KARACHI, July 10: The KSE 100-share index on Thursday briefly tested its new career-best level at 3,615 assisted by massive buying in PTCL and Hub-Power and kept analysts guessing about its next chart point even for the near-term but the breach of barriers is now no news for the investors.

“All roads may not have led to the KSE’s Khalian Road (Pakistan’s Wall Street) the developing buying euphoria signals they may after the local political tension over the LFO is defused,” predicts a leading analyst.

The KSE index at a record high of 3,596.87 and the market capitalization at Rs801 billion (close to $14bn), indicate best levels are yet to come and not in a very distant future.

For the last two months, it has risen about 600 points after having successfully broken six barriers starting from the crucial level of 3,000 without any tangible technical correction despite higher carryover volume and rates.

The market is not sitting on the volcano as many analysts feared some weeks back it has terribly liquid money market, predictions of higher interim earnings and a loud whispering about the presence of strong foreign buying behind it. Moreover, it now ensures return of 15 to 20 per cent on short-term, which is more than attractive amid shrinking investment avenues.

Stocks, therefore, maintained their winning streak as investors and speculative forces continued to build up long positions on selected counters aided partly by some positive developments on the political front and partly to a massive floating liquidity.

After briefly breaching the barrier of 3,600 at 3,615 points at one stage, the KSE 100-share index finally finished with an extended smart gain of 44.54 points at 3,596.87 as compared to 3,552.33 a day earlier, reflecting the strength of the leading base shares.

Both PTCL and Hub-Power were massively traded and credited with a half of the total volume, their individual tally being 137m and 103m shares respectively.

“The index seems to be galloping to its next chart point of 4,000 possibly during the current month,” predicts a leading analyst. “The successfully breach of the 3,600 level has reinforced the investor perceptions of a correction after the 4,000 index level.”

“Hopes of positive outcome of talks on LFO could bring sanity to the polarised atmosphere and that is what the market needs now,” he adds.

But some other predict that it now may not be that easy to pull the market down from the current level even if talks on LFO fails as it has other supporting factor including talk of foreign buying.

“When too many a rupee chase too few stocks, there is always a price flare-up,” commenting on the market outstanding performance one analyst said adding “the successive breach of the index barriers after the 3,000 speaks eloquently about the investor mood and his investment priorities.”

No one could deny the fact that in the absence of corporate demand for fresh credit lines from the banks, excess money is finding outlets in the shares and real estate and both are facing boom-like conditions.

Investors are targeting half a dozen shares including PSO, PTCL and Hub-Power most of which still ensure handsome capital gains in the weeks to come on the strength of higher earning for the half year ended June 30, 2003.

Low-priced shares having sound financial footing, notably ICP mutual funds, bank, insurance, textile and synthetic sectors also attracted good support and added their share to the market.

Barring cement shares, which attracted profit-selling at the higher levels, all others showed good gains under the lead of Pakistan Oilfields, PTCL, PSO, Engro Chemical, PICIC, PICIC Bank, and secondliners as Telecard and many others.

Prominent gainers were led by Reliance Cotton, Kohinoor Weaving, Quetta Textiles, Abbott Lab, AKD Securities, BOC Pakistan, Pakistan Oilfields, Sapphire Textiles and Arif Habib Securities, which posted gains ranging from Rs3 to Rs11.

But the last rise of Rs6, Rs7.60, Rs13.10 and Rs19.50 were noted in Bhanero Textiles, Spencer & Co, Javed Omer and Unilever Pakistan respectively.

Losses on the other hand were modest barring Lakson Tobacco, EFU Life, Shahtaj Textiles, Mehmood Textiles, Al-Ghazi Tractors, IGI Insurance and Jahangir Siddiqui & C0, which were quoted lower by Rs2 to Rs3.60.

Trading volume further expanded to 524m shares from the previous 407m shares as advancing shares maintained a strong lead over the losing ones at 284 to 137, with 51 shares holding on to the last levels.

PTCL topped the list of most actives, up 95 paisa at Rs31.25 on 137m shares followed by Hub-Power higher 65 paisa at Rs39.25 on 103m shares, Engro Chemical, up Rs2.05 at Rs90.20 on 32m shares, FFC-Jordan Fertilizer, firm 15 paisa at Rs14.10 on 18m shares and Pakistan Oilfields higher by Rs5.75 at Rs226.00 on 17m shares.

PIAC led the list of other actives, firm 35 paisa on 17m shares, Nishat Mills, up also by the same amount on 16m shares, PSO, higher by Rs1.35 on 15m shares, Telecard, up Rs1.15 on 12m shares and WorldCall, higher 35 paisa also on 12m shares.

FORWARD COUNTER: PTCL also came in for heavy buying on the forward counter and rose by 95 paisa at Rs31.35 on 17m shares followed by Hub-Power, higher 55 paisa at Rs39.35 on 13m shares, PSO, up Rs1.60 at Rs238.35 on 5m shares and FFC-Jordan Fertilizer, steady 10 paisa at Rs14.10 on 4m shares.