KARACHI, Aug 8: The share market staged a snap but decisive recovery on Friday on active short-covering by equity market support fund and other investors on the relatively safe oil and banking counters, what analysts said may be a positive investor reaction to the coalition accord on president’s impeachment.

The Karachi Stock Exchange (KSE) 100-share index recovered another 202.16 points or 2.08 per cent at 9,909.45, still away from its base of 1,000 points, but the three 9s in a row appear to be a magic number as widely considered three 8s by the astrologers and how the index will behave by the next week is not clear if one goes by the number. The KSE 30-share also recovered 328.82 points at 11,162.04.

“The coalition partners accord on president’s impeachment appears to be a partial settling down of the dust on the political front but no one can precisely predict about the surviving side in the fight between the giants,” said a leading analyst Hasnain Asghar Ali.

Tabish Hassan, another leading stock analyst, attributed the snap rally that too at the weekend session, which generally attracts profit-selling, to strong rumours that the government has allowed listed companies to increase their investment in their shares out of their reserves by 25 to 50 per cent. He said those who had made massive investment in the Treasury Bills have also been asked to invest in shares after the maturity of T-bills.

“Along with market support fund, both these steps can give the market needed depth and restore investor confidence in the coming sessions,” he predicts.

However, led by the fund, general investors were not inclined to miss the rising market and rode the bandwagon in a bit hurry and allowed the market to finish weekend session on a positive note, he said.

Leading shares, notably National Bank, MCB Bank, OGDC, Pakistan Petroleum, Arif Habib Securities, Engro Chemical were in the forefront of rising shares which led the market advance.

“The thin volume reflects that judicious investors preferred to play safe as much water has still to flow down the bridge,” analyst Faisal A Rajabali said, adding: “the president has refused to resign and indicated to fight out the impeachment to clear his position.”

The weekend rally, therefore, could be deceptive and most of the investors kept to the sidelines rather than being lured by the current lower levels.

“Indications are that the market will follow the undercurrent of political news and their perceptions how the future wind will blow before making fresh commitments even on the blue chip counters.”

Shell Pakistan and Siemens Pakistan led the leading gainers, up by Rs16.80 and Rs56, followed by JS Global, Nestle Pakistan, Shezan International, Pakistan Oilfields, MCB Bank, PSO, Attock Petroleum, Mari Gas, Pakistan Petroleum, Indus Motors, Sitara Chemicals, Tri-Pack Films, Dawood Hercules, and JS & Co, which posted gains, ranging from Rs7 to Rs14.23.

Pakistan Services and EFU Life fell by Rs25.65 and Rs10, while Arif Habib Ltd, Attock Refinery, Al-Ghazi Tractors, New Jubilee Insurance, and EFU General followed them, off by Rs5.02 to Rs9.06. Trading volume fell to 89m shares from the previous 120m shares but gainers held a strong lead over the losers at 178 to 81, with 15 shares holding on to the last levels.

Arif Habib Securities led the list of actives, up by Rs4.75 at Rs118.75 on 8m shares followed by National Bank, higher by Rs5.17 at Rs108.67 on 4m shares, OGDC, steady by 95 paisa at Rs107.15 also on 4m shares, Engro Chemical, sharply higher by Rs3.15 at Rs187.50 on 3m shares, Pakistan Petroleum, sharply higher by Rs8.60 at Rs218.10 also on 3m shares and Bank Alfalah, up by Rs1.73 at Rs36.48 also on 3m shares.

They were followed by NIB Bank, steady by 27 paisa at Rs9.03 on 5m shares, Zeal Pak Cement, lower by seven paisa at Rs1.55 also on 5m shares, D G Khan Cement, higher by Rs2.29 at Rs48.09 on 4m shares and Nishat Mills, higher by Rs2.70 at Rs56.85 on 3m shares.

FORWARD COUNTER: Descon Oxychem led the list of actives, up 46 paisa at Rs11.91 on 2m shares, followed by OGDC, higher by 84 paisa at Rs107.99 also on 2m shares, Arif Habib Securities, higher by Rs5 at Rs119.

Pakistan Petroleum followed them, higher by Rs9.30 at Rs218.80 on 2m shares and Engro Chemical, up Rs3.60 on 1m shares.

DEFAULTER COs: Activity on this counter was slow owing partly to weekend considerations and partly to return of bull-run on the ready counter. Norrie Textiles was the only exception, which came in for active buying and rose by three paisa at Rs1.59 on 0.505m shares.

DIVIDEND: Al-Meezan Islamic Fund, cash Rs10 per unit, Al-Meezan Income Fund, cash Rs1.35 per unit and Al-Meezan Balanced Fund, 10 per cent.