KARACHI, Oct 26: Stocks were back on the rails on Friday as massive buying in pivotals drove bears out of the market, allowing the KSE 100-share index to breach through the psychological barrier of 1,400 for the second time during the week at 1,401.51 points.

In market parlance, the weekend rally always paves the way for the market to scale new highs after the trading resumes next week and indications are that the next index level could be around 1,475 points.

The KSE 100-share index recovered the overnight loss and was quoted higher by 38.71 points at 1,401.51 as compared to 1,362.80 a day earlier as leading bases share showed smart gains.

It was again the Hubco day as it posted its career-best gain of Rs1.95 at Rs23.60 on expectations of a good final dividend for the current year and an interim for the next year in its board meeting to be held on Nov 5, dealers said.

“There are not many options for the investing public after the weakness of the dollar and the gold, which have fallen to new lows excepting the stocks”, stock analysts at the W.E. Financial Services say “the current attractively lower levels of stocks are now the only option as the current buying euphoria suggests.”

This phenomenon is well-reflected in the spectacular rise of the KSE 100-share index, which has, over the week, risen by 137 points minus the Thursday’s correction, and predictions are that the best is yet to come, they add.

There was no trace of the overnight sell-off after the trading resumed as bulls were back in the market and made active short-covering at the lower levels, lifting the prices of pivotals sharply higher. However, toward the close of the session, jobbers and sundry speculators indulged in hasty selling halting the run-up.

Floor brokers said the market seems to have already passed through the needed correction and is expected to resume its strong upward drive when the trading resume next week.

“No one is inclined to take a bearish view at least for the near-term of the developing financial scenario and its likely impact on the economy after the Afghan war is over”, they added.

New credit lines, foreign debt write-offs by some of the Western countries and reports of a massive aid package to neutralize the negative impact of the Afghan war on Pakistan economy continue to inspire fresh covering purchases from all and sundry.

The market advance was led by most of the leading shares, notably in the energy and food sectors followed by chemical and insurance shares on the perception of higher earnings.

Big gainers were led by EFU Life, Adamjee Insurance, Pakistan Oilfields, Shell Pakistan, Lever Brothers and Nestle MilkPak, which scored gains ranging from Rs3.90 to Rs15, the largest being in Nestle MilkPak.

Other good gainers included ICI Pakistan, PSO, Attock Refinery, Aventis Pharma and Bolan Casting, which showed gains ranging from Rs2.30 to Rs3.

Losers were led by Merit Packaging and General Tyre, which suffered fall ranging from one rupee to Rs1.45, while others fell fractionally.

Trading volume fell to 210m shares from the previous 254m shares as sellers held on to their positions but gainers forced a strong lead over the losers at 96 to 51, while 38 held on to their last levels out of 185 actives.

Hub-Power led the list of most actives, up Rs1.95 at Rs23.60 on 110m shares, followed by PTCL, higher 50 paisa at Rs17.90 on 54m shares, PSO, up Rs2.85 at Rs113.75 on 7m shares, ICI Pakistan, higher Rs2.30 at Rs45.70 on 5m shares and Adamjee Insurance, up Rs3.90 at Rs42.90 on 4m shares.

Other actives included Engro Chemical, up 70 paisa on 4m shares, Sui Northern, firm by 30 paisa on 2.259m shares, MCB, up 60 paisa on 1.794m shares and Dewan Salman, steady 55 paisa on 1.438m shares.

FUTURE CONTRACTS: Forward counter also showed firm trend in line with the ready section where leading shares finished higher for both the October and the November settlements under the lead of PSO, which rose by Rs3 to Rs3.35 for both the October and the November contracts at Rs111 and 113 and Hub-Power followed it, up Rs1.16 and Rs1.13 at Rs22.66 and Rs21.73 on 1.431m and 1.507m shares respectively.