KARACHI, Aug 29: Stocks on Monday resumed trading on a higher note as investors continued to build up long positions on selected counters under the lead of oil shares followed by reports that world crude price has touched the record level of $70 per barrel and the banking sector posts higher earnings.

Higher dividend and bonus shares by some of the leading companies were also enthusiastically received by investors amid hopes that others leading companies will follow the suit, adding to CFS-led buying euphoria.

The market’s bullish mood was also well reflected in the KSE 100-share index, which after breaching through the barrier of 7,600 points, was close to its next target of 6,700, as leading base shares, including OGDC, PTCL and some others, remained under bull-squeeze.

It finally finished with a fresh rise of 104.90 points or 1.38 per cent at 7,690.60, close to the day’s best bid, apparently heading towards its new chart points of 8,000, adding Rs28.00bn to the market capital at Rs2,191.496bn.

What seems to have given a pleasant surprise to even well-informed punters was the news of 30 per cent bonus shares by the Bank of Punjab, 25 per cent interim bonus shares by Glaxo-SKF, which generated a lot of anticipatory buying on the related counters.

Pakistan Petroleum has been in the news since January this year and despite some bad news, including a forced shutdown and failure of the offshore drilling, it managed to declare a higher final dividend of 30 per cent. Its shares value rose by Rs5.80 at Rs175.85 on 14m shares.

Analysts said that with the continuous funding system (CFS) in place, the last week’s performance reflected that the capped amount of Rs25 billion may prove too small in a buying market aided by higher corporate announcements.

At the fag-end of the last week, the funds used under this head totalled Rs23 billion, slightly below the capped figure of Rs25 billion.

However, market leaders said that investors should play within the limits, as any deviation, including the ‘inspired one’, could create many problems for the budding rally, they said.

“One thing is clear that some of the exponents of badla may be disappointed as the CFS is being accepted as an efficient replacement of the old funding system, difference of opinions on the issue notwithstanding,” some others said.

The dividend-driven rally could gain in stature during the next couple of weeks as some of the best announcements from the leading companies are still to come.

Oil and bank shares were actively traded and led the market advance in response to news that the world crude oil price has touched the high mark of $70 per barrel, Shell Pakistan, which rose by Rs19.10, was leading among them. Other MNCs, which rose sharply, were Siemens Pakistan and Shell Pakistan, up Rs19.90 Rs19.10, respectively, followed by Arif Habib Securities, Pakistan Oilfields, Ferozsons Lab, Nestle MilkPak, and National Refinery, which posted gains ranging from Rs7.10 to Rs11.50.

Other good gainers included MCB, National Bank, Gatron Industries, Attock Petroleum, Pakistan Petroleum, Millat Tractors, United Sugar, Berger Paints, and National Food, up Rs4 to Rs6.70.

Shell LPG Gas and Wyeth Pakistan were leading among the losers, off Rs14.90 and 21.75 at Rs335 and Rs893.25, respectively, followed by Premier Sugar, Central Insurance, Bolan Castong, Haroon Oil, Colgate Pakistan, Merit Packaging and Glaxo-SKF, off Rs3 to Rs6.70.

Trading volume rose to 357m shares from the previous 296m shares as gainers and losers were about evenly matched, with 38 shares holding on to the last levels.

The most active list was topped by OGDC, higher by Rs2.30 at Rs113.65 on 62m shares, followed by National Bank, up Rs4.80 at Rs112.50 on 61m shares on higher earnings, PTCL, steady by five paisa at Rs65.60 on 47m shares, Fauji Fertilizer Bin Qasim, up 75 paisa at Rs34.90 on 41m shares, MCB, higher by Rs4.95 at Rs103.95 on 25m shares, and Pakistan Oilfields, up Rs10.95 at Rs348.75 on 23m shares.

Other actives were led by the Bank of Punjab, up Rs4.95 at Rs95.80 on 16m shares, Pakistan Petroleum, higher by Rs5.80 at Rs175.85 on 14m shares, DG Khan Cement, firm 65 paisa at Rs.60.05 on 16m shares, and Nishat Mills, higher by Rs2.75 at Rs80 on 9m shares.

FORWARD COUNTER: OFDC also led the list of actives on this counter, higher by Rs2.05 at Rs114.65 on 12m shares, National Bank, up Rs4.65 at Rs113.60 on 11m shares, Pakistan Petroleum, higher by Rs6 at Rs177.80 also on 11m shares.