KARACHI, Feb 4: The buying euphoria was well-sustained on the stock market on Monday but late profit-selling in some of the pivotals allowed the KSE 100-share index to close with clipped gain of 11.46 points after breaking the barrier of 1,700 points.

But analysts were unsure whether or not technical correction has set in or the market just passed through a consolidation phase before resuming its upward drive.

The speculative run-on the PSO on the forward counter continues and for good reasons, too, as it soared by another Rs5.65 at Rs123.05 on 1.150m shares as leading investors continued to build up long positions ahead of its early privatization.

The index opened 23 point higher than the weekend closing and steadily rose by about 40 points to 1,711 at which level profit-hunters moved in and took profits at the highly inflated levels. Although the final closing was up 11.46 points at 1,682.35, the barrier could not be sustained.

But that in no way reflects that the current run-up is overdone despite the fact that market is in a highly oversold position. Analysts predict that the current buying euphoria could be sustained until the president’s US visit beginning from Feb 12.

The market could pass through a moderate correction but analysts at the W.E. Financials rule out any possibility of a big shake-out at this stage as all the fundamentals are more than bullish.

“President’s US visit could pave the way for more financial and trade benefits in addition to fresh credit lines,” they hope and added to it is “some soft talk from India on the political issues.”

However, no one could dispute the fact that a correction is long overdue but as investors are not inclined to take profits aided by the bullish factors, the upward drive is expected to continue until there is some big negative news short of war.

“All the aiding factors lead to a bull-run,” stock analysts at the Moosani Securities predict, adding “the advent of strong foreign buying, outflow of huge funds from the dollar to the share business, rising foreign reserves and reopening of Afghan trade route have reinforced the perception that the lean period now is far off.”

The successive breach of five barriers by the index, a 25-per cent increase in the index levels and a massive recovery of Rs75 billion in the market capitalization, all point to genuine price flare-up, brokers say.

Both the ranges of stocks that came in for trading and the turnover figure showed a sizable expansion, reflecting that the buying is terribly broad-based and reflective of buoyant market.

Prominent gainers were led by the energy sector under the lead of Pakistan Oilfields, PSO and Pakistan Refinery, which rose by Rs2 to Rs5.35, but the largest rise of Rs14.90 was noted in Shell Pakistan on active short-covering at the lower levels.

The biggest rise of Rs27 was recorded in Fateh Textiles, followed by General Tyre, BOC Pakistan, SK&F, Central Insurance and Lever Brothers, which rose by Rs2 to Rs10.

Losers were led by Wyeth Pakistan, which after rising by about Rs70 over the last week, fell by Rs18 followed by Grays of Cambridge, off Rs25.

Cement shares, which have been strong demand followed by reports of export to Afghanistan fell in unison on active selling and so did Ghani Glass, 11th ICP, ICI Pakistan and Cherat Paper, which fell by Rs1.20 to Rs2.

Trading volume rose further to 281 million shares as out of 297 actives, 141 shares rose, 112 fell, both Hub-Power and PTCL remaining the volume leaders.

Hub-Power topped the list of most actives, up 25 paisa at Rs24.35 on 88m shares followed by PTCL, firm by 15 paisa at Rs18.45 on 69m shares, Sui Northern, easy five paisa at Rs13.55 on 20m shares, Dewan Salman, up 70 paisa at Rs17.15 on 14m shares and PSO sharply higher by Rs5.35 at Rs122.50 on 11m shares.

D.G. Khan Cement, which led the list of other actives, off Rs1.15 on 8.040m shares, ICI Pakistan, lower Rs1.50 on 7.427m shares, Engro Chemical, easy 25 paisa on 7.030m shares, FFC-Jordan Fertiliser, off 40 paisa on 7.002m shares and Pakistan PTA, firm by five paisa on 6.291m shares.

FUTURE CONTRACTS: Hub-Power was again actively traded, up 35 paisa at Rs24.45 on 3.293m shares followed by PTCL, higher by 11 paisa at Rs18.60 on 2.918 shares. Others also mostly rose amid active trading.