KARACHI, July 4: The KSE 100-share index on Friday crossed the barrier of 3,500 points but the crucial level could not be sustained owing to late panic selling triggered by reports of killing of several persons in Quetta firing.

The weekend interruption appears to be in part technically-inspired as bulls are in no mood to leave arena even in a highly oversold market, the victim of a massive badla volumes.

The index briefly crossed the barrier of 3,500 points despite a number of abortive bids by the bears to forestall its meteoric rise to new highs over the week but the Quetta firing incident reversed the trend of a bull market.

However, panic selling in the afternoon session followed by reports of killings in Quetta pushed it down to finish off 3.57 points at 3,477.86 as compared to 3,481.43 a day earlier.

Investors are now looking beyond the 3,500 index level and for good reasons too as no one among the leading financial investors is inclined to have a look at one’s inventories before riding the bandwagon above the 3,500 index level.

“What next is the question being debated among the analysts,” whether the index will resume its forward journey to the widely speculated 4,000 level or beat a retreat on selling in a highly overbought market,” brokers said.

A correction is long overdue as higher carryover rates and volume could trigger a lot of selling any time when leading bears chose to strike back.

“I don’t say the market is sitting on a volcano of massive carryover volume and higher rates but chances of panic selling in the similar conditions as the prevailing ones are always there,” they said.

Some others claim the market may have risen beyond its financial mandate but the recent positive developments including a cut of 0.96 to 1.53 per cent on all the national savings scheme has reinforced the perception that the current level could be sustained irrespective of the corrections here and there.

The chief sustaining factor appears to be huge bank surplus funds injected into the share business over the last couple of months and they may not pull them out until there is an equally attractive alternative mode of investment, says a leading analyst.

The higher rate of dividend at Rs1.75 per unit triggered virtual buystops in the shares held in the portfolio of National Investment Trust (NIT), which in turn has positive impact on the broader market.

Although losers managed to force a modest edge over the gainers, leading shares maintained their upward drive and ended with fresh smart gains under the lead of Unilever Pakistan, Glaxo-SKF, Javed Omer and Siemens Pakistan, up Rs9 to Rs24.

Other good gainers were led by 4th ICP, Lakson Tobacco, Mari Gas, after the signing of oil exploration deal with Total of France, BOC Pakistan, Bata Pakistan, Mitchell’s Fruits and AKD Securities, which posted gains ranging from Rs3 to Rs3.80.

Leading losers included Jahangir Siddiqui Bank, Adamjee Insurance, EFU Life, Pakistan Resources Co, Umer Fabrics, Noon Sugar, Crescent Steel, Al-Ghazi Tractors, Shell Pakistan and IGI Insurance, off Rs2 to Rs5.90.

Trading volume fell to 351m shares from the previous 465m shares as losers forced a modest edge over the gainers at 186 to 179, with 56 shares holding on to the last levels.

Hub-Power topped the list of most actives, easy five paisa at Rs38.20 on 53m shares followed by DG Khan Cement, firm by five paisa at Rs30.90 on 52m shares, Bosicor Pakistan, higher Rs1.10 at Rs23.80 on 36m shares, PTCL, easy five paisa at Rs29.05 on 25m shares and Dewan Salman, lower 30 paisa at Rs18.50 on 23m shares.

Other actives were led by PSO, off 90 paisa on 22m shares, Bank of Punjab, lower by 40 paisa on 12m shares, WorldCall, unchanged on 11m shares, National Bank, lower 75 paisa on 9m shares and Engro Chemical, easy 45 paisa on 8m shares.

FORWARD COUNTER: Speculative issues on the forward counter showed mixed trend under the lead of Hub-Power, which was traded unchanged at Rs38.55 on 7m shares, while PSO rose by 15 paisa at Rs234.95 also on the same amount.