KARACHI, May 24: The KSE 100-share index on Friday soared by about nine per cent on massive buying taking a cue of peace signals from the Indian prime minister’s statement that the “sky is clear of war clouds.”

It ended the day at around 1,663.22 points as compared to the previous close of 1,527.58, up 135.64 points or nine per cent, reflecting the strength of leading base shares, notably PSO, PTCL and Hub-Power. The market capitalization soared by Rs30.564bn to Rs388.168bn.

The single-session gain of 135.64 points in the recomposed 100-share index is billed as the highest so far but appears to be more speculative than real as it was not matched by the volume figure or the objective external conditions.

But certainly it showed capacity to match the May 20 fall of 133 points on panic selling on war fears, if those fears are allayed.

Earlier, its forerunner had risen by 133.49 points or about eight per cent on Jan 2, 2000, and some others about 11 per cent in a single session.

“Peace with India may not be that close as the speculative forces made it look, the rubicon is still to be crossed,” analysts said, adding “prime minister Vajpayee’s statement also appears to be speaking of a grace period”.

“Vajpayee’s statement could be deceptive,” another stock analyst said. “He is playing hot and cold with the typical Pakistani sentiment to keep it on edge, letting it swing between hope and despair.”

His warning that lightning could strike even when the sky is clear signals many things but has certainly pacified the uproar created by his statement that the “time for a decisive fight has come.”

The market’s snap run-up demonstrated in more ways than one its inherent strength and its capacity to respond to positive news, notably leading to peace between Pakistan and India.

However, the next couple of sessions will show how the market behaves in the rapidly changing background scene but much will depend on the peace overtures by both the sides.

The entire list was strewn with smart gains as both the blue chips and the second-liners virtually raced towards their pre-reaction levels.

Top gainers were led by Nestle MilkPak, PSO, Shell Pakistan, Wyeth Pakistan and Lever Brothers, which recovered Rs9.10 to 54. Other good gainers included Central Insurance, Pakistan Oilfields, Siemens Pakistan, Packages, BOC Pakistan, Security Papers, Fauji Fertiliser, Engro Chemical, Millat Tractors and several others, rising by Rs3.00 to Rs8.15.

Losers were led by some second-liners, notably Aventis Pharma, Javed Omer, falling by one rupee to Rs1.10.

Trading volume was modest as investors were not inclined to sell in anticipation of a further rise in prices, falling to 102m shares from the previous 141m shares. Gainers forced a strong lead over the losers at 235 to 22, with 26 shares remaining unchanged.

The KESC topped the list of most actives, up Rs1.50 at Rs5.50 on 25m shares, PTCL, higher also by the same amount at Rs15.35 on 16m shares, Hub-Power, higher by Rs1.50 at Rs21.25 on 11m shares, FFC-Jordan Fertiliser, up by Rs1.50 at Rs6.50 on 9m shares and PSO, up Rs9.25 at Rs133.10 on 6m shares.

Other actives were led by Pak PTA, higher by Rs150 on 5m shares, Japan Power, up 90 paisa also on 5m shares, Sui Northern, higher by Rs1.50 on 4m shares and Dewan Salman, up Rs1.50 on 2m shares.

FUTURE CONTRACTS: Forward counter also showed bullish trend on strong support and leading shares, notably ICI Pakistan, FFC-Jordan Fertiliser, Engro Chemical and PSO posted gains ranging from Rs2.50 to Rs9.30 at Rs35.90, Rs6.00, Rs54.65 and Rs113.40 respectively on modest volumes.