KARACHI, Oct 19: Stocks finished the weekend session on an optimistic note on strong renewed buying by both the leading institutional traders and the foreign funds, sending signals that the worst may be over in the changing economic scenario.

Textile, energy, paper and almost all the leading shares including Engro Chemical, ICI Pakistan led the market advance, pushing it to a viable level both in terms of size of the business and the range of stocks (above 200 after a long time), which come into daily trading.

It is very unusual for even the most viable world stock markets to behave contrary to political undercurrents or the war-like situations but the KSE has demonstrated in more than one way that it could. No one, however, perceive that the rally could be deceptive.

Over the week, the KSE 100-share index has risen by more than 70 point or six per cent just in the wake of reports of extensive coalition bombing in Afghanistan and waves of new refugees crossing into safe havens in Pakistan. Despite being sensitive to negative external developments, there are no signs of panic among the investors and that reflects investor confidence.

The fact that the index has not only sustained the support level of 1,250 but ended well above it analysts at the W.E predict it could well prove a turning point in the market’s upward direction.

The close at 1,267.05 that too at the weekend session reflects that leading bulls are not inclined to take even a technical breather and are out to play above the resistance index level of 1,250.00. The net rise was 13.41 points.

“I presume the index will fluctuate between 1,450 and 1,500 level not in the very distant futures,” says a leading broker basing his predictions on the future market behaviour of the leading base shares, notably Hub-Power. “Together with PTCL, it could take the index to any highs where both will like it to.”

Both, the PTCL and Hubco have a weightage of over 40 per cent in it, and that could well mean an increase of a few paisa in them could keep the index rising each session despite poor performance of the broader market.

“Second thoughts about the ongoing Afghan war and its negative impact on Pakistan trade and industry may creep in investor mind anytime but a major change in the basic fundamentals and the presence of the foreign fund buying will never allow them to leave the arena,” most stock analysts believe, and predict that the current lower levels provide an attractive bait for those who are inclined to make genuine buying.

Selective support on all the blue chip counters, notably the fertilizer sector was evident, which in turn evoked good sympathetic buying on the other counters. Engro Chemical and ICI Pakistan were among the top performer, up Rs.2.10 and 3.20 on strong foreign buying.

Plus signs were strewn all over the list, major gainers being Blessed Textiles, Din Textiles, Faisal Spinning, Gul Ahmad Textiles, Cherat Paper, Security Paper and Lever Brothers, which posted gains ranging from Rs.2.55 to 8.35.

Nestle MilkPak was leading among the losers, off Rs.4 followed by Shell Pakistan, which was quoted ex-dividend at Rs.183.25. Others fell fractionally.

Trading volume fell to 83m shares owing to the absence of sellers but gainers maintained a strong lead over the losers at 120 to 40, out of 204 actives.

Hub-Power again led the list of actives, up 20 paisa at Rs.18.80 on 26m shares, one third of the total, followed by PTCL, unchanged at Rs.15.65 on 14m shares, ICI Pakistan, sharply higher by Rs.3.20 at Rs.40.50 on 10m shares, Engro Chemical, up Rs.2.10 at Rs.51.45 on 8m shares and Sui Northern firm by 45 paisa at Rs.9.55 on 6m shares.

PSO led the list of other actives, up Rs.1.50 at Rs.104.00 on 4m shares, Nishat Mills, higher 40 paisa on 3.423m shares, Dewan Salman, firm by 35 paisa on 3.171m shares, Adamjee Insurance, off 55 paisa on 1.330m shares and Fauji Fertilizer, easy five paisa on 1.109m shares.

FUTURE CONTRACTS: Bulk of the activity remained confined to Hub-Power, which accounted for 2m shares, up 10 paisa at Rs.18.75. PTCL was traded unchanged at Rs.15.70 on 0.793m shares. PSO and Engro Chemical were leading among the gainers, up Rs.1.80 and 2.50 at Rs.104.70 and 51.50 respectively on modest turnover.