KARACHI, March 14: The KSE 100-share index on Thursday confidently breached through the psychological barrier of 1,900 points boosted by heavy buying in the energy shares followed by reports of increase in the margins of oil marketing companies and the retailers.

The index appreciated by 3.77 per cent or 70.21 points 1,930.47, said to be two years peak level amid buying euphoria and large volume of 273m shares.

An idea of near-panic buying in PSO may well be had from the fact that a circuit breaker has to be applied to blunt the speculative run on its share but not with a much success. It has crossed the ceiling rate of Rs1.50 by a big margin of Rs11.90 at Rs170.60 on 12m shares.

The margins of oil marketing companies have been raised to 3.5 per cent from two per cent and that of dealers to four per cent from 3 per cent but both the rates will be effective in two phases before June 30, 2002.

“The increase could well prove a prelude to sell-off of the oil giant PSO to some strategic investor apparently in a bid to make it more attractive for the prospective buyer,” stock analysts at Moosani Securities believe.

Rumours about the increase in margins were afloat in the market for quite sometime but it came when investors were pre-occupied with the news from the Tokyo in the backdrop of President’s visit seeking investment from the Japanese investors in various sectors.

Stock analysts at the Ali Husain Rajabali Securities say it was literally the PSO and Shell Pakistan day as both carried the market along with them to new peak levels, pushing the index well above the barrier of 1,900.

What was more important was that they generated a lot of sympathetic support on other counters, sending signals that the index level of 2,000 now may not be far off, they added.

Pakistan Oilfields, PSO and Shell Pakistan posted gains ranging from Rs9.30, Rs11.90 and Rs16.95 and so did oil refiners including National and Pakistan Refinery. Wyeth Pakistan and Lever Brothers also rose in sympathy showing gains of Rs10 and Rs13.95. Shell rose to Rs243.05 and PSO to Rs170.60.

Other good gainers were led by EFU Life, Bata Pakistan, ICI Pakistan, Universal Leather, Nestle Milkpak, Engro Chemical, BOC Pakistan and Siemens Pakistan, up by Rs2.25 to 6.50.

The market’s buoyant mood was so strong that it discounted the news of default of a Lahore Stock Exchange member after his failure to clear the outstanding dues and sale of his office to realize the defaulted amount, stock analysts at Aziz Fidahusein & Co said adding “the index level of 1,930 reflects that the surge will continue during the coming sessions too”.

Losers were led by Dewan Sugar, Murree Brewery, Clariant Pakistan, Shafiq Textiles and Dawood Hercules, falling by one rupee to Rs2.80 but selling was well-absorbed. Alico, 9th ICP, Dewan Sugar, and Kohat Cement were other among the prominent losers.

Trading volume rose to 273m shares from the overnight’s 240m shares as advancing shares forced a strong lead over the losing ones at 157 to 70, with 48 shares holding on to the last levels.

The most active list was topped by PTCL, up 95 paisa at Rs21.25 on 127.255m shares followed by ICI Pakistan, higher Rs3.80 at Rs54.60 on 19m shares, Pakistan PTA, firm by 75 paisa at Rs7.45 on 17m shares, Dewan Salman, up Rs1.50 at Rs17.50 on 16m shares and Sui Northern, higher 60 paisa at Rs15.40 on 12m shares.

PSO led the list of other actives, up by Rs11.90 at Rs170.60 on 12m shares, FFC-Jordan Fertilizer steady by 30 paisa on 9m shares, Hub-Power, higher 90 paisa on 8m shares, Fauji Fertilizer, higher Rs1.35 on 7m shares and MCB, up Rs1.60 also on 7m shares.

FUTURE CONTRACTS: PSO remained under speculative squeeze and rose by Rs11.95 conclusively defying the dictates of circuit breaker, finishing at Rs171.55 on 2.559m shares followed by Engro Chemical and ICI Pakistan, which also rose by Rs1.75 and Rs3.80 at Rs74.80 and Rs54.80 on 0.581m and 0.897m shares.