KARACHI, Aug 28: Stocks on Thursday witnessed an avalanche of buying orders on all the counters under the lead of blue chips triggered by reports that the MMA and the government are close to an understanding on the contentious issues of the LFO and an elusive perception of peace among the contenders of power.

The KSE share index again broke the barrier of 4,400 at 4,485, up 108.24 points and added a massive amount of Rs22.887bn to the market capitalization at Rs988.932, both are all-time records so far.

For the last several months the MMA and the PML-Q leaders have met many times and an identical positive signals followed each round of talks but both failed to cross the Rubicon. Of late, however, the LFO has been a non-issue for most of the investors as is well-reflected in the market meteoric rise.

The KSE 100-share index soared by 108 points or 2.47 per cent and finished at the day’s best level and demonstrated that the crucial level of 4,500 points is not that far off. It breached the barrier of 4,400 for the second time during the current month and was last quoted at 4,484.84 points.

All pivotals, including PSO, PTCL, Hub-Power, Fauji Fertilizer, Engro Chemical on reports of higher consumption and other leading energy and auto shares, were in the forefront of rising scrips on strong support at the lower levels owing to early week correction.

Large volume both in PSO and Pakistan Oilfields and a virtual price flare-up in them reflects the mood of investors and the future market outlook. Both rose by Rs15.30 and Rs23.45, respectively, against their face value of Rs10. The perception that the sanity will return to the national political scene after a deal on the contentious issues of the LFO buoyed bulls who were looking for an excuse to drive bears out of the market and that came in the form of understanding between the contenders of power.

But much will depend on the approval of the amended constitutional package on the LFO when it is presented in the parliament and carried through by the two-third majority, brokers said. “There could still be many slips between the lip and the cup.”

“But I don’t think there could be an agreement on the LFO between the political elites as the position taken by the President on it is clear,” says a leading analyst. “Moreover, any deal with the MMA may not work smoothly as leading political parties are opposed to any deal with the government.”

After having passed through a consolidation phase, the KSE 100-share again breached through the barrier of 4,400 points, signalling that no one now could halt its drive beyond the crucial level of 4,500 point.

A section of analysts also believed that index could touch the high mark of 5,000 backed by higher corporate earnings and payouts if there was a smooth sailing on the political front.

Plus signs again dominated the list, although bulk of the short-covering remained confined to the volume leader, notably PTCL, which was massively traded followed by Hub-Power and some others.

Big gainers were led by Glaxo-SKF, PSO and Javed Omer, which posted gains ranging from Rs14.85 to Rs34.50 followed by Island Textiles, Security Papers, Sitara Chemical after the announcement of a good dividend of 47.5 per cent, Millat Tractors, Pak-Suzuki Motors, Rafhan Maize and Shell Pakistan, up Rs5 to Rs8.60.

Losers were led by Unilever Pakistan and Wyeth Pakistan, off Rs20 and Rs50 followed by Siemens Pakistan, which ended with an extended fall of Rs19.60 followed by Fazal Textiles, General Tyre, Colgate Pakistan, Gatron Industries and Lakson Tobacco, off Rs2.65 to Rs9.

Trading volume swelled to 598m shares from the previous 385m shares as gainers maintained a strong lead over the losers at 249 to 111, with 52 shares holding on to the last levels.

The most active list was topped by PTCL, higher by one rupee at Rs39.20 on 114m shares followed by Hub-Power, up Rs1.50 at Rs44.75 on 83m shares, D.G. Khan Cement, higher Rs2.85 at Rs44.30 on 46m shares, PSO, sharply higher by Rs15.30 at Rs303.55 on 41m shares and Pakistan Oilfields, up Rs23.45 at Rs336.15 on 39m shares.

Other actives were led by Fauji Cement, up 40 paisa on 31m shares, Chakwal Cement, higher by Rs1.05 on 25m shares, National Bank, up Rs1.15 on 20m shares, Pak PTA, firm by 30 paisa on 16m shares and Lucky Cement, steady 20 paisa also on 16m shares.

FORWARD COUNTER: Hub-Power came in for strong support and rose by Rs1.35 at Rs44.65 on 11m shares followed by PTCL, higher by 81 paisa at Rs39.11 on 9m shares, PSO, sharply higher by Rs14.60 at Rs303 on 6m shares, FFC-Jordan Fertilizer, up 23 paisa on 2m shares and Sui Northern Gas, up Rs1.05 at Rs46.50 on 1.5m shares.