KARACHI, June 28: The KSE 100-share index on Monday soared by 173 points or 3.4 per cent at 5,279.23, on a massive positive reaction to the nomination of Shaukat Aziz as the future prime minister , replacing Chaudhry Shujaat Hussain after an interim period of about two months.

The exit of former prime minister Zafarullah Khan Jamali seems to have no relevance to the political change at the top as investors flooded the market with buy stops, adding Rs45.324bn to the market capital at Rs1,421bn.

"It is a red carpet welcome to the future prime minister," an analyst commenting on the market's sharp rebound says. "Punters seem to have digested the levy of new taxes including CVT just in one go."

Bulk of the support, which was confined to leading base shares, reflects that a good part of the massive buying may be "inspired", some others claim. "The long-term implications of the change at the top could be negative." But the rally was terribly broad-based and covered all the sectors, although energy and auto shares were in the forefront of leading gainers.

After the initial euphoria about the change fades, there could be some rethinking on the whole issue but it appears certain that from now onward the market will be guided by the course of political events in Islamabad rather than some basic positive economic fundamentals, they add.

The market's buoyant mood was also well-reflected in the meteoric rise of the KSE 100-share index, which soared by 173.34 points at 5,279.23 as compared to 5,105.69 at the last weekend.

Heavy short-covering in OGDCL, which was marked up by Rs3.35 at Rs64 was the chief contributors to sharp rise in the index as a gain of one rupee in it adds 20 points in the index. It alone added 70 points to the total.

The perception that the investment-friendly economic policies Me Aziz initiated in 1999 when he took over as the finance minister will continue during the next couple of years buoyed CVT-hit investors who flooded the market and made extensive covering purchases at the lower levels.

However, the sharp increase in the index is not the largest in a single-session. It had risen by 182.47 points on September 18, 2003 on recovery after a steep decline of 300 points and on December 1, 2003, when it netted the all-time single-session gain of 194.78 points.

"Massive positive reaction to Shaukat Aziz's appointment as the next prime minister after the interim one resigns led investors to digest the negative fallout of Capital Value Tax, which has curtailed the daily volumes of a modest proportions," analyst said.

"But there are still many a slip between the cup and the lip." All the blue chips raced towards their reaction levels under the lead of Arif Habib Securities and Javed Omer, up by Rs49.15 and 40.85, respectively, followed by Millat Tractors, Indus Motors, Central Insurance, HinoPak Motors, Atlas Honda, Pakistan Oilfield, PSO, Shell Pakistan, National Refinery, Gatron Industries, Shahtaj Sugar, Noon Sugar and Pakistan Refinery, EFU Life, which posted gains ranging from Rs5 to Rs13.40

Losers were led by Siemens Pakistan and Treet Corporation, off by Rs8 to Rs13 followed by Habib Insurance, Indus Dyeing and Al-Ghazi Tractors, off Rs1.50 to Rs5. Trading volume rose to 372m shares from the previous 238m shares as gainers forced a strong lead over the losers at 293 to 51, with 23 shares holding on to the last levels.

Apart from OGDCL, the most active list was topped by D.G. Khan Cement, up 60 paisa at Rs58.15 on 27m shares, PTCL, higher by 90 paisa at Rs26m shares, National Bank, higher by Rs3.55 at Rs66.90 also on 26m shares, Fauji Cement, up Rs1.30 at Rs17 on 22m shares and Hub-Power, higher by Rs1.40 at Rs32.50 on 21m shares.

Other actives were led by Lucky Cement, higher by Rs2.40 on 20m shares, Bank of Punjab, up Rs3.60 on 16m shares, F.F. Bin Qasim, firm by 90 paisa on 15m shares and MCB, higher by Rs3 on 14m shares.

FORWARD COUNTER: OGDCL also led the list of actives on the cleared list on strong buying, up Rs2.20 at Rs64.30 on 5m shares followed by Bank Alfalah, firm 90 paisa at Rs54.70 also on 5m shares, PTCL, up 75 paisa at Rs42.65 on 4m shares, PSO, higher by Rs6.20 at Rs260.20 also on 4m shares and F.F. Bin Qasim, up 84 paisa at Rs19.35 on 3m shares. Turnover figure swelled to 61m shares from the previous 34m shares.