KARACHI, June 18: The KSE-100 share index made another massive gain of 35 points on Wednesday, to touch the new highest-ever recorded level of 3272 points. But the bourse’s management had a word of caution to offer to the investors.

For the stock brokers it is a stag party all the way, as their fingers ache from continuous count of currency notes earned in commission as more and more investors dabble into low-priced stocks. But amid all the dint of celebrations and jubilations, the market managers are reminding investors that discretion is the better part of valour.

“The rising Carryover transaction (COT) or ‘badla’ is a cause for concern and weak holders must not overstretch themselves,” Moin M.Fudda, managing director KSE told Dawn on Wednesday.

He pointed out that the COT investment had climbed to Rs13 billion with the badla rates in some of the stocks hitting their maximum capped limit. He said that it indicated that the market was highly leveraged and unless the weak holders were careful, they could find themselves in trouble, if the financiers opted to withhold liquidity.

The KSE MD said that the market rally between January and May this year, had been driven on the back of dividend yields. But he observed that the month of June had seen the reawakening of second-tier stocks. He suggested that investors make intelligent decisions, based on research about sponsors and track record of company performances and dividends, before putting their money in shares.

“It would be an unwise move to invest in second-tier stocks on tips, rumours and someone’s recommendations, unless such stocks have intrinsic strength and merit,” warned Mr. Fudda. The KSE MD, however, stated that capital adequacy and exposures were under firm control and the management was continuously monitoring the situation.