KARACHI, Dec21: Stocks on Friday finished with an extended gain boosted by China’s support to Pakistan’s external policies and signing of half a dozen agreements, which could lead to a sustained economic growth in the years to come. The KSE 100-share index breached through the barrier of 1,400 points at 1,404.

“The market needed some instant morale-booster in the final stages of Afghan war and that came in the form of new economic chapter with China,” says a leading KSE member.

Indian war euphoria was there and took its toll but as the positive news far out-weighed the negative ones, the investor mood at the KSE remained terribly bullish.

The market’s buoyant mood was also well-reflected in the KSE 100-share index, breaching the psychological barrier of 1,400 points at 1,403.97, up 18.65 points as all the leading base shares recovered smartly.

Its rise was sustained and progressive and not the outcome of a bull-run, which could well mean that it is sustainable and further rally could be built up on it taking it now to a base level as the developing economic scenario is unfolding itself, stock analysts predict.

“The signing of half a dozen of trade and financial agreements with China during the visit of President Musharraf appears to have given the needed push to the market as shaky investors were back in the rings and made extensive buying,” floor brokers said.

Other supporting bullish factors were, among others, fresh Asian Development Bank loan, steep rise in remittances to about $800, a setback to hundi business and strong rupee, they claim.

The index should have risen further but tension on the borders and reports of a massive troop build-up by India along the international borders in Rajasthan worried investors, limiting their investment needs, they said.

“The floodgate of foreign aid might not haven been opened but Chinese goodwill gesture could pave the way for it in the coming months as other countries may follow it both in terms of trade and industrial joint ventures,” most analyst believe.

Textile shares led the market advance on active support aided apparently by the perception of reopening of the vast Afghan market after the end of war. All the leading shares rose in unison, major gainers among them being Bhanero Textiles and Fazal Textiles, which rose by Rs.2.90 and 4.50.

Other leading gainers included PSO and Shell Pakistan, which recovered overnight losses, up by Rs.3.75 and 3.35, followed by Al-Ghazi Tractors, ICI Pakistan, Trust Modaraba, Jahangir Siddiqui and Co, Legler Nafees, PICIC, Inter-Asia Leasing 8th and 10th ICPs and several others, rising by one rupee to 1.50.

Losers were led by Paramount Spinning, Ideal Spinning, Zahidjee Textiles, and Attock Refinery, off Rs.1.05 to 1.90, while all other losses were fractional.

Plus signs were again strewn all over the list, with leading shares finishing with smart rallies under the lead of PSO and ICI Pakistan, which at one stage failed to find sellers even at the rising prices.

Trading volume rose to 79m shares as advancing shares forced a strong lead over the losers at 104 to 39, with 32 holding on to the last levels.

Hub-Power again topped the list of most actives, up 20 paisa at Rs.18.40 on 34m shares, followed by PTCL, up 15 paisa at Rs.16.15 on 18m shares, PSO, higher by Rs.3.75 at Rs.101.35 on 9m shares, ICI Pakistan, up Rs.2.90 at Rs.5m shares and Engro Chemical, off 55 paisa at Rs.57.25 on 4m shares.

Other actives were led by Sui Northern Gas, higher 30 paisa on 3.478m shares, Adamjee Insurance, higher Rs.1.65 on 3.461m shares, MCB, firm by 20 paisa on 1.995m shares, Nishat Mills, steady by also 20 paisa on 1.919m shares and Fauji Fertilizer, firm by five paisa on 1.750m shares.

FUTURE CONTRACTS: Speculative shares on the forward counter also followed the lead of the ready section and generally