KARACHI, Oct 11: The KSE 100-share index on Tuesday broke the barrier of 8,600 points for the second time during the last six sessions, and heavy buying in leading base oil and bank shares followed by smart gains indicates that its next target of 9,000 points may not be that far off.

The major change in the market psychology was caused by PTCL, which has joined the band of market trend-setters after having ruled a bit sluggish amid conflicting reports of changeover of the management. Along with OGDC, it is one of the leading index heavy weights, and both in a buoyant mood could push it to any highs in a given time.

“The investor mourning posture in sympathy with the quake victims proved too short-lived as the very next day they started building castles on the dead bodies,” a leading analyst commenting on the post-quake snap rally said jokingly.

The KSE 100-share index finally ended higher by 101.71 points at 8,822.43 points as compared to 8,520.72 points a day earlier, reflecting the strength of leading base shares under the lead of PTCL and National Bank. It touched the highest of the day at 8,622.93 and the lowest at 8,520.72, which was the Monday’s closing. Market capital swelled to Rs2,488.040 billion, up Rs28.008bn from the previous close.

After having absorbed the shock of a massive death toll in the Saturday’s earthquake, stocks were back on the rails as investors covered positions on the cement sector, followed by predictions of higher sales when the reconstruction work in the devastated areas starts.

However, the post-quake grief and sorrow still dominated the corridors of the KSE as silent mourning for the victims continues — although some of the courageous investors and brokers resumed their normal operations.

“The economy could hardly remain unscathed after such a massive disaster, but it is too early to say something of its magnitude,” analysts said. “It would take time to filter into the real growth and export figures.”

Bulk of the support originated from the speculative forces, who continued to build-up long positions in cement, bank, and oil sectors, not as a genuine investment but for instant capital gains.

Some other sectors, including textiles, and those which will be directly associated with the reconstruction work, also remained in active demand and generally ended further higher.

Analysts’ predictions of a big post-quake shakeout in the share market proved incorrect as investors were back in the rings, of course, after having reconciled with the “will of God”.

Both National Bank and MCB hit their so far career-best level at Rs166.65 and Rs114.60, respectively, on reports of higher earnings and linked by handsome dividend, while the revival of demand in PTCL at the lower level was another positive factor.

National Refinery was the leading gainers, up Rs14.35, followed by reports that Attock group of companies has taken over the management of the company after having paid the final bid money. Pakistan Oilfields followed it with a gain of Rs14. Wyeth Pakistan fell by Rs25 and was leading among the losers.

Leading gainers were led by Attock Petroleum, Attock Refinery, Pakistan Oilfields, and National Refinery, up by Rs9 to Rs14.35, followed by Arif Habib Securities, National Bank, United Sugar, Pakistan Refinery, Suzuki Motors, MCB, and National Bank and many others, up by Rs6 to Rs7.90.

Losses on the other hand were fractional, barring Blessed Textiles, Bolan Casting, Atlas Honda, Huffza Steel, Security Papers, Glaxo-SKF, Siemens Pakistan and Javedan Cement, off Rs2 to Rs3.20.

Trading volume rose to 339m shares from the previous 262m shares as gainers maintained a comfortable lead over losers at 169 to 126, with 41 shares holding on to the last levels.

National Bank topped the list of most actives, sharply higher by Rs7.90 at Rs166.65 on 64m shares, followed by DG Khan Cement, easy 55 paisa at Rs88.10 on 42m shares, MCB, higher by Rs6.95 at Rs144.60 on 36m shares, Fauji Fertilizer Bin Qasim, lower 20 paisa at Rs36.60 on 26m shares, PTCL, higher by Rs1.30 at Rs64.40 on 24m shares, OGDC, firm by five paisa at Rs118.40 on 20m shares and Faysal Bank, up Rs2.25 at Rs69.25 on 17m shares.

Other actives included Fauji Cement, lower 40 paisa on 17m shares, Nishat Mills, up Rs1.10 on 9m shares, and Lucky Cement, off 65 paisa on 8m shares.

FORWARD COUNTER: Bank of Punjab led the list of actives on the cleared list, up Rs4.55 at Rs104.05 on 20m shares, followed by National Bank, higher by Rs8 at Rs168.40 on 17m shares, and DG Khan Cement, firm by five paisa at Rs88.60 on 14m shares.