KARACHI, Feb 12: The 100-share index of the Karachi Stock Exchange staged a snap recovery on Tuesday on strong dividend-linked buying in banking, cement and oil shares, triggered by reports of higher earnings, allaying analysts’ fears of pre-election imminent plunge.

Whether or not the pre-election technical rally that again pushed the KSE 100-share index well above its psychological barrier of 14,000 points at 14,096.91, up 211.95 points, adding Rs64 billion to the market capital, could be carried through the next couple of sessions is, however, anybody’s guess.

The free-float 30-share index also recovered 318.67 points at 16,974.49 points.

The MCB Bank, National Bank, Lucky Cement, Engro Chemical, OGDC, PTCL, Bank Al-Falah and all other index heavyweights led the rally and staged smart recoveries.

There were more than one rumours behind the recovery, but the chief factor was that tired bulls were not inclined to sit on the sidelines any more and covered short positions ahead of some important board meetings, notably of PSO, Kot Addu, Packages and some others. Higher cash dividend by HinoPak, bonus shares by Pakistan Refinery and JS group of companies on Tuesday gave a fresh boost to the market.“Only fools can miss the current lower levels despite the fact that the news from the election front was not that encouraging,” said analyst Ashraf Zakaria, adding “those who take risks ahead of tense elections did it.”

But if one goes by the market fundamentals, notably the attractively lower levels, most of the leading shares had reached the upper levels and are likely to be involved in the upcoming dividend flurry.

“It is not an illusion, but a reality built on higher earnings by the leading corporates during last year,” said a leading analyst Hasnain Asghar Ali, adding “cash dividend and bonus shares are expected to be well above the previous levels.”“No one can miss some of the positive ‘financial leaks’ about the profits and the current lower levels reached by most of the pivotals provided and an attractive bait for quick capital gains or the both,” says another analyst Ahsan Mehanti.

The top gainers were led by EFU Life and AKD Capital, up by Rs26 and Rs28.35 followed by Arif Habib Ltd, MCB Bank, Adamjee Insurance, National Refinery, Attock Petroleum, Shell Gas, HinoPak, Pak-Suzuki, BOC Pakistan, Murree Brewery, Shezan International, EFU General, Shell Pakistan, and JS & Co, which posted gains ranging from Rs7 to Rs22.

Rafhan Maize and Colgate Pakistan were leading among the losers, off by Rs131.20 and Rs35, respectively. Other prominent losers included Pakistan Services, IGI Insurance, Bata Pakistan, Nestle Pakistan, National Foods and JS Global, off by Rs5 to Rs23.Trading volume showed a sharp rise at 246 million shares from the previous 140 million shares as gainers forced a strong lead over losers at 225 to 111, with 34 shares holding on to the last levels.

Arif Habib Securities led the list of actives, up by Rs6.30 at Rs180.90 on 25 million shares, followed by Bank of Punjab, higher by Rs1.75 at Rs93.15 on 16 million shares, Lucky Cement, higher by Rs5.30 at Rs120.70 on 13 million shares, Bank Al-Falah, up Rs2.65 at Rs56.15 on nine million shares, National Bank, higher by Rs3.20 at Rs230.65 also on nine million shares, OGDC, firm by Rs1.50 at Rs120.75 on eight million shares and PTCL, higher by 90 paisa at Rs39 on seven million shares.

Other actives included Fauji Fertiliser Bin Qasim, higher by Rs1.15 at Rs42.85 on nine million shares, Engro Chemical, up Rs3.15 at Rs294 also on nine million shares and Arif Habib Bank, firm by 35 paisa at Rs28.40 on seven million shares.

FORWARD COUNTER: Lucky Cement led the list of actives on this counter, higher by Rs5.50 at Rs120.80 on higher exports, on five million shares, followed by Engro Chemical, up Rs4.50 at Rs294.90 on three million shares and MCB Bank, higher by Rs7.20 at Rs405.70 also on three million shares.Bank of Punjab followed them, firm by Rs1.95 at Rs93 on three million shares and National Bank, up by Rs3.40 at Rs231.80 also on three million shares.

DEFAULTER COMPANIES: Norrie Textiles again led the list of actives, easy by five paisa at Rs2.40 on 1.403 million shares, followed by Zeal Pak Cement, steady by five paisa at Rs4.40 on 0.613 million shares, Unity Modaraba, up 20 paisa at Rs1.55 on 0.510 million shares and Japan Power, unchanged at Rs7.20 on 0.412 million shares.

DIVIDEND: HinoPak Motors, cash final 240 per cent, Pakistan Refinery, interim bonus shares 16.66 per cent, JS Value Fund, interim cash 30 per cent, JS Investment, cash interim, 15 per cent and UTP Large Cap Fund, cash interim 10 per cent.