KARACHI, March 26: Stocks on Wednesday recovered from the overnight lows boosted by the waiver on 25 per cent proposed cash margin under the new CFS Mk-2, share trading rules to be effective from April 7.

Some positive developments on the political front, notably oath-taking of the new prime minister and perception of smooth transfer of power to the coalition government was said to be another supporting factor behind the rally.

The market’s upbeat mood was also well reflected in the KSE 100-share index, which finished with a gain of 76.10 points at 15,198.86 after having touched the session’s high of 15,262.88. The free float 30-share index on the other hand netted a bigger gain of 142.86 points at 18,587.69.

Some of the leading oil and bank shares, notably Pakistan Oilfields, Pakistan Petroleum and MCB followed by cement contributed to the upturn in the index.

After uncapping the current CFS ceiling of Rs55 billion, investors are allowed to have as much liquidity as they need up to Rs85 billion to inject in the share business but beyond it they have to deposit cash margin at the rate of 10 per cent, said a leading analyst Hasnain Asghar Ali, adding, “but the CFS cap on the leverage traders could take its toll in the coming weeks.”

But the market’s future trend will essentially be guided by a relative calm on the political front and economic and financial policies of the new central government, he predicts.

“The market is expected to get a new outlook as far as the trading pattern are concerned after April 7, as leading base shares, notably those under its ambit could significantly add to the current index level,” analyst Ahsan Mehanti predicts. He said the oath-taking of the new prime minister was another supporting factor leading to smooth transfer of power in due course.

Investors and brokerage houses have some reservations on the new proposals by the SECP to solve the liquidity problems of investors, including 25 per cent cash deposits to avert any possible default but the issue was amicably solved in a meeting on Tuesday between the KSE and the SECP high-ups.

Among the gainers, JS & Co and Rafhan Maize Products were leading, up by Rs31.50 and 49.90, followed by MCB Bank, Fazal Textiles, National Foods, Habib Bank, Arif Habib Ltd, Pakistan Engineering, Pakistan Resource Co, EFU Life, and AKD Capital, which posted gains ranging from Rs5.95 to 27.50.

Prominent losers were led by Colgate Pakistan and EFU General Insurance, off by Rs30.50 and 31.90, respectively. Others fell modestly under the lead of Lakson Tobacco, Attock Petroleum, KSAB Pumps, Mitchell’s Farms, Unilever Pakistan, and HinoPak Motors, off by Rs6.05 to 21.70.

Trading volume showed a

modest rise at 220m shares from the previous 216m shares as gainers held a fair lead over the losers at 175 to 148, with 40 shares holding on to the last levels .

JS Bank led the list of actives, up one rupee at Rs21 on 18m shares followed by Lucky Cement, firm by 70 paisa at Rs138.90 on 16m shares, D.G. Khan Cement, up Rs1.60 at Rs111.65 on 12m shares, Pakistan Oilfields, sharply higher by Rs6.80 at Rs376.40 also on 12m shares, OGDC, lower 80 paisa at Rs134 on 11m shares, PTCL, up 70 paisa at Rs45.75 on 9m shares, and Pakistan Petroleum, higher by Rs3.95 at Rs263.70 on 7m shares.

Other actives included Bank of Punjab, up 70 paisa at Rs67.65 on 10m shares, Azgard Nine, steady by 50 paisa at Rs62.50 on 7m shares and Fauji Fertiliser Bin Qasim, up by 55 paisa at Rs46.20 on 6m shares.

FORWARD COUNTER: Bank of Punjab led the list of actives on this counter, up 74 paisa at Rs68.34 on 6m shares followed by JS Bank, higher by one rupee at Rs21.25 on 4m shares, MCB Bank, higher by Rs1.18 at Rs406.05 on 3m shares and OGDC, lower by Rs1.30 at Rs133 also on 3m shares.