KARACHI, Jan 31: Price flare-up on the stock market on Thursday further intensified as investors continued to build up long positions in a broad-based rally inspired by perceptions of a robust economy and steady foreign buying.

A major breakthrough in cement export to Afghanistan was violently welcomed by the investors as it could open the way for the other industries when the reconstruction work gears up there.

“Alone in the cement sector, the industry is said to be eyeing an ambitious export figure of $3bn during the next couple of years if all goes well the industrialists perceptions,” predicts a leading KSE member.

About 30m shares changed hands in this sector including 18m shares in Lucky Cement and 9m in DG Khan Cement, up Rs.1.35 and 1.25 respectively.

The market’s buoyant mood was well-reflected in the rising value of the KSE index powered by spectacular rise in the leading index shares, notably PTCL and Hub-Power.

The KSE 100-share index during the current month has risen by over 300 points or 20 per cent on massive allround buying in the leading base shares, notably from the foreign funds on the perception of a robust economy and more financial benefits as US-led coalition partner. Already it has added about Rs.50 billion to the market capitalization at Rs.370 billion.

It not only breached through the barrier of 1,600 but settled well above at 1,620.18, up 27.07 points, reflecting that the best has still to come.

“The buying euphoria is unprecedented and is reminiscent of the boom conditions of the mid-90s, when the KSE 100-share index had hit its career-best level of 2,662 points,” stock analysts at W.E.Financial said.

“The important thing to note is that it is matched by the larger daily traded volume, signalling the price flare-up is genuine, not speculative.”

The reports that DG Khan Cement and Lucky Cement started export of cement to Afghanistan have further added depth to stock trading as most of the undervalued shares in this sector are in heavy demand and rising steadily.

A below market expectations of 10 per cent final dividend by the Fauji Fertilizer making the total for the year to 85 per cent (previous 80 per cent) as it has already paid three interims totalling 75 per cent worked against its sentiment.

“The market may pass through technical corrections here and there but could maintain its sustained run-up backed by allround bullish news and the strong presence of foreign buying,” stock analysts at the AHRL predict.

Advancing shares maintained a strong lead over the losers under the lead of Wyeth Pakistan, which resumed its upward drive and ended with a fresh rise of Rs.18 at Rs.265.

Knoll Pharma, BOC Pakistan, Shell Pakistan, IGI, and Abbott Lab were other among the leading gainers, up Rs.2.60 to 5. Adamjee Insurance, Kohat Cement, National Refinery, Glaxo-Wellcome, Century Paper, International Industries and First ICP Mutual Fund also showed good gains ranging from Rs.1.50 to 1.70.

Losses on the other hand were fractional, barring Al-Ghazi Tractors, Delta Insurance and Pakistan Oilfields, falling by Rs.2 to 4.95.

Trading volume soared to 276m shares as range of stocks, which came in for trading further extended to 275,184 being on the plus side and only 45 on the minus side.

Hub-Power led the list of most actives on strong foreign buying, up 70 paisa at Rs.23.40 on 90m shares, PTCL, firm 15 paisa at Rs.17.85 on 45m shares, Sui Southern, higher 80 paisa at Rs.13.05 on 23.43m shares, Lucky Cement, sharply higher by Rs.1.40 at Rs.11.90 on 18m shares and Japan Power, up 70 paisa at Rs.4.30 on 4m shares.

Other actives were led by DG Khan Cement, up Rs.1.25 on 9.141m shares, FFC-Jordan Fertilizer, firm by 35 paisa on 8.795m shares, Dewan Salman, up Rs.1.40 on 8.701m shares, PSO, steady by 25 paisa on 7.596m shares and KESC, higher 55 paisa on 5.135m shares.

FUTURE CONTRACTS: Steady conditions were witnessed on this counter, as, barring ICI Pakistan and Engro Chemical, which fell by 25 and 40 paisa at Rs.46.25 and 60.35 on 0.166m and 0.312m shares, all other shares rose modestly.