KARACHI, Jan 2: The KSE 100-share index on Monday resumed the new year trading on an optimistic note amid hopes that the legacy of the previous bullish year may be sustained aided by positive indicators both from the corporate and economic fronts.

The breach of the index level of 9,600 during the maiden session of the new year shows that investors are out to set new records despite the presence of some psychological irritants on the political front.

As speculated earlier, stocks opened the new year account on a bullish note amid heavy buying in leading active shares aided partly by perceptions of further improved performance for the fifth consecutive year and partly by positive economic indicators.

The KSE 100-share index rose by 115.86 points or 1.21 per cent at 9,672.47, close to the session’s high as compared to 9,556.61 at the last weekend as leading base shares put on fresh smart gains under the lead of PTCL, National Bank and MCB followed by leading cement shares.

The robust new year opening reflects that investors have ignored fresh brewing tussle between the SECP and KSE over non-member chairman and is essentially guided by the broader market reform and the strength of an ambitious privatization programme of state-owned units.

The credit for a positive new year opening was largely shared by bank, cement, fertilizer and oil sectors, which closed around their circuit-breakers amid active new year covering purchases.

“The index seems to have begun its march to its previous all-time peak level of 10,300 or beyond on the strength of sell-off of leading state-owned oil units, positive economic growth and higher corporate earnings,” analysts predict. “No one is, however, clear about the negative fallout of the Kalabagh dam issue and developing situation in Balochistan.”

No one could, however, rule out the possibility of technical corrections after each rise, but the new year outlook appears to be a bit bullish despite the presence of some immediate market depressants, brokers said.

“A series of reforms to restore transparency in stock trading initiated by the SECP over the last couple of years, notably during 2005, is in the final analysis and will go a long way in netting new clientele having massive amounts of idle money with them,” some others said.

PTCL led the new year rally as the fears about the deal with Etisalat are allayed signalling that the worst is over and there are reasons to believe it could build up a strong forward base around this levels.

Plus signs dominated the list under the lead of Dawood Hercules and Attock Petroleum, up Rs12.50 and Rs14.80, respectively, followed by Sapphire Fibre, Packages, Clariant Pakistan, Glaxo-SKF, Thal Corporation, Abbott Lab and Dawood Hercules, which posted gains ranging from Rs5.70 to Rs12.50. There were many other good gainers also.

Gillette Pakistan and Unilever Pakistan fell by Rs10.45 and Rs65, respectively. Other notable losers included Quetta Textiles, Husein Sugar, Mustehkam Cement, Shell Pakistan, Central Insurance and Artistic Denim, off Rs3 to Rs9.90.

Trading volume rose to 322m shares from the previous 255m shares as advancing shares maintained a strong lead over losers at 241 to 128, with 46 shares holding on to the last levels.

PTCL topped the list of actives, up Rs1.60 at Rs67 on 40m shares, followed by National Bank, higher by Rs5.60 at Rs205.05 also on 40m shares, DG Khan Cement, up Rs3.25 at Rs109.85 on 32m shares, Lucky Cement, sharply higher by Rs4.15 at Rs88.05 on 28m shares, MCB, higher by Rs4.10 at Rs171.90 on 19m shares, Bank of Punjab, firm by Rs1.1.50 at Rs103.95 on 16m shares, OGDC, steady by 25 paisa at Rs118.25 and Faysal Bank, higher by Rs1.70 at Rs75.80 on 9m shares.

Other actives were led by Fauji Fertilizer Bin Qasim, up six paisa on 12m shares followed by Nishat Mills, higher by Rs1.70 on 8m shares.

FORWARD COUNTER: Lucky Cement led the list of actives on this counter, up Rs4.25 on 13m shares, followed by National Bank, higher by Rs5.30 at Rs207.40, and PTCL, firm by Rs1.30 at Rs67.80 on 8m shares.