The KSE 100-share index is steadily rising to its next target of 4,800 points. Bulls are not inclined to leave the arena at a time when all basic fundamentals are bullish, and point towards a sustained run-up - after technical consolidations here and there.

Although, late selling in the leading energy shares followed by reports that Pakistan may import diesel oil from India to save on freight costs as compared to Gulf destinations, combined with the week-end profit-selling pushed the market into the downward territory at the fag-end of the week. The overall closing remained on the higher side.

Leading investors, notably financial institutions remained active buyers, both at the rise and at the fall, evoking a lot of sympathetic buying from the retailers and some genuine investors on those counters where potential of capital gains still exist.

The stocks, therefore, remained in an upbeat mood as the prevailing buying euphoria gathered fresh momentum followed on the reports of higher corporate earnings and expectations of enhanced dividend and a relative calm on the local and Indian political fronts.

An idea of buying flurry, both, in the highly overvalued shares and the second-liners, may well be had from the fact that no investor from the financial institutions or the brokerage houses was inclined to miss the bandwagon.

"I don't rule out the possibility of a major debut by foreign investors as their demand of $20 billion worth market capital has been met during the last week, providing them the needed depth", said an analyst adding, "since long foreign funds have been eyeing this level and the current boom-like conditions are reflective of this fact and is essentially based on this perception".

New records both in terms of index and market capital are established over the week as investors did not take a technical breather, despite higher carryover charges of 20 per cent and the market's highly overbought position, analysts said.

President's address to the joint session of the Parliament last week amid fears of violent agitation by the opposition has been said to be another supporting factor fuelling the initial run-up of the KSE index beyond the 4,700-point level.

The market capital swelled to Rs1,246 billion from the previous Rs1,002.487 billion after the addition of the massively-capitalized Oil and Gas Development Company (OGDC) to the total, making the market more attractive for foreign investors owing to the required depth.

The KSE 100-share index also confidently breached through the crucial psychological barrier of 4,700 points and managed to finish close to its next target of 4,800 - possibly by early next week. It finally ended around 4,762.37, up 78.25 points. At one stage it went close to touch the index level of 4,800 after hitting the week's peak level of 4,792 points.

The early run-up in the index is attributed to the credible performance of the leading base shares, including the PSO and some others, notably the Sui Northern Gas, Dewan Salman, the KESC.

It is now pretty sure that the market will sustain its current levels in the weeks to come, backed by the reports of higher earnings and good dividend and improving economy.

But there is a possibility of a major shift in investor-perception about the capital gains and in the process some of the leading secondliners having potential of further capital gains could well be the centre of activity in the sessions to come, brokers said.

A good bit of profit-selling in the Pakistan Oilfields, the Engro Chemical, the Fauji Fertilser, the Sui Southern Gas and some others also worked against the underlying sentiment.

All eyes remained focused on the OGDC, which came on the ready board after having been trading around Rs53 on the forward counter since it was made a provisional debut last month.

Contrary to general predictions of a bullish opening, it encountered an avalanche of alternate bouts of buying and selling unsettling the market's firmly established upward stance, analysts said.

"Owing to its massive capital outlay and the size of the floating stock of 13 million shares, it has the capacity and the role to play as market trend-setter", they said, adding "the future stock trading is expected to be guided by its performance on the floor".

However, it is generally believed after having sent shock waves among the small investors, to rise to its previous level as the big ones will try to grab the floating stock at the lower levels.

"I don't think bulls have any reason to stay away after the President's address", said a leading stock broker, "it may not necessarily be a market factor, bulls should have made it one".

Prominent gainers are led by the ICP SEMF, the Haroon Oils, the PSO, the Sitara Chemicals, the Pakistan Cables, the Mitchell's Fruits, the PSO and the Unilever Pakistan, the Shell Pakistan, Javed Omer, the Island Textiles, the Millat Tractors, the Rafhan Maize, the Nestle MilkPak, the Siemens Pakistan and many others.

Losers are led by the Sana Industries, Ahmed Hassan Textiles, the Gillette Pakistan, the Century Papers, the Indus Motors, and the Gatron Industries, the Packages, the Aventis, the Parke-Davis, the Clariant Pakistan, and the Clover Pakistan.

Trading volume showed a sizeable expansion as some of the secondliners were actively traded at the current levels, notable among them being the D.G.Khan Cement, the PIAC, the Dewan Salman Fibre, the Pak PTA, the Sui Northern Gas and some others.

FORWARD COUNTER: Speculative issues on the forward counter on the other hand failed to sustain the previous week's run-up and fell on the weekend selling under the lead of the PSO, the Sui Northern Gas and the Engro Chemical.