yields and might go for further correction having a negative impact both on the index and price potential.

“All have touched their danger zones and could move either-way amid alternate bouts of buying and selling in the coming sessions,” they said. “But lower levels reached by them in the process could attract renewed buying both from general investors and financial institutions.”

Leading gainers were led by Unilever Pakistan and Wyeth Pakistan, up Rs87 and Rs111.25, respectively, owing to shortage of floating stocks. Other leading gainers included Atlas Autos, Pakistan Services, IGI Insurance, National Refinery, Suzuki Motors, Dawood Hercules, Colgate Pakistan, Gillette Pakistan, Treet Corporation, Arif Habib Securities and Nestle Pakistan, which posted gains ranging from Rs10 to Rs25.

Prominent losers were led by Fazal Textiles and Shaheen Insurance, off Rs4 and Rs5.25, respectively, followed by MCB, Central Insurance, Artistic Denim, PSO, Pakistan Oilfields and Ghani Glass, which suffered fall ranging from Rs3 to Rs3.85.

Trading volume further shrank to 500m shares from the previous 529m shares but was on the higher side for the last several months, as gainers managed to hold a strong lead over losers at 219 to 169, with 37 shares holding on to the last levels.

DG Khan Cement led the list of actives, up Rs1.90 at Rs120.85 on 56m shares, followed by Fauji Cement, higher by Rs1.20 at Rs25.30 on 52m shares, Bank of Punjab, lower 30 paisa at Rs118.25 on 43m shares, Lucky Cement, up Rs1.75 at Rs102.35 on 39m shares, Nishat Mills, higher by Rs2.65 at Rs125.15 on 20m shares, OGDC, off Rs1.40 at Rs124.30 on 17m shares, and National Bank, lower Rs2.05 at Rs229.30 on 16m shares.

Other actives included Bank Alfalah, higher by Rs2.95 on 16m shares, followed by Fauji Fertilizer, lower 15 paisa on 15m shares and Maple Leaf Cement, firm by 70 paisa on 13m shares.

FORWARD COUNTER: Lucky Cement was actively traded, up Rs1.30 at Rs102.30 on 18m shares, followed by Bank of Punjab, lower 50 paisa at Rs118.65 on 14m shares, and DG Khan Cement, up Rs2.20 at 121.35 on 11m shares.