KARACHI, Oct 25: The KSE 100-share index on Friday breached through the barrier of 2,200 points as massive foreign buying in Hub-Power and PSO triggered sympathetic buystops from the local investors signalling the total rout of the bears amid a briskly traded session. The net rise was about two per cent or 42.48 points at 2,236.76.

The most important feature of the day was a record rise of Rs40.076 billion in the market capitalization at about Rs541 billion, which indicated it is edging to match the all-time record of Rs610 billion, set in mid-90s. Never before in the trading history of the KSE, the market capitalization has risen by such a massive figure in a single session.

Despite mid-session weekend selling, it managed to finish with a hefty rise of 42.48 points or about two per cent at 2,236.76, reflecting the strength of leading base shares including PSO, PTCL, and Hub-Power.

“If the current scramble for selected shares continues analysts predictions of the future index level of 2,600 points may not be too ambitious, a figure viewed in the backdrop of its current sustained run-up”.

Trading volume soared to 390m shares from the previous 296m shares as leading investors and speculative traders grabbed the floating stock of some leading shares amid rumours of massive foreign buying in PSO and some other selected shares.

The speculative run, notably in PSO ahead of its board meeting, was so strong that it ended around its circuit breaker at Rs189.40 up by Rs13.20 and so did some other blue chips.

However, whether the index opts for further correction or resumes its journey beyond the 2,200 index level will be guided by the quarterly working results of half a dozen leading companies, notably PSO due next week.

Opinions are divided over the future direction of the market. Some say bulls will dominate the trading at least for the next week until PSO board meeting on Oct 28.

Some others claim the market has already touched its best level aided by speculative support and now it the turn of the bears to rule making the political standoff an excuse.

“No one could deny the fact that the post-election political uncertainty is there and the formation of the government at the centre may set the future course for the market to follow”, most analysts believe.

But the general thinking among them is that the current price flare-up was largely speculative and “inspired” as it was not backed by the objective conditions both on the political and economic fronts”, they added “the pullout of the Indian troops from borders and rumours of higher corporate earnings could hardly sustain the current run-up”.

Big gainers were led by Pakistan Oilfields, Fazal Textiles, PSO, Rafhan Bestfoods and Pakistan Reinsurance Company, up by Rs6 to Rs100.60. Other prominent gainers included Javed Omer, Shell Gas, Crescent Steel, International Industries, HinoPak Motors, Cherat Papers, Clover Foods and Treet Corporation, rising by Rs2 to Rs5.

Losers were led by Shell Pakistan, Honda Atlas Cars, Kohat Cement, Indus Motors, ICI Pakistan, Sapphire Fibre, National Refinery, Wyeth Pakistan, and Unilever Pakistan, off by Rs2.45 to Rs5.

Advancing shares again led the list at 155 to 132, with 33 shares holding on to the last levels.

Hub-Power topped the list of actives on strong foreign buying, up by 70 paisa at Rs25.50 on 100m shares followed by PTCL, higher by 35 paisa at Rs21 on 69m shares, PSO, sharply higher by Rs13.20 at Rs189.40 on 27m shares, Sui Northern Gas, lower 25 paisa at Rs17.15 also on 27m shares and KESC, off 30 paisa at Rs5.45 on 26m shares.

Other actives were led by Nishat Mills, firm by 35 paisa on 18m shares, MCB, steady by 15 paisa on 14m shares, National Bank, firm by five paisa also on 14m shares, and Dewan Salman, up 15 paisa on 12m shares.

FORWARD COUNTER: Bulk of the buying interest remained confined to Hub-Power and PSO, which rose by 78 and 66 paisa for both the settlements at Rs25.60 and Rs25.67 on 16m shares followed by PSO, sharply higher by Rs13.20 and Rs13.31 at Rs189.30 and Rs190.81 on 12m shares for both the contracts.