All previous records, both in terms of the index level and the market capital, were surpassed last week as investors were not inclined to take even a technical breather in a highly overbought market.

The index level at 7,239 points, up by 270 points or five per cent, and the market capital at Rs2,001 billion had given the needed depth to the market. The advent of heavy foreign buying in coming weeks was not ruled out by the leading analysts.

Some speculative traders were keeping a watch over the index level at 8,000 points before looking back as by that time most of the dividend news from the leading shares would be out and the investors would have to readjust their portfolios in the backdrop of objective conditions.

The KSE 100-share index confidently breached through two consecutive barriers as punters and institutional traders were not inclined to take even a technical breather or miss the rising market despite being in a highly overbought position.

"We were now eyeing the index level at 8,000 points for near-term as all basic fundamentals on corporate front appeared positive", said an analyst while commenting on its meteoric rise. "The crossing over of 7,100 and 7,200-point barriers were significant for more than one reason and bears knew it well".

After having touched its new carrier best level at 7,238.92 points as compared to the previous week's 6.968, up by about 270 points or five per cent, the KSE 100-share index showed that the best was still to come. Market capital also swelled to $35 billion, giving the needed intensity to the market as was required by foreign funds.

There was, however, a loud whispering that the current level of index was terribly expensive and was not P/E related - an international standard as it was essentially driven by speculative buying based on higher dividend, some analysts said.

"In typical Pakistani conditions it may not fall below the current levels, technical corrections here and there notwithstanding, as any hike seldom eases", they added.

There was no trace of the last week's selling after the trading resumed for the week as financial investors were back in the market and covered positions at lower levels driving the bears out who at one stage tried to turn the price balance in their favour after having indulged in selling in few favourite stakes.

The market advance was led by the energy sector which rose in unison under the lead of Shell Pakistan, National and Pakistan refineries, apparently in a response to an average increase of 8.25 per cent in gas rates. The OGDC turned out a massive activity ahead of its board meeting and market talk of higher interim dividend.

It was interesting that the investors were not deterred by negative news from Balochistan and were literally following the market dictates led by positive corporate reports. Some said that the saturation point had arrived but others claimed that the best was yet to come and that could be astounding", brokers said.

Some leading bears tried to push the prices further down what the dealers called spill-over of the weekend selling but there were buyers at dips enabling the market to maintain its upward drive.

Reports that the privatization minister would lead the road-show of Kot Addu Power Company in Karachi reinforced investor-perception that the government meant business as far as its massive sell-off programme was concerned.

The IPO of Kot Addu Power Co (Kapco) will open for public subscription for four days from February 21 to 24 to sell its 20 per cent shares at the rate of Rs30, face value Rs10 and premium Rs20. Each lot will be of 500 shares in an apparent bid to broad-base its shareholding and net in small investors. But the recovery was largely aided by the fresh heavy buying in the PTCL, the OGDC and leading bank shares followed by the reports of higher earnings and the market talk of enhanced payouts, analysts said.

"It was pretty difficult to predict as to where the current buying euphoria would take technical breather", they said 'there however, was a loud whispering that investors will hold on to their positions until all leading banks were out with their dividends".

Leading gainers were led by the International Industries, the Atlas Honda, and the Dawood Hercules, the Pakistan Cables, the Attock Refinery, the Pakistan Oilfields, the Packages, the Parke-Davis and several others. But the largest gains were noted in the AKD Securities and the Jahangir Siddiqui Capital Market Fund.

Losers were led by the Babri Cotton, the Gillette Pakistan, the Gadoon Textiles, the Lakson Tobacco, and the Treet Corporation, the Indus Dyeing, the Atlas Honda, the Berger Paints and some others, including the Siemens Pakistan, the National Refinery and Shafiq Textiles.

FORWARD COUNTER: Speculative issues on the forward counter also followed the lead of ready section under the lead of the PPL which spurted by Rs14 and the Pakistan Oilfields up by Rs19. Others also rose, major gainers being the OGDC, the PTCL, the Hub-Power and some others.