KARACHI, March 20: Stocks on Tuesday were back on the rails followed by active short-covering on the selected counters aided by one month’s extension in the implementation of Client Level Netting (CLN) regime on the future market in May contracts.However, the market reaction to the extension appears to be psychological as ground realities points to some other direction and the snap rally could falter halfway.

Despite the prevailing judicial crisis, the KSE 100-share index recovered a good part of the its overnight massive fall as short sellers covered positions at the lower levels in anticipation of SECP nod, brokers said.

After early rising by 233 points, it finally finished with a net gain of 190.06 points at 11,331.35 as compared to 11,141.29 a day earlier, while its junior 30-share index rose by 294.04 points at 14,139.42.

Leading base shares, notably National Bank, OGDC, Pakistan Petroleum, Bank AlFalah, and D.G.Khan Cement showed smart rallies amid active trading.

The perception that the CLN, which was to be implemented by the first of the next month, according to original SECP directive, is extended by a month and could give the needed time to brokerage houses and investors to adjust their forward positions in the ruling contracts.

“The KSE board played its trump card seeking extension in CLN for another month to pull the market out of the prevailing uncertainty and managed to do it,” a leading analyst Hasnain Asghar Ali said.

But Ahsan Mehanti, another analyst think the KSE request may provide a breathing space for the shaky investors but appears pretty difficult to sustain the run-up in the backdrop of legal battle.

Plus signs dominated the list under the lead of Nestle Pakistan and Wyeth Pakistan, up by Rs2 and Rs89.75, Arif Habib Securities, National Bank, Bata Pakistan, Adamjee Insurance, Pakistan Engineering, National Refinery, Pakistan Petroleum, Pakistan Oilfields, Siemens Pakistan and MCB, which posted gains ranging from Rs4.05 to Rs13.02.

Pakistan Services and Central Insurance were leading among the losers, off Rs5 and Rs5.55. Other fell modestly by Rs2 to Rs4.25, under the lead of Javedan Cement, Al-Ghazi Tractors, Colgate Pakistan, Packages Pakistan and IGI Insurance.

Trading volume showed a modest rise at 144m shares from the previous 137m shares as gainers topped losers by 194 to 121, with 39 shares holding on to the last levels.

Lucky Cement topped the list of actives, up Rs2.80 at Rs77.50 on 12m shares followed by Bank AlFalah, higher by Rs2.15 at Rs46 also on 12m shares, National Bank, up by Rs7.92 at Rs237.05 on 10m shares, OGDC, steady by Rs1.40 at Rs116.90 also on 10m shares, D.G.Khan Cement, higher by Rs3.20 at Rs87.35 on 8m shares, Pakistan Petroleum, up Rs4.80 at Rs247.80 on 5m shares and Kot Addu Power, higher by Rs1.55 at Rs57.95 on 4m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, steady by 25 paisa on 7m shares, WorldCall Telecom, easy five paisa on 6m shares, and J.S.Bank, lower 90 paisa also on 5m shares.

FORWARD COUNTER: Bank AlFalah was actively traded on the cleared list and was quoted higher by Rs2.20 at Rs46.60 on 10m shares, National Bank, higher by Rs7.95 at Rs238.45 on 9m shares, and D.G.Khan Cement up Rs3.10 at Rs87.40 on 7m shares.