KARACHI, May 12: Stocks staged a snap rally after early steep fall on Monday as leading shares came in for active short-covering at the lower levels, pushing the index modestly higher by 58 points at 14,286.61

The support was, however, highly selective and originated from some of the institutional and speculative traders but remained confined to a few pivotals, notably those, which ensure handsome capital gains at the current lows.

The opening was terribly weak on panic selling caused by fears of collapse of the coalition government after the failure of London talks between the PPP and the PML-N on the issue of reinstatement of judges, the tired bulls at last fought back in the backdrop of a protracted bear-run.

The free float 30-share index, on the other hand, rose by 141.40 points at 16,909.56 points but well below the session’s high on late selling.

The recovery was initiated by the leading shares of the Mansha Group of companies, including MCB Bank, Nishat Mills, Arif Habib Securities and leading oil shares, which analysts said, had already touched their lower levels and came in for technical support.

Earlier in the session, widespread panic was witnessed in the trading hall as fears of collapse of the coalition government in the centre and its impact on the economy, foreign investment and bourses, triggered nervous selling from all and sundry.

After having fallen by about 1,500 points or nine per cent during the last couple of sessions on persistent selling, the KSE 100-share index opened with 206 points off from the weekend close, a leading stock analyst Hasnain Asghar Ali said, but the mid-session witnessed the return of the bulls at the lower levels pushing the index to close modestly higher.

“But the near-political outlook is still uncertain as future line of action of the PML-N, whether or not to stay in the coalition, will be a crucial factor for a falling market,” he added.

But another leading analyst Ahsan Mehanti says the market seems to have already enough of the political maneuvering and bulls may have decided to go alone ignoring battle of wits.

“The market is now in a terribly oversold position on most of the blue chip counters and indications are that it may creep to its pre-reaction level in due course,” analyst Faisal A. Rajabali predicts, adding “There are some other consolidation forces who hate fresh market fall.”

No one could deny the fact that most of the economic indicators, including political at this time are bearish but the market’s in-built mechanism to meet such situations is still there and appears to be at work with the start of the new week, he added.

Although the broader market was still weak but not to the extent, to which it had been during the last weeks and revival of active short covering in most of the pivotals, having potential to rise, could sustain the technical rally during the coming sessions also.Leading gainers were led by Arif Habib Ltd and Al-Ghazi Tractors, up by Rs9.64 and Rs11, followed by Nishat Mills, Adamjee Insurance, Sazgar Engineering, Ghani Glass, Pakistan Engineering and Pakistan Refinery, which rose by Rs5.04 to Rs8.80.

EFU General and Siemen’s Pakistan were prominent among the losers, off Rs25.60 and Rs64.40, respectively. Other losses were mostly fractional barring Mari Gas, AKD Capital, National Foods, Dadex, Pakistan Reinsurance, Central Insurance, JS & Co and JS Global, which rose by Rs5.99 to Rs10.

Trading volume fell to 146m shares from the previous 181m shares as losers maintained a modest lead over the gainers at 156 to 139, with 30 shares holding on to the last levels.

Arif Habib Securities led the list of actives, up by Rs3.30 at Rs189 on 13m shares followed by Nishat Mills, higher by Rs5.42 at Rs113.92 on 9m shares, D.G. Khan Cement, firm by Rs2.71 at Rs113.92 on 7m shares, MCB Bank, higher by Rs5.80 at Rs360.80 on 6m shares, National Bank, higher by Rs1.90 at Rs218.65 also on 6m shares.

Bank Alfalah followed them, up 81 paisa at Rs54.26 on 6m shares, OGDC, up Rs1.25 at Rs131.65 on 5m shares, and Engro Chemical, higher by Rs3.99 at Rs323.99 on 4m shares, Norrie Textiles, easy by two paisa at Rs1.79 on 4m shares and JS Investment, higher by Rs2.50 at Rs115.50 also on 4m shares.

FORWARD COUNTER: MCB Bank came in for active short-covering at the lower levels and led the list of actives, up by Rs4.65 at Rs363.15 on 6m shares followed by Nishat Mills, sharply higher by Rs5.45 at Rs114.55 on 4m shares, and Engro Chemical, higher by Rs3.60 at Rs325.60 on 3m shares.