KARACHI, Oct 17: The KSE 100-share index on Monday briefly crossed the barrier of 9,000 points followed by active speculative buying on selected counters aided by an increase in the equity exposure limit of banks to 30 per cent from the previous 20 per cent and perception of a massive bank participation in daily trading.

But it failed to sustain the earlier peak level of 9,004.10 and finished well below it at 8,900.90, as compared to 8.863.87 at the last weekend session, up 37.03 points. Bank shares were traded further higher under the lead of Bank of Punjab, which rose higher by Rs5.50 at Rs115.75.

“I think a mild correction is overdue before it hits the next barrier of 9,000 points,” predicts a leading broker, adding that its long-term outlook appears to be bullish.

But it is too early to predict about its onward march beyond the 9,000 index levels, although say it is heading to better its previous record of 10,300 within the current year, technical corrections here and there notwithstanding.

“Banks and financial institutions have enormous liquid cash at their disposal and the lure of capital gains creates a fresh buying euphoria reminiscent of early year boom conditions,” some others said.

They said that as the increase in limit for the forward counter in futures trading, they did not foresee any big change in bank shares in the ready section as most of them were already ruling at their career-best levels.

“With just one masterly stroke, the State Bank has provided a level-playing field to both the banks and bulls,” they said. “The small investor who will tread on the set course dictated by the banks will be chief beneficiary.”

“The central bank’s move could fuel the current bull-squeeze in bank as well as other shares, which have the potential of capital gains,” analysts said, adding that the facility came at a time when the market was already under the thumb of leading bulls.

The question being debated is whether or not some of the leading shares which are already ruling around their saturation points will rise further or the neglected one among them will get the needed boost.

However, banks and DFIs have wider choice to go beyond the bank shares but one thing is clear that the total impact of the current central bank move could significantly add to the underlying strength of the market, brokers said.

Most of cement shares, which are billed the chief beneficiary of the Oct 8 quake after the reconstruction work in those areas starts, still have the potential of capital gains and so are some bank, energy and textile shares.

Leading gainers were led by Siemens Pakistan and Wyeth Pakistan, up Rs19 and Rs20, respectively, followed by UBL, Bank of Punjab, United Sugar, Mustehkam Cement, Al-Ghazi Tractors, Engro Chemicals, Abbott Lab, ICI Pakistan, National Foods, Pakistan Oilfields and Arif Habib Securities, which posted gains ranging from Rs4 to Rs14.35.

Prominent losers were led by Attock Refinery and Nestle Pakistan, off Rs11.85 and Rs21, respectively. Others to follow them included Gul Ahmad Textiles, Attock Cement, Atlas Honda, Honda Atlas, Dawood Hercules, Glaxo-SKF, PNSC, AKD Securities, PSO, Dawood Hercules, and National Refinery, off Rs3 to Rs10.

Trading volume fell to 300m shares from the previous 344m shares but gainers maintained a fair lead over losers at 160 to 136, with 44 shares holding on to the last levels.

PTCL came in for active selling but ran into profit-selling, off 70 paisa at Rs65.50 on 75m shares, followed by National Bank, higher by Rs1.45 at Rs168 on 30m shares, MCB, up 95 paisa at Rs151.60 on 25m shares, Pakistan Oilfields, higher by Rs13 at Rs428 on 22m shares, Bank of Punjab, up Rs5.50 at Rs115.75 on 15m shares, Lucky Cement, higher by Rs3.10 at Rs67.05 on 14m shares and PSO, off Rs5.30 at Rs414.50 on 8m shares.

Other actives were led by Fauji Fertilizer Bin Qasim, lower 25 paisa on 12m shares, Fauji Cement, off 75 paisa on 11m shares and Faysal Bank, higher by Rs1.65 on 9m shares.

FORWARD COUNTER: OGDC led the list of actives on this counter, up Rs1.85 at Rs124.80 on 28m shares, followed by PTCL, lower Rs1.35 at Rs67.25 on 18m shares, and Pakistan Petroleum, easy by 20 paisa at Rs209.80 on 16m shares.