KARACHI, Jan 4: Massive foreign buying in PTCL and some other pivotals on Tuesday pushed the KSE 100-share index briefly above the next barrier of 6,300 but the final closing was slightly below this level on late stray selling.

New year buying seems to have made its debut, brokers said adding that bulk of the support originated from foreign investors in an apparent bid to corner the floating stock of those including PTCL before its privatization.

The market's buoyant mood was also well reflected in the steep increase in the KSE 100-share index, which soared by 77.42 points and closed near its next barrier of 6,300 at 6,297.70 as compared to 6,220.28. Market capital also rose by Rs21.646bn at Rs1,746.748bn.

"It could well prove a take-off point of its forward thrust to the index level of 7,000", says a leading broker "but the rise could progressive on the strength of the pace of privatization of state-owned units and corporate earnings".

"I don't think float from the highly overbought market is trickling in," claims a leading stock analyst "institutional traders are holding on to their long positions, while weak-holders are getting out".

The early run-up was aided by fresh heavy buying in PTCL and some other leading shares including Nishat Mills and OGDC, as their floating stock is being squeezed by the some foreign investors for the last couple of weeks. All have soared to their new career-best levels.

The new year opening was, however, not that robust as being speculated in the backdrop of market's December performance when it established new records both in terms of index level and price flare-up. But Tuesday's run-up showed investors are back in the market and could perform miracles in new year trading.

Its highly overbought position apart, massive rise in investment and volume on the carryover market owing to December boom seems to have rang alarm bells in the relative quarter, some others said "the current uncertainty caused by the lurking fear from the badla market will continue to haunt investors until it sheds its extra weight".

But some others predict an attractive bait of sell-off of the state-owned units including Kot Addu Power Company during the current month and PTCL and PSO by the middle of the year is expected to keep investors in an upbeat mood in the coming months also.

"Unlike the year-end sessions, there is now enough money around from the bank and the financial institutions," they said "it would be back in the share business during next couple of weeks and will again create boom conditions aided by higher corporate dividend".

Leading gainers were led by National Foods, AKD Securities, Goodluck Industries, Island Textiles, Gatron Industries, Artistic Denim Bhanero Textiles and Nestle Milkpak, up by Rs10.85 to Rs25.85.

Gadoon Textiles, Nishat Chunian, Atlas Honda, Gul Ahmed after the announcement of bonus shares, Clariant Pakistan and some others also posted good gains ranging from Rs5.50 to Rs8.

Losers were led by Siemens Pakistan and Wyeth Pakistan, off Rs28.95 and Rs32 followed by Indus Dyeing, Shahtaj Sugar, Pakistan Engineering and Pakistan Services, off Rs3.35 to Rs7.65.

Trading volume swelled to 612m shares from the previous 527m shares as gainers maintained a strong lead over the losers at 250 to 144, with 41 shares holding on to the last levels.

PTCL topped the list of most actives, up by Rs1.50 at Rs54.85 on 129m shares followed by Sui Southern Gas, higher by Rs1.90 at Rs28.20 on 62m shares, Pakistan Oilfields, up by Rs5.25 at Rs251.25 on 45m shares, OGDC, steady 15 paisa at Rs74.50 also on 45m shares and Nishat Mills, higher by Rs3.15 at Rs84.25 on 40m shares.

Other actives were led by Lucky Cement, up by Rs1.05 on 30m shares followed by MCB, firm 55 paisa on 26m shares, Sui Northern Gas, higher by Rs1.50 on 20m shares, PICIC Growth Fund, steady by 85 paisa also on 20m shares and D.G.Khan Cement, up by 95 paisa on 19m shares.

FORWARD COUNTER: PPL again came in for active selling, off 30 paisa at Rs143.30 on 21m shares followed by PTCL, up by Rs1.25 at Rs46 on 19m shares and Nishat Mills, higher by Rs2.75 at Rs84.95 on 10m shares.