KARACHI, Feb 15: The KSE 100-share index on Wednesday bounced back on massive foreign buying in some leading oil and bank shares followed by local speculative support by the punters, signalling that the best is still to come.

The KSE 100-share index fully recovered the overnight loss and was quoted higher at its career-best level of 11,259.29, up 339.20 points or 3.11 per cent, adding Rs89 billion to the market capital at Rs3,215 billion.

From the opening bell, bulls fought a grim battle with bears and finally drove them out after having made heavy buying in index-related shares, notably OGDC, Pakistan Oilfields after higher interim earnings, Pakistan Petroleum, National Bank, PTCL and many others.

Incidentally, the index finished around the session’s highest, indicating that the current snap rally will continue in the coming sessions also until the next target if hit.

“Opinions about the future market direction are, however, divided,” a leading stock analyst Faisal Abbas said. “Some say the snap rally is triggered by only a couple of index-heavy weights and may falter, but others say the next target of 12,000 points is not that elusive now.”

In the backdrop of Tuesday’s violence incidents in Lahore, analysts are predicting the extension of the overnight sell-off as the market still needs to shed some more points, but the re-entry of bulls reversed the trend.

“The fact that the market has ignored the law and order situation in the Punjab reflects that investors are not inclined to be influenced by the negative fall-out of external incidents and are out to do business,” another analyst Hasnain Asghar Ali said.

But some others said the terribly high volatility of the market might not be a risk-free and could lead to further price erosions in the coming sessions, and investors should play safe before it settles down and takes normal course.

“Another technical correction may be overdue as outstanding positions in stock futures could do a lot of selling to square positions,” brokers said.

Leading gainers included Rafhan Maize and Siemens Pakistan, up Rs38.80 and Rs43, respectively, followed by PSO, Pakistan Petroleum, National Bank, MCB Bank, National Refinery, Central Insurance, Attock Petroleum, Dawood Hercules, Ferozsons Lab and Pakistan Oilfields, which posted gains ranging from Rs10.60 to Rs24.90, the largest rise being in Pakistan Oilfields.

Treet Corporation and AKD Securities off Rs8 and Rs14.50, respectively, followed by Island Textiles, Balochistan Wheels, Shell Gas, Gatron Industries and Jahangir Siddiqui Capital Market Fund, off Rs3 to Rs7.

Trading volume fell to 604m shares from the previous 737m shares a day earlier, but gainers forced a strong lead over losers at 252 to 133, with 32 shares holding on to the last levels.

PTCL topped the list of actives, up Rs1.75 at Rs68.10 on 117m shares, followed by OGDC, higher by Rs7.05 at Rs148.45 on 100m shares, Fauji Cement, firm by Rs1.30 at Rs27.75 on 35m shares, D.G. Khan Cement, up Rs4.75 at Rs141.25 on 34m shares, Pakistan Petroleum, higher Rs12.25 at Rs257.75 on 30m shares, National Bank, up Rs11.10 at Rs268.50 on 23m shares, and Pakistan Oilfields, sharply higher by Rs24.90 on 21m shares.

Other actives were led by Bank of Punjab, up Rs5.20 on 19m shares, Sui Southern Gas, firm by Rs1.50 on 17m shares and KESC, up 90 paisa on 15m shares.

FORWARD COUNTER: OGDC came in for active short-covering at the lower levels and rose by Rs7.10 at Rs149.40 on 32m shares, followed by PTCL, firm by Rs1.55 at Rs68.50 on 19m shares and Pakistan Petroleum, higher by Rs12.15 at Rs257.35 on 18m shares.