KARACHI, June 10: Trading volume on Tuesday soared to two-year peak level of 559m shares after the KSE 100-share index confidently broke the barrier of 3,200 points amid active bouts of buying and selling in a highly volatile session.

The all-time single session volume record was established on Dec 31, 2000 at 689.315m shares when Hub-Power alone accounted for 329m shares and the current figure is 4th in line, according to record books. This time FFC-Jordan Fertilizer contributed 120m shares to the total on strong buying followed by reports of higher sales.

Analysts predict the next target of the index could be the 3,500-point level if the current standoff on the LFO issue is resolved amicably and the prevailing political tension is defused.

After hovering between 3,197 and 3,233 on the lower and higher sides, it finally finished around 3,212.25 indicating that the market’s highly overbought position may not significantly jolt it down from the current level. The net rise over the day was 15.07 points.

The subsequent clipping of the initial gains was attributed to higher carryover charges, which caused selling from the weakholders and some others to meet their delivery demands.

The notable feature was that buying interest is shifting from the overvalued to the low-priced shares, notably FFC-Jordan Fertilizer and Bosicor Pakistan on reports of higher sales and start of the commercial operations respectively.

“Everyone is interpreting the new budget in the light of his own perception without having a long-term view of the counter market forces,” analysts said. “But I don’t think the market’s current levels are sustainable in the backdrop of background news.”

No one could deny the fact that the buying support is now broad-based and covered the entire sectors, notably the low-priced ones including those which are the beneficiaries of the fiscal incentives but the chief point to make is this bulk of the support is confined to the leading volume leaders including PTCL and Hub-Power.

However, the correction is overdue and it could come any time. The post-correction direction of the market will be set by the behaviour of the financial traders who are now playing a pivotal role in sustaining the run-up.

Already both the cement and the auto shares encountered a lot of profit-selling and others, which were the centre of the speculative activity in the pre-budget sessions, may follow suit.

Although minus signs dominated the list because of late selling, some of the leading shares managed to finish with and extended gain under the lead of Dewan Textiles, Abbott Lab, Gul Ahmed Textiles, Sapphire Fibre, Packages, Spencer & Co, Rafhan Maize and Unilever Pakistan, up Rs3 to Rs20.

They were followed by Central Insurance, Dewan Khalid Textiles, Saphhire Textiles, Burewala Textiles, Nishat Mills, both in ready and forward counters, Rupali Polyester, Atlas Honda and some others, which posted gains ranging from Rs2 to Rs2.75.

Losers were led by EFU General, Javed Omer, Fazal Textiles, Atlas Battery, Cherat Papers, Clover Pakistan, Nestle MilkPak, Millat Tractors, Indus Motors and Al-Ghazi Tractors, off Rs1.45 to Rs5.95.

Traded volume rose to 543m shares from the previous 389m shares but losers forced a strong lead over the gainers at 226 to 169, with 39 shares holding on to the last levels.

FFC-Jordan Fertilizer topped the list of most actives, up Rs1.05 at Rs13.20 on 120m shares, Hub-Power higher 35 paisa at Rs35.75 on 67m shares, PTCL, easy five paisa at Rs26.90 on 62m shares, Sui Northern Gas, up Rs1.05 at Rs33.05 on 41m shares, Bosicor Pakistan, higher by Rs1.25 at Rs21.55 on 32m shares, D.G. Khan Cement, lower 25 paisa at Rs21.90 on 25m shares and PSO, up 30 paisa at Rs217.20 on 18m shares.

Other actives were led by Dewan Salman Fibre, up 40 paisa on 25m shares, Nishat Mills, higher by Rs2.15 on 20m shares and National Bank, up 15 paisa on 15m shares.

FORWARD COUNTER: Hub-Power came in for strong support and rose by 30 paisa at Rs35.80 on 14m shares followed by FFC-Jordan Fertilizer, higher by one rupee at Rs13.25 on 13m shares, PTCL, unchanged at Rs26.95 on 9.797m shares Sui Northern Gas, higher 75 paisa at Rs33 on 8m shares and PSO, up 40 paisa at Rs215.25 on 5m shares.