KARACHI, Feb 13: The KSE 100-share index on Friday staged a massive recovery as it soared by 4.20 per cent or 226.54 points at 5,625.90 on strong buying on the blue chip counters triggered by the perception of thaw in Indo-Pak ties after the positive probe on the Mumbai terrorist attacks.

But a leading analyst Ahsan Mehanti said the chief factor behind the market’s strong rebound was the removal of confusion by the SECP on the new accounting standards adding: “The impairment loss will be on equity values not on profit and loss.”

He said the opening was terribly sluggish but trading was boosted after the SECP clarification on the issue was announced though a bit late, which kept investors at their toes early in the week after the market was flooded with fresh buy-stops.

But some said the probe report also reflects in more than one ways that how much value investors attach to the normal ties between the two neighbours hoping it may prove a sustaining factor.

What seems to have encouraged leading bulls to go all out for the stocks of their choice was reports that the India has also welcomed the probe report, analyst Hasnain Asghar Ali said adding” “Which in his opinion could lead to normalisation of diplomatic relations after the prolonged tensions on the issue.”

The strong market recovery that too at the weekend session, which generally attracts off-loadings appears to be a marriage of convenience between the bulls and the bears ahead of the valentine day tomorrow, another analyst Ashraf Zakaria said and “hoped it must be sustained next week also.”

All other indexes, including KSE 30-shares, all shares and KMI 30-share index also rose by 283.26, 154.86 and 348.49 points at 5,681.89, 4,174.83, and 7,512.11, respectively.

The market recovery was led by the oil sector followed by fertiliser and other pivotals. Leading gainers were led by MCB Bank, National Refinery, PSO, Shell Pakistan, Attock Petroleum, Pakistan Oilfields, Dawood Hercules, Pakistan Petroleum, Sitara Chemical, Packages and some of the pharma MNCs, rising by Rs5.38 to 9.74.

Losers on the other hand were mostly fractional as investors were not inclined to sell hoping fresh rise in prices barring EFU Life and National Foods, which fell by Rs6.73 and 2.100, respectively.

Trading volume rose to 163m shares from the previous 90m shares as gainers forced a strong lead over the losers at 203 to 43, with 21 shares holding on the last levels.

The most active list was topped by Bank ALFalah, up 94 paisa at Rs13.15 on 22m shares followed by NIB Bank, up 61 paisa at 5.43 on 17m shares, JS & Co, higher by Rs1.53 at 32.19 on 11m, OGDC, up Rs2.44 at 51.38 on 10m shares, PTCL, firm by 73 paisa at 15.76 on 9m shares, Hub-Power, higher by 96 paisa at 16.08 on 8m shares, and Fauji Fertiliser Bin Qasim, steady by 96 paisa at 17.01 on 5m shares.

Pakistan Petroleum followed them, sharply higher by Rs6.96 at 157.02 on 4m shares, WorldCall Telecom, steady by 14 paisa at 2.72 on 4m shares, and Bank AlFalah, right shares up 90 paisa at 3 also on 4m shares.

FORWARD COUNTER: All the shares on this counter recovered in unison, MCB Bank, National Refinery, Pakistan Petroleum, Fauji Fertiliser, Habib Bank and several others, up by Rs4.30 to 6.95 but without any transaction.

DEFAULTER COS: Zeal Pak Cement again led the list of actives, up four paisa at 0.37 on 2.481m shares followed by Unity Modaraba, unchanged at Rs0.20 on 2.424m shares, and Japan Power, firm by two paisa at Rs1.72 on 70,500 shares.

Pangrio Sugar followed them, up 14 paisa at Rs2.87 on 42,000 shares and Invest Bank, higher by 57 paisa at Rs2.32 on 16,000 shares, while some others were modestly traded.

DIVIDEND: Biafo Industries, cash interim at the rate of 15 per cent, Tri-Star Polyester, interim, four per cent, United Growth and Income Funds and United Money Market Fund, bonus shares at the rate of 1.79 and 1.12 per cent, respectively.