KARACHI, April 25: Stocks were back on the rails and staged a strong snap recovery on Friday, allying fears of an extended bearish week, apparently on the strength of higher corporate earnings, notably from the Mansha group of companies, analysts said.

The market’s bullish mood was also well-reflected in the performance of Karachi Stock Exchange (KSE) index, which recovered a good part of last four sessions’ steep decline of about 400 points as institutional-led rally manifested itself in a big way at the lower levels, aided partly by reports of higher corporate earnings.

The KSE 100-share index recovered 129.84 points at 15,434.74, but ended below the session’s high of 15,447.42 as compared to 15,304.90 a day earlier.

The free float 30-share index on the other hand rose by 254.59 points at 18,646.75 points.

Leading base shares came in for strong support and ended higher under the lead of cement, bank and oil shares and blue chips on the other counters, including Engro Chemical, which resumed its upward drive.

But a leading analyst Ahsan Mehanti said higher corporate earnings by the Mansha group of companies, including interim dividend of 30 per cent by the MCB Bank boosted sympathetic buying on other blue chips.

The technical correction in a highly overbought market was a long due but leading bulls extended the run-up beyond mandated option.

Finally, it did come but not in the intensity as was widely speculated and that reflects the market’s inherent strength, analysts said.

The budget is about six weeks away, said a leading investor, adding, “why miss the quick capital gains that have now become a near possibility in the background of the market’s current fall.”

“The state of the economy may be bad, exemption on capital gains and capital value taxes may be withdrawn, but it is a speculation by now,” he said, adding, “but things appear certain that the government may not like to push the market in the reverse gear at this stage.”

“The weekend rally is generally considered a good omen for the market as it paves the way for its extension when the trading resumes next week alone on technical grounds,” another analyst Ashraf Zakaria said.

The interim earning reports, pouring in daily, both from leading companies as well as their weaker links, indicate higher profits, and reveal that perception of good dividend did not allow investors to sit on the sidelines and miss the capital gains, some others said.

Nestle Pakistan and AKD Capital were among the top gainers, up by Rs50 and Rs46.40, followed by Adamjee Insurance, Pakistan Reinsurance Co, Pakistan Tobacco, Thal Industries, Attock Refinery, Mari Gas, Indus Motors, Engro Chemical, Bata Pakistan, Murree Brewery, Unilever Pakistan, Ferozsons Lab, BOC Pakistan, Colgate Pakistan, and Rafhan Maize, which posted gains, ranging from Rs7.05 to Rs45.

Wyeth Pakistan and Fazal Textiles led the list of losers and fell by Rs110 and Rs15, respectively.

Other losses were modest, barring Atlas Insurance, Central Insurance, Atlas Honda, and Dawood Hercules, which fell by Rs5 to Rs15.

Traded volume rose to 260 million shares from the previous 238 million shares, but gainers and losers were about evenly matched at 162, with 39 shares holding on to the last levels.

DG Khan Cement topped the list of actives, higher by Rs2.90 at Rs112.90 on 21 million shares, followed by Bank Al-Falah, up by Rs2.10 at Rs56.50 on 20 million shares, JS Bank, steady by Rs1.05 at Rs23 on 17 million shares, Bank of Punjab, firm 85 paisa at Rs61.70 on 13 million shares, Nishat Mills, sharply higher by Rs6.10 at Rs128.10 on 11 million shares, Engro Chemical, higher by Rs12.25 at Rs351.25 on eight million shares, OGDC, firm 40 paisa at Rs138.70 also on eight million shares and Attock Refinery, up by Rs13.75 at Rs289.20 on seven million shares.

Other actives were led by Azgard Nine, higher by Rs4.20 at Rs90.05 on 11 million shares and Pervez Securities which rose by 50 paisa at Rs89.70 on ten million shares.

FORWARD COUNTER: Both settlements of Bank of Punjab came in for active support and rose by 30 and 98 paisa at Rs61.20 and Rs62.50 on nine million shares each for the matured April and the ruling May contracts, respectively. May contract of PTCL rose by 50 paisa at Rs48 while its April delivery fell by 75 paisa at Rs46.55 on six million shares.