KARACHI, Sept 2: The total market capitalization on Tuesday soared to a historic level Rs1,000bn or about $17 bn allying analysts fears that the market’s current sustained run-up is overdone and the KSE index may not hit its widely rumoured next target of 5,000 points.

“I don’t presume that the market is paving the way for corporate globalization here under the WTO, its meteoric rise could well prove a prelude to some unforeseen financial miracle in the months to come,” they predict.

However, the KSE and the investors enthusiastically celebrated the occasion sending a wave of an optimism beyond the corridors of the capital market among the investing public.

Not many analysts, some weeks back, were inclined to think that the rubicon could be crossed with such an ease and a convincing margin. The net rise over the day was Rs9.152 billion at Rs1,007.734bn as compared to previous figure of Rs998.582bn.

“As a pre-condition leading foreign funds seek a financial depth of $20bn in the local bourse before their official entry,” says a leading stock analyst “we are moving to that direction and sure to hit the target before the year is out.”

Since February, it had risen by Rs451 billion to Rs1,000 from Rs549bn and from July one to date by Rs121 billion a remarkable achievement, making many investors multi-millionaire in between, they said.

During the same period, the KSE 100-share index rose to 4,564.00 from the 2,399.15, almost doubled during the seven month.

As the buying flurry did not take a breather, the KSE 100-share index also maintained its upward drive and after hitting the day’s best bid at 4,577.29 ended at 4,563.79, up 40.27 points.

Stock brokers said there was a strong whispering in the rings that despite political risks owing to LFO row, the index is sure to touch the high mark of 5,000 points before the year is out.

“Hub-Power board meeting on Sept 4, reinforced by the market talk of final dividend at the rate of 6.5 per share in addition to Rs7 already paid as interim is billed one of the remaining major stimulants to push the index further higher,” they said. “An identical perceptions about the Pakistan Oilfields whose board meets on Sept 15 are also being aired.”

Although carryover charges, which swelled to 17 per cent worried investors fearing a large selling but the current tempo of institutional buying shows that chances of a big shakeout at this stage are remote, they said.

Investors even the jobbers and the weakholders appear to be in mood to assume the role of bears as most of them are following the lead of big and for good reasons too.

Plus signs, therefore, again dominated the list of energy, cement, auto shares being in the forefront of advancing shares finishing with fresh smart gains even at the highly inflated levels.

Big gainers were led by Javed Omer, which rose by Rs42.70 on reports of bonus shares at the rate of 150 per cent in addition to a cash dividend of 250 per cent already paid and Wyeth Pakistan, with an extended rise of Rs54.65.

They were followed by Indus Motors, National Refinery, Pakistan Oilfields, Pakistan Cables, Aventis Pharma, Clover Pakistan, Pak-Suzuki Motors and Pakistan Refinery, which posted gains ranging from Rs7.70 to Rs13.85.

Losers were led by Pakistan Resource Co, Atlas Battery, Fazal Textiles, 6th ICP Mutual fund, Lakson Tobacco, Ahmed Hassan Textiles and HinoPak Motors, off Rs2.45 to Rs6.15.

Trading volume rose to 553m shares from the previous 462m shares as gainers maintained a firm lead over the losers at 220 to 157, with 51 shares holding on to the last levels.

Unlike the previous sessions, when volume leaders were led either by PTCL or Hub-Power, D.G. Khan Cement relegated them to the secondary positions and proved to be most active, up Rs2.30 at Rs46.15 on 80m shares, followed by PTCL, higher by 20 paisa at Rs39.40 on 46m shares, Bosicor Pakistan, higher by Rs2.70 at Rs38.80 on 43m shares, Pakistan Oilfields, higher Rs11.75 at Rs379.90 on 30m shares and Hub-Power, off 30 paisa on pre-board meeting on market talk of lower final, at Rs43.80 on 29m shares.

Other actives were led by FFC-Jordan Fertilizer, firm by 20 paisa on 26m shares, Fauji Cement, steady 10 paisa on 25m shares, Dewan Salman, up 15 paisa on 23m shares, Nishat Mills, higher 80 paisa on 21m shares and Sui Northern Gas, higher by 20 paisa on 20m shares.

FORWARD COUNTER: With the exception of Hub-Power and PSO, which suffered fall ranging from 30 paisa and Rs1.70 at Rs44.15 and 291.30 on 9m and 5m shares, all others shares managed to finish on the higher side under the lead of ICI Pakistan, higher by Rs2.85 at Rs85.25 on 1.450m shares.