KARACHI, May 4: Stocks on Tuesday finished with fresh widespread gains as investors resumed their covering purchases aided by steep decline in carryover rates and volume. The KSE index broke the barrier of 5,500 at 5,525.54, up 95.11 points and added Rs25 billion to the market capital at Rs1,481 billion.

The market may still not be in an ideal oversold position despite last week's sell-off, but some of the leading institutional traders made it look so and managed to evoke a lot of sympathetic buying from those holding short positions.

Reports of higher corporate earnings, investment-friendly new national budget and presence of strong speculative buying on selected counters were among some of the positive factors, which fuelled the rally.

The KSE 100-share index breached through the barrier of 5,500 points and was last quoted at 5,525.69, as compared to previous 5,430.43 points, up 95.26 points or 1.75 per cent.

Although the index is still far below its April peak level of 5,660, indications are that the current surge could be maintained during the coming sessions also on the strength of higher interim corporate earning reports.

The steep decline in carryover rates and investment from the peak levels to a manageable limit owing to early last week's persistent sell-off, gave an ideal opportunity to the big ones to strike back at the lower levels and the continuation of the weekend surge," analysts said.

A sharp increase of 1.4 to five per cent increase in petroleum prices was another aiding factor as it generated a lot of speculative buying in the energy shares. Massive covering purchases in the leading index shares, notably PTCL, OGDCL, National Bank and MCB signal that the market has already met its technical demands and is well on the way to establish new records.

Heavy buying in leading bank shares notably National Bank, MCB and many others on the strength of higher interim earnings and market talk of good interim payouts was another aiding supporting factor.

"The market appears to be following its previous trend when the badla rates fell into single-digit last month and index soared to 5,660, the fall in investment is leading it to the same path," brokers predict.

Free-float from the carryover market in most of the blue chips, having a major growth potential is expected to keep the market in a good shape to in the coming sessions, they said.

Plus signs again dominated the list, leading gainers being IGI Insurance, Gatron Industries, EFU Life, Glaxo-SKF, Aventis Pharma, Arif Habib Securities and Siemens Pakistan, which posted gains ranging from Rs9 to Rs27.

Other prominent gainers were led by Noon Sugar, Adamjee Insurance, Lakson Tobacco, Attock Refinery, National Foods, Security Papers and Abbott Lab, which rose by Rs6.15 to Rs8.95. Losers were led by Colgate Pakistan, Clariant Pakistan, Artistic Denim, Pak Elektron and Burewala Textiles, off Rs1.85 to Rs5.20.

Meanwhile, shares worth Rs340m of Bank Al-Falah at a premium of Rs20 each (face value Rs10) will open for public subscription for three days from May 17 to 18. The Trust Commercial Bank has applied for listing its share on the KSE.

Trading volume rose to 527m shares from the previous 498m shares as gainers held a strong lead over the losers at 254 to 98, with 35 shares holding on to the last levels.

PTCL topped the list of most actives, up one rupee at Rs45.30 on 72m shares followed by OGDCL, higher by 90 paisa at Rs68.65 on 60m shares, Fauji Cement, firm by 25 paisa at Rs16.80 on 51m shares, MCB, higher by Rs2.90 at Rs58.90 on 39m shares, National Bank, up Rs2 at Rs71.15 on 33m shares, Bank of Punjab, higher by Rs2.40 at Rs54.65 on 28m shares and D.G. Khan Cement, steady by one rupee at Rs59.35 on 27m shares.

Other actives were led by FF Bin Qasim, up 75 paisa on 30m shares, Maple Leaf Cement, higher by Rs1.10 on 18m shares and Sui Northern Gas, steady by 15 paisa on 18m shares.

FORWARD COUNTER: PTCL was also actively traded on the forward counter, up 81 paisa at Rs45.35 on 9m shares followed by Sui Northern Gas, higher 40 paisa at Rs69.05 on 5m shares, Hub-Power, up 25 paisa at Rs35.35 on 4m shares, FF Bin Qasim and MCB, up 68 paisa and Rs2.30 at Rs22.45 and 59.25 on 3m shares each. Engro Chemical and Fauji Fertilizer also rose by Rs1.50 and Rs3.51 at Rs101.25 and Rs130.50, respectively.