The KSE 100-share index last week finished at an all-time high level of 6,746.40 points. It was boosted by the massive buying in the PTCL and the OGDC, the two leading base shares, having a weight age of 40 per cent.

Around Rs45 billion was added to market capital at Rs1,864.00 billion, and an addition of 186 points or three per cent to the index. Although, there were no evidences but analysts claimed that some foreign buyers have resumed operations to grab the floating stock of the PTCL before its privatization in June this year.

The OGDC followed it, but on the news of its profit and higher interim dividend. "The index level of 7,000 points does not appear as ambitious", said a leading stock analyst and added, "post-Eid holiday trading may witness other previous beaten records".

The advent of foreign buying ahead of a massive sell-off programme of the state-owned units, notably the PTCL and the PSO has changed the entire stock market outlook and investor-perception.

The stocks, therefore, finished the previous week on a higher note after a brief mid-week technical pause caused by the bad news from Sui, the gas supply point, the and suspension of supplies to some industries. But as soon as the situation returned to normal investors were back in the market and made heavy covering purchases in leading index shares, notably the PTCL and the OGDC.

The KSE 100-share index ended the holiday-shortened week with a sharp gain of 186.57 points at 6,746.40, being its career-best levels as the PTCL and the OGDC remained under squeeze by foreign investors.

The pre-holiday massive rise, which generally attracts selling, reflected that the market would continue its upward drive in sessions next week. Thanks to a judicious blend of local and foreign buying.

Prime Minister Shaukat Aziz's statement that situation in Sui was getting back to normal, where the petroleum purification plants are situated. This gave credence, as from there the gas is supplied to units.

Shares of both the Sui Southern and the Sui Northern gas, main distribution channels of the national utility, rose sharply on active support reinforcing the investor-perception that the worst may have been averted.

But analysts said many may not agree to the fact that the Sui situation may have a long-term negative impact on stock trading in coming weeks as a cut in supplies will affect the industrial production thus increasing the costs.

Floor brokers have said that the investors were targeting the PTCL and bank shares, partly on privatization news and partly to higher earnings, most of which have potential of fresh capital gains.

However, it was essentially the PTCL-led rally which held a substantial weight age in the index, and in the absence of the OGDC which remained under pressure owing to bad news from the Sui gas fields, it kept the market in a positive mood.

As fertilizer and textile sectors remained under pressure on selling prompted by the fears of a sharp cut in their annual earnings owing to suspension of gas supplies, investors were rolling positions to relative safer counters, analysts said.

The next two weeks will be crucial for future market direction as much would depend on the behaviour of bargain-hunters and speculative forces as to how they viewed the future share business in the backdrop of tension in Balochistan and fears of a big showdown, they said.

"I don't think big ones could take a breather after pushing the index to their next chart point of 7,000 points in post-Eid holiday session". They further said the next would be guided by the negative fallout in Balochistan".

Apart from the PTCL, the market advance was led by the National Bank, the MCB, the Bank of Punjab, the Askari Bank, on active support followed by the reports of higher interim earnings by the Rafhan Maize, the Colgate Pakistan and several others.

The Siemens Pakistan, the Atlas Honda, the Gatron, the Shell Pakistan took the lead after a high interim dividend of 80 per cent. Shafiq Textiles, the EFU Life and Javed Omer were leading among the losers.

FORWARD COUNTER: The PTCL was massively traded on this counter and accounted for large volume including the Wednesday's 56 million shares, up by Rs3.95 at Rs56.75, its new career-best level during the last four years.