KARACHI, Feb 1: Stocks remained in a bullish frame of mind on Friday as heavy fresh buying in the pivotals, notably PSO ahead of its privatization kept bears out, allowing the 100-share index to add another 50.71 points at 1,670.89 as all roads led to the KSE throughout the weekend session.

After breaching the barrier of 1,600 points, the KSE 100-share index now is heading to hit the next target of 1,700 points by the next week if the prevailing buying euphoria is sustained by next week.

However, after early rising by 60 points, it attracted weekend selling and fell to 1,648, but later support allowed it finish again higher, indicating its run-up is not overdone.

But some analysts predict that being in a highly overbought position, the market could pass through a correction before resuming its upturn.

A big price rise in PSO featured the trading as the circuit-breaker has to be applied to defuse speculative run on its share.

The speculative buying in PSO was strong and it appears that its possible bidders are out to grab its floating stock at the current levels. As the buying flurry remained unsatisfied till the close of the session, the KSE has to apply circuit-breaker to restore sanity to the bull-squeeze and a fresh price flare-up.

The buying euphoria aided by strong foreign buying was further intensified followed by predictions that the best is still to come and as no one was inclined to miss the bandwagon prices rose sharply on all the counters.

All the blue chips and leading shares participated in the run-up, but the day’s limelight was stolen by PSO, which came in for strong support ahead of its privatization and rose by Rs8.15 at Rs117.15.

Cement shares remained in strong demand under the lead of those who have secured foothold in the Afghanistan cement market. Other may follow as the breakthrough has already been achieved, which could open the way for other industries, notably textile, ghee and flour mills.

Oil shares did not react bearishly to the current price adjustment of POL products and behaved well carried apparently away by the buying euphoria in PSO.

Most of the second-liners, notably in the textile and investment sectors also came in for active support at the lower levels and finished modestly higher amid active trading.

The buying flurry by some foreign interest was so strong apparently in a bid to corner the floating stock before its privatization that it broke the circuit-breaker by a big margin. The KSE has imposed a ceiling rate of Rs1.50 either way to forestall undue fall or rise in the shares which may come under speculative squeeze on the forward counter. But speculative buying in PSO was so strong that it appears difficult to save the breach of the rules.

It was, however, another bad day for the bears who made an abortive effort to reverse the trend after making an excuse of the weekend considerations, which generally attract profit-selling, but bulls were not inclined to sit idle.

“At one stage all roads led to the KSE as investors were not inclined to miss the rising market amid rumours of strong foreign buying,” analysts said, adding “foreign buying was there but not at the scale, which some quarters made it look so.”

The market is now in a highly overbought position and needs correction and may come any day during the next week, but it could resume its upward drive after meeting its technical demands.

Trading volume was maintained on the higher side at 276m shares as gainers held a strong lead over the losers at 184 to 48, with 43 shares holding on to the last levels.

Hub-Power again topped the list of most actives, up 65 paisa at Rs24.05 on rumours of interim dividend, PTCL, higher 45 paisa at Rs18.30 on 59m shares, Sui Northern, firm 55 paisa at Rs13.60 on 20m shares, Dewan Salman, steady by 70 paisa at Rs16.45 on 14m shares and PSO, sharply higher by Rs8.15 on 13m shares.

FUTURE CONTRACT: Biggest rise of Rs8.15 was noted in PSO, up Rs8.15 at Rs117.40 on 0.750m shares followed by Fauji Fertiliser, ICI Pakistan and Engro Chemical, up by Rs1.55, 2.40 and Rs2.95 at Rs49, 48.65 and Rs63.30, respectively.