KARACHI, Feb 7: The KSE 100-share index on Thursday decisively breached through the psychological barrier of 1,700 points as bulls fought back boosted by perceptions of a robust economy and a new aid package during the President’s US visit. It was up 4.7 per cent or 67.36 points at 1,723.16 and added Rs13 billion to the market capitalization at Rs388 billion.

“It was a judicious blend of both the strong local and foreign buying, which caused a price flare-up on selected counters and the KSE authorities witnessed the successive breach of the circuit breaker, adding new dimensions to the prevailing buying euphoria”, says a leading market player.

Forward counter also followed the lead of the ready section where Hub-Power, Fauji Fertilizer, ICI Pakistan, Engro Chemical and PSO broke the circuit breakers more than once on strong speculative support followed by bullish hella.

After passing through a technical correction overnight, it virtually raced to break the barrier of 1,700 points after making 1,650 the support level. It finally ended higher by four per cent or 67.36 points at 1,723.16, indicating this index level will be jealously guarded and setting the new target of 1,850 points for the near-term.

“Not many could deny the presence of strong foreign buying in some of the pivotals, notably Hub-Power, Engro Chemical and PSO, which have broken the circuit breakers”, stock analysts at the W.E. Financials said “a price flare-up in them has more than one bullish reasons behind it”.

The KSE, as a protective step, has fixed the ceiling rate of Rs1.50 either-way to forestall any speculative rise or fall in any of the share but the buying flurry in some of the pivotals was so strong that it was successively broken.

Stock analysts at Alihussain Rajabali and Moosani Securities say the presence of strong foreign buying though on selected counters has further reinforced the investor perceptions about the current bull-run and they are in the arena considering it a genuine one.

“President’s US visit, a talk of an economic package and lifting of quota curbs on Pakistan textiles to the US seem to have added significantly to the prevailing bullish sentiment”, says a leading broker adding “there could more pleasant surprises for the investors in the coming weeks”.

The buying was broad-based and covered the entire list under the lead of overvalued shares, which set new records for daily price increases.

Shell Pakistan, whose board meeting was held yesterday (Thursday) and came out with an interim dividend of 40 per cent or Rs4 for a 10-rupee share did not follow the market’s upward drive and fell by Rs7.50 on selling prompted by a section of investors who was expecting bonus shares also.

Its interim sales, however, swelled to Rs40.443 billion from the previous Rs36.709 billion but after-tax profit declined to Rs186 million from the previous Rs485 million.

Big gainers were led by Engro Chemical, PSO and Lever Brothers, which rose by Rs4.60 to Rs31 followed by Sapphire Textiles, Central Insurance, Din Textiles, Adamjee Insurance, National Refinery, Fauji Fertilizer, and ICI Pakistan, which rose by Rs2 to Rs3.15.

Shell Pakistan and Grays of Cambridge led the market decline falling by Rs7.50 to Rs10 followed by Balochistan Wheels owing to fall in sales, Security Paper, Burewala Textiles, Kohat Cement and Security Bank, which fell by Rs1.50 to Rs1.75.

Trading volume was maintained at the overnight level of 231 million shares but advancing shares forced a strong lead over the losing ones at 147 to 68, out of 258 actives.

Hub-Power again led the list of most actives, sharply higher by Rs1.80 at Rs26.10 on 77m shares amid hopes of an interim, followed by PTCL, up 85 paisa at Rs18.95 on 52m shares, Sui Northern, firm by 85 paisa at Rs13.95 on 15m shares, Engro Chemical, up Rs4.60 at Rs66.60 on 13m shares and PSO, higher by Rs8.95 at Rs128.90 on 13m shares.

Fauji Fertilizer led the list of other actives, up Rs2.55 on 10.343m shares, Lucky Cement, firm by 80 paisa on 6.772m shares, D.G.Khan Cement, steady 35 paisa on 4.925m shares, Dewan Salman, up 45 paisa on 4.663m shares and MCB, higher by Rs1.45 on 4.514m shares.

FUTURE CONTRACT: The circuit breaker were led by Hub-Power, ICI Pakistan, Fauji Fertilizer, Engro Chemical and PSO, which rose by Rs1.75, Rs2.45, Rs2.70, Rs4.65 and Rs9 at Rs26.15, Rs49.50, Rs51, Rs66.95 and Rs129.50 respectively.