KARACHI, Dec 2: Stocks on Tuesday extended the overnight run-up aided by the Pakistan’s current political offensive to win peace with India but opinions are divided over the positive response from across the border on all the issues.

Pakistan has gone an extra mile on all the inhibiting issues how would India respond beyond the ceasefire, resumption of airlinks and offer to withdraw forces from the LOC would set future direction of the market, analysts said.

The KSE 100-share index broke the barrier of 4,300 points and was last quoted at 4,305.98 as compared to 4,263.07 a day earlier, up 42.31 points amid an actively traded session. The market capital also rose by Rs9.246bn at Rs915.635bn.

Strong rumours about the final date of bidding for the sell-off of PSO in a couple of days also evoked a good bit of interest in it over the last four sessions as was reflected by sharp increase in its share value to Rs290.

An air of optimism prevailed in the corridors of the KSE followed by series of peace moves by Pakistan and positive response from India. The latest offer of withdrawal of armed forces along the Line of Control in Kashmir could trigger fresh buystops if India responds positively.

The KSE 100-share index has risen by over 300 points or nine per cent during the last couple of sessions essentially in response to Pakistan’s current peace offensive and indications are that it may attain its lost glory (index level of 4,604.00) if all goes well on the Indian front.

But most leading stock analysts doubt its ability to hit the high mark of 5,000 points during the current month as speculated by some quarters. The month of December is known for both bullish and bearish tendencies being the closing month and an expected pressure on money supply.

However, addition of the OGDCL in the index as one of the base shares could push it to that level on the strength of its market capital and could lure foreign investors after adding needed depth to the total market capitalization to about $20bn.

Political constraints are also there in the backdrop of LFO and the talk of agitation against the government by the end of the current month.

“India may have some reservations about the on-going Pakistani peace offensive but the way the bourses of the two nations are responding reflects a massive yearning for peace between the two”, says a leading analyst.

Bulk of the fresh buying remained confined to some leading index shares notably PTCL, PSO, Hub-Power followed by OGDCL, which is turning out massive activities each session mostly on the higher side.

Leading gainers were led by Clover Pakistan, National Refinery, Arif Habib, Shell Gas and Javed Omer, which posted gains ranging from Rs8 to Rs18 followed by Lakson Tobacco, PSO, HinoPak Motors, Nestle MilkPak, Mitchelle’s Fruits and some others, up Rs5 to Rs6.

Losers were led by Unilever Pakistan, off Rs47, shedding a part of the overnight gain, followed by IGI, Shahtaj Sugar, Gatron Industries, Shell Pakistan, Reckitt and Benckiser, Colgate Pakistan, Pakistan Services and Wyeth Pakistan, off Rs2 to Rs9.

Trading volume rose to 469m shares from the overnight’s 431m shares as gainers held a fair lead over the losers at 198 to 113, with 47 holding on to the last levels.

The most active list was topped by Hub-Power, up 80 paisa at Rs39.25 on 66m shares, PTCL, firm by 20 paisa at Rs36.75 on 56m shares, D.G.Khan Cement, higher by Rs2.35 at Rs44.80 on 56m shares, FF Bin Qasim, unchanged at Rs21.40 on 44m shares and PSO, up by Rs5.40 at Rs293.90 on 32m shares.

Other actives were led by Maple Leaf Cement, up by Rs1.40 on 31m shares, Pakistan Oilfields, higher by Rs2.05 on 22m shares, Fauji Cement, steady by 15 paisa on 21m shares, PIAC, higher by 55 paisa on expectation of increase in profits after the resumption of airlinks with India, and Dewan Salman, up 55 paisa on 17m shares.

FORWARD COUNTER: OGDCL remained in strong demand and rose by another Rs2 at Rs49.70 on 82m shares followed by PSO, higher by Rs4.50 at Rs294.50 on 11m shares, PTCL, firm by 15 paisa at Rs36.85 on 10m shares, Hub-Power, higher by 95 paisa at Rs39.45 on 8m shares.