KARACHI, Jan 7: Stocks on Wednesday maintained their upward thrust followed by active short-covering on all the counters aided by positive end of the Islamabad summit and major breakthrough in relations with India.

The final outcome of the stepped up peace overtures both Pakistan and India may still be an elusive goal, but they have created a buying euphoria on the perception "everything will be fine after leaders sit on the negotiation table."

All the leading and low-priced shares virtually raced toward their pre-reaction levels under the lead of insurance, auto, energy and chemical sectors on strong support both from the institutional traders and the general investor, lifting the market capital by another Rs11bn to 974bn.

The Islamabad declaration was widely welcomed by the investors amid hopes that it would boost trade among the Saarc countries after the cut in tariff to 0.5 per cent. Other incentives to increase regional trade also reinforced the investor perception of an easy sailing on the market.

"The signing of the SAFTA aiming at a closer cooperation among the members could well make the region a formidable economic bloc compatible with any western trade blocs," many economists predict.

The KSE 100-share index rose by 50.39 points at 4,565.23, signalling that it is heading to touch its previous all-time peak level of 4,604, hit in mid-September last year.

"The index level of 5,000 points now may not be an elusive goal," says a leading analyst. "All the basic factors at home and abroad now point that it is now within the reach."

Investors noted with interest Indo-Pak peace moves and hopes, they will continue to have a positive impact on the country's bourses in the coming months, notably after the resumption of "composite talks" by the next month.

"The recent thawing in Indo-Pak tension is beyond the expectations of pundits on both sides of the fence," analysts said. "Foreign direct and portfolio investment, which has been at their lowest levels could get needed impetus after the tension between Pakistan and India ends."

The market is expected to grow in stature each week after Indo-Pakistan talks resume next week and leading investors are already taking positions on the potential counters where the chance of capital appreciation may be much bigger.

Plus signs were strewn all over the list, major gainers being Pakistan Refinery, IGI, and Siemens Pakistan, up Rs7 to Rs20.05 followed by Adamjee Insurance, Dawood Cotton, Shell Pakistan, HinoPak Motors, Indus Motors, Pak-Suzuki, Nestle MilkPak, Clariant Pakistan, Tri-Pak Films and Burewala Textiles, which posted gains ranging from Rs5 to Rs6. Losers were led by Parke-Davis, off Rs40. Other notable losers included Otsuka Pakistan, Sana Industries, Cherat Papers, Ferozsons Lab and Island Textiles, off Rs2 to Rs3.

Trading volume rose to 266m shares from the previous 248m shares as gainers maintained strong lead over the losers at 243 to 104, with 54 shares holding on to the last levels.

After several weeks, Hub-Power came in for strong support and rose by 60 paisa at Rs38.90 on 39m shares, followed by Maple Leaf Cement, higher by Rs1.25 at Rs33.25 on 30m shares, FF Bin Qasim, higher by 82 paisa at Rs18.90 on 19m shares, PTCL, up 25 paisa at Rs37 on 18m shares and Sui Southern, currently under privatization, up five paisa at Rs31.20 on 16m shares.

Other actives were led by Sui Northern Gas, off 55 paisa on 14m shares, ICP SEMF, higher by Rs3.50 on 13m shares, PSO, up Rs2.10 on 11m shares, Lucky Cement, firm by 20 paisa on 9m shares and DG Khan Cement, up 15 paisa also on 9m shares.

FORWARD COUNTER: OGDC came in for modest support and rose by 25 paisa at Rs53.05 on 26m shares, FF Bin Qasim, higher by 40 paisa at Rs18.90 on 7m shares, Hub-Power, up 45 paisa at Rs39.05 on 4m shares, PSO, higher by Rs2.25 at Rs288.50 on 3m shares and Worldcall, higher by 95 paisa at Rs15.65 on 2m shares.