KARACHI, July 12: Heavy buying in the PSO followed by rumours of bonus shares highlighted Monday's trading on the stock market as investors covered positions at the lower levels in other energy and auto shares amid a briskly traded session. The KSE 100- share index ended 32.19 points up at 5,485.74 after breaking the barrier of 5,500 at one stage.

The new import duty structure on the import of cars, which may not render imports that attractive as widely speculated earlier seems to have given a fresh post-budget boost to the auto sector as share values of all the local assemblers rose in unison on strong buying. The perception behind the fresh surge was that the local stuff will be still a bit cheaper.

The session's other notable feature that the KSE 100-share index briefly breached through the barrier of 5,500 points after having successively broken the other three barriers starting from 5,200 during the last couple of weeks.

The market's buoyant mood reflects that its first priority is to level the previous all-time higher index level of 5,620 and then to resume its onward march to its next target of 6,000.

At one stage, it touched the day's peak level of 5,708 but failed to sustain it owing to late selling at the inflated levels in some of the blue chips. It finally finished with an extended gain of 32.19 points at 5,485.74 as compared to 5,453.55 last weekend as leading base shares tended further higher.

The PSO, which had skipped widely rumoured bonus shares last year and compensated its shareholders with a higher cash dividend of 60 per cent is rumoured to announce a cash payout of 30 per cent plus bonus shares at the rate of 20 per cent in addition to 100 per cent cash dividend already paid.

Its share value surged by Rs15.35 amid predictions that it could surpass the lately hit higher level above 300 during the next couple of session supported by an attractive P/E of Rs26, some brokers predict.

Other energy shares, notably gas sector also performed well under the lead of Sui Northern Gas on reports of early completion of expansion plans to meet the increasing consumer demand.

Unlike the previous boom-like conditions aided by massive buying in the cement shares, the investor focus now will be on the energy and banking sectors as both have the potential to rise further on the strength of higher payouts, analysts said.

Auto shares also came in for active short-covering under the lead of Indus Motors and Pak-Suzuki after the announcement of import duty on the import of new and reconditioned cars, which in their calculation will make import more expensive as compared to local stuff, brokers said.

"Investors are getting very active under the lead of financial institutions amid forecast of higher corporate announcements from some of the leading companies for the year ended June 30, 2004," they said.

Leading gainers were led by Dawood Larencepur, National Refinery, Indus Motors, Shell Pakistan, Lakson Tobacco, Pak-Suzuki Motors and the PSO, up by Rs5.50 to Rs15.35. Prominent losers included Sitara Chemicals, Al-Ghazi Tractors, Arif Habib Securities, Packages, Javed Omer and Fateh Textiles, off Rs3.85 to Rs20.85.

Trading volume rose to 398m shares from the previous 360m shares as gainers held a modest lead over the losers at 150 to 136, with 38 shares holding on to the last levels.

Bank of Punjab topped the list of actives, up 25 paisa at Rs64.20 on 46m shares followed by DG Khan Cement, higher by Rs1.15 at Rs60.15 on 42m shares, National Bank, lower 10 paisa at Rs71.60 also on 42m shares, ICP SEMF, sharply higher by Rs3.65 in sympathy with the PSO, in which it holds a massive stake, at Rs52.40 on 26m shares, PSO, higher by Rs15.35 at Rs272 on 23m shares, and PTCL, unchanged at Rs43.95 also on 23m shares.

Other actives were led by Sui Northern Gas, firm by 40 paisa on 15m shares, OGDC, higher by 30 paisa also on 15m shares, Pak Premier Fund, steady 25 paisa on 14m shares and FF Bin Qasim, up 20 paisa on 13m shares.

FORWARD COUNTER: Pakistan Petroleum came in for renewed selling and fell by 50 paisa at Rs106.80 on 8m shares followed by the PSO, higher by Rs14.55 at Rs272 on 6m shares, PTCL, steady by 10 paisa at Rs44.05 on 4m shares, National Bank, firm by 10 paisa at Rs72 on 3m shares and DG Khan Cement, higher by Rs1.20 at Rs60.45 also on 3m shares.