KARACHI, April 15: The KSE 100-share index on Thursday broke the barrier of 5,500 points as leading base shares came in for fresh strong support and tended further higher under the lead of PTCL and OGDC. The net rise was 49.18 points at 5,507.60, lifting market capital to Rs1,471bn.

The market witnessed a virtual run on most of the current favourites being quoted at the highly inflated levels amid predictions that the award of cell phone licences to two foreign companies could lead the way for fresh foreign investment in other sectors also.

The final close was around 5,507.60 points, up 49.18 points over the previous close of 5,458.42 amid hectic trading as the volume figure soared to 862m shares.

It was the second breach of the barrier during the last four sessions and reflects bulls are not inclined to take even a technical breather. The final push came after the Hub-Power joined the other heavy weights PTCL and OGDC and now it could well prove the take off point for the next target of 5,600 and then onward sustained journey to the final point of 6,000.

All the sectors participated in the market run-up, although bulk of the buying remained confined to the current favourites, which in unison accounted for about 70 per cent of the total volume.

A section of investors also shifted their buying to the low-priced sectors notably textiles and sugar where most of the shares posted fresh sharp gains amid active trading.

In addition to the PSO, which came in for strong support at the lower levels, fertiliser shares also performed well under the lead of Engro Chemicals and Fauji Fertilizer on reports of higher consumption of urea during the first quarter of the current year ending March 31, 2004.

For the second session in a row, PTCL led the market advance on heavy buying aided by reports that its management has given cell phone licences to two foreign companies including the Syrian one at $291 million each.

"$600 million foreign investment in Pakistan's telecom sector is a breakthrough," analysts said. "It could well prove a prelude to heavy foreign direct investment in other sectors, notably the energy one."

"Whether or not the current deal will have a positive impact on Pakistan's credit rating in future or open the flood-gate of foreign investment, it will certainly push price of Pakistan Oilfields further higher as one of the successful bidders has the support of the Saudi Pharaon group as it has a stake in it," analysts said.

The award of cell phone licence to two companies out of the nine short-listed companies indicates that foreign investors have confidence in the government policies and their investment are safe here.

Plus signs dominated the list, major gainers being Rafhan Maize, Millat Tractors, Thal, National Refinery, Pak Elektron, Abbott Lab, Aventis, Cherat Papers, Honda Atlas, which posted gains ranging from Rs7.25.

But largest rise was noted in Siemens Pakistan, HinoPak Motors, Atlas Battery, Glaxo-SKF and Shell LPG, up by Rs8 to Rs19.50. Losses on the other hand were mostly fractional barring JWD Sugar, Kohat Cement, Atlas Honda, Noon Pakistan, Tri-Pack Films, Packages and Attock Refinery, which suffered fall ranging from Rs2.20 to Rs4.10.

Trading volume soared to its third career-best level of 862m shares, all-time high record being 962m shares established last year in August. Gainers forced a strong edge over the losers at 260 to 122, with 52 shares holding on to the last levels.

DG Khan topped the list of most actives, up Rs2.70 at Rs60.30 on 120m shares followed by Hub-Power, higher 55 paisa at Rs37.90 on 104m shares, Fauji Cement, higher by 80 paisa at Rs16.30 on 88m shares, PTCL, firm by 15 paisa at Rs44.45 on 78m shares and Nishat Mills, higher by Rs3.25 at Rs57.70 on 50m shares.

Other actives were led by Lucky Cement, up Rs1.60 on 47m shares, OGDC, firm by 30 paisa on 33m shares, Dewan Salman, steady by 30 paisa on 32m shares, PIAC, up 70 paisa on 29m shares and ICP SEMF, higher by Rs1.05 on 26m shares.

FORWARD COUNTER: Hub-Power was actively traded, up 70 paisa at Rs38.15 on 10m shares followed by PTCL, steady by 10 paisa at Rs44.40 on 9m shares, Nishat Mills, higher by Rs3.50 at Rs58.15 on 5m shares, PSO, up Rs2.50 at Rs285.75 on 3m shares and Engro Chemical, higher by Rs1.55 at Rs104.50 also on 3m shares. Fauji Fertilizer rose by Rs1.75 at Rs125.30.

DEFAULTER COS: Trading activity on this counter was relatively slow as leading investors remained busy in the ready section owing to handsome capital gains. Standard Bank, however, came in for fresh support and rose by 30 paisa at Rs9.50 on 0.713m shares.