KARACHI, Dec 9: As widely speculated, the post-Eid holiday session saw the KSE 100-share index above the crucial index level of 2,400 points and analysts predict its next chart point could be 2,500 thanks to the prevailing buying euphoria.

The question is now being debated among the analysts whether or not it could improve upon its so far all-time peak level of 2,662 established during the mid-90s boom conditions.

Many think it could as “too many a rupee are chasing too few a choice and dividend-yielding stocks if all goes well in line with the current financial perceptions”.

The breach of the psychological barrier of 2,400 points followed by heavy buying in the leading index shares aided by some fresh thinking on the privatization front after the appointment of new financial adviser to the prime minister from Sindh.

The net rise in the index was of the order of 55.23 points or 2.36 per cent at 2,400.34 as compared to previous 2,345.11 points, which means an addition of Rs12 billion in the total market capitalization at Rs544 billion. Turnover figure rose to 252m shares.

The post-Eid holiday rally reflects the presence of strong pent-up demand as well as some fresh buying in the pivotals on the perception that the appointment of the Sindh finance minister as adviser to the prime minister could give a new look to his economic and financial team.

There are no fresh stimulating news either on the political or on the economic fronts but investors seem to be working on their own whims about the state of the economy, political stability and a spate of good news after the newly-elected prime minister settles down, one broker said.

Prime minister’s assurance to cut power and gas rates to give the needed push to the industrial sector and boost exports is welcomed as the pick up in the industrial activity could give the strength to the current buying euphoria.

The other positive factor appears to be the perception that the recent 1.5 per cent cut in the discount rate to 7.5 per cent will make dividend yielding stocks such as PTCL and Hub-Power more attractive for future investment.

“Speculative forces appear to be in a mood to test the index level of 2,500 points in the near-term as widely speculated during the pre-Eid holiday sessions but what next nobody is inclined to predict”, he says.

Stock analysts did not rule out the possibility of selective foreign buying on selected counters as some of the institutional traders literally operate under its shadow taking it as an umbrella.

Whatever the reasons behind the current sustained run-up, one thing appears certain that investors are in no mood to lay their guards for the near-term, capital gains may not be the sole reason behind the flurry.

Leading gainers were led by Grays of Cambridge and Unilever Pakistan, up Rs5 to Rs10, followed by ICP SEMF, Adamjee Insurance, Kohinoor Weaving, Artistic Denim, Pakistan Oilfields, Pakistan Refinery, Shell Pakistan, Bolan Casting, Pak-Suzuki Motors, Clariant Pakistan and PSO, which posted gains ranging from Rs2 to Rs4.40.

Losers were led by Treet Corporation and Pakistan Reinsurance Co, off Rs7.50 and Rs10.10. Siemens Pakistan, Millat Tractors and Sarhad Cigarette fell by Rs2.00 to Rs3.50.

Trading volume rose to 252m shares from the previous 195m shares as advancing shares maintained a strong lead over the losing ones at 222 to 51, with 50 shares holding on to the last levels.

Hub-Power led the list of most actives, up by 50 paisa at Rs29.75 on 57m shares followed by PTCL, higher by 80 paisa at Rs24.05 on 48m shares, FFC-Jordan Fertilizer, steady 60 paisa at Rs9.10 on 32m shares, PSO, sharply higher by Rs4.40 at Rs185.40 on 13m shares, Nishat Mills, up by Rs1.50 also on 13m shares, National Bank, higher by 40 paisa at Rs26.20 on 6m shares and Adamjee Insurance, up by Rs4 at Rs57 also on 6m shares.

Other actives were led by Sui Northern Gas, firm 30 paisa on 13m shares, Pak PTA, up by 45 paisa on 7m shares, Fauji Fertilizer, higher by Rs1.45 also on 7m shares and Adamjee Insurance, up by Rs4 on 6m shares.

FORWARD COUNTER: Hub-Power and PTCL came in for strong support and rose by 55 and 70 paisa respectively at Rs29.85 and Rs21.65 on 11m and 10m shares followed by PSO, sharply higher by Rs4.15 at Rs186.40 on 9m shares, FCC-Jordan Fertilizer up by 60 paisa at Rs9.10 on 7m shares and Engro Chemical, higher by Rs2.20 at Rs75.85 on 6m shares. MCB was traded higher by Rs1.60 at Rs33.30 on large volume.