KARACHI, Sept 27: Stocks on Monday resumed trading on a higher note as investors were not inclined to miss the rising market and continued to build up long positions at the lower levels.

The KSE 100-share index confidently breached through the third consecutive barrier of 5,100 and is apparently treading to its pre-reaction level of 5,600 not in a very distant future.

Current attractively lower levels of PTCL, OGDC and Pakistan Petroleum, the heavy weights trio could make the task of the bulls well within reach, some brokers predict. But some others claim investors will think twice before crossing the index level of 5,200, although much will depend on the future buying strategy of the financial institutions, notably in the backdrop of some investment relieves given by the State Bank to banks and DFIs and corporate announcements.

Stocks remained in a bullish frame of mind followed by steady inflow of fresh buying at the still attractively lower levels aided partly by expectations of higher dividends and some investment relieves to banks and DFIs by the central bank.

The KSE 100-share index firmly settled well above the barrier of 5,100 at 5,125.04 as compared to weekend's 5,080.67, reflecting the strength of the leading base shares.

The market is still in an oversold position on a number of counters, notably cement and banks and on some leading sectors and indications are that official moves have been initiated to keep the market in a good shape beyond the current index level, some brokers believe.

The board meetings of some leading companies including PTCL, Sui Southern and some others are due during the next couple of sessions and both the financial institutions and the leading investors are not inclined to miss the still attractive market with a view to realizing quick gains, floor brokers said.

Central bank circular at the end of the last week allowed banks and DFIs to carry over the "held-to-maturity securities" at amortized cost and will not require fresh revaluation. The relief will enable many to further their balance sheets and to others who suffered massive losses on investment, notably in PIBS, to shift such securities into "held-to-maturity" (HTM).

Analysts said the central bank has earlier, warned banks to limit their investments in Pakistan Investment Bonds (PIBS) and the current move could give them a certain measure of freedom to operate in the share market more confidently in the weeks to come.

However, there was a relative lull on the PTCL front, which at the fag-end of the last week set the trend for the market to after having attracted massive support ahead of its board meetings on Sept 28 or 29.

DG Khan Cement on the other hand came for renewed support amid market talk of a higher dividend plus bonus shares and led the list of actives, while on the other hand oil giants both OGDC and Pakistan Petroleum rose further, the latter being in the forefront.

Plus signs, therefore, dominated the list under the lead of Javed Omer, Atlas Honda, which rose by Rs20.45 and 14.05, followed by Shezan International, Ferozsons Lab, Packages, Berger Paints, Clariant Pakistan, Pakistan Engieering, Exide Battery, and Lakson Tobacco, which posted gains ranging from Rs5.45 to Rs13.95.

Losers were led by IGI Insurance and Gatron Industries, off Rs5.20 and Rs9.Other prominent losers included Unilever Pakistan, EFU Life, Fazala Textiles, Noon Sugar, and Colgate Pakistan, off Rs3.50 to Rs5.

Trading volume suffered sharp decline at 271m shares as compared to 237m shares at the last weekend but gainers maintained a firm lead over the losers at 225 to 95, with 45 shares remaining pegged at the last levels, out of 365 actives.

DG Khan Cement topped the list of actives, up Rs1.15 at Rs57.45 on 27m shares followed by Fauji Cement, higher by Rs1.50 at Rs15 on 25m shares, OGDC, steady by 30 paisa at Rs60.60 on 22m shares, National Bank, steady by five paisa at Rs68.55 on 18m shares, and Pakistan Petroleum, higher by Rs2.25 at Rs115.25 on 16m shares.

Other actives included Lucky Cement, higher by 95 paisa on 12m shares, Fauji Fertilizer Bin Qasim, up 50 paisa on 11m shares, Sui Northern Gas, steady 20 paisa on 10m shares and Maple Leaf Cement, higher by Rs1.25 on 8m shares.

FORWARD COUNTER: Speculative issues on this counter followed the lead of their ready counterparts and generally finished with fresh gains under the lead of PSO, which recovered Rs3.15 at Rs250,75 and some others.