KARACHI, May 27: Stocks on Monday rose further across a broad front amid hopes that the peace initiative launched by the big two could defuse the prevailing border tension between Pakistan and India, ripping apart the looming thick war clouds. The index recovered another 52.24 points or 3.14 per cent at 1,715.46.

The investors also derived strength from the perception that the intervention of the big two could well mean that the war hysteria will fade out during the next couple of weeks as the “peace offensive really aims at a working relationships between the two close neighbours”.

“The goal of peace may still remain elusive but things appear certain that the intervention of the big two, notably Russia, considered to be an ally of India, has altogether changed the border scenario,” comments a leading member of the KSE on the new emerging situation in the sub-continent.

Investors were quick to find the cue for the future political scene and hated to miss the rising market that too at the still attractive levels.

“I don’t, think there is a possibility of snap reversal”, one broker predicts “the process parleys set in motion may not lead to renewed confrontation between the two nuclear nations”.

That was perhaps why investors ignored the reports of fresh casualties from the LoC in cross-firing and maintained their moping operations at the attractively lower levels, he adds.

After turning in highly erratic movements early in the backdrop of a cross-current of negative and positive news, the KSE 100-share managed to finish with final smart recovery of three per cent or 52.24 points at 1,715.46 point.

“It has risen by about 12 per cent during the last two sessions, reflecting the inherent strength of the market,” brokers say “it also signalled how the market is yearning for peace and calm on the borders of the two nuclear neighbours”. The breach of the psychological barrier of 1,700 points is always considered a good omen for the market’s sustained run-up.

An idea of massive buying at the lower level may well be had from the fact that Hub-Power finished the session close to its circuit breaker ceiling limits. ICI Pakistan, Engro Chemical, FFC-Jordan Fertilizer and several other blue chips also showed smart rallies on heavy buying.

As a matter of fact that the fresh sustained run-up was led by the energy sector amid hopes of a substantial increase in sales after the May 15 sharp increase in petroleum prices. All rose in unison, leading among them being Shell Pakistan, PSO, Pakistan Oilfields and Pakistan Refinery.

The sentiment in part was also aided by the President’s address to the nation late in the evening. Analysts say the President may also invite Indian leaders for talks on the current issues in his speech.

The recovery was allround and reflected that investors are now sure that border situation could ease during the next couple of weeks and sound market fundamentals will play a dominating role.

Big gainers were led by Engro Chemical, PSO, Shell Pakistan, Wyeth Pakistan and BOC Pakistan, which posted gains ranging from Rs4 to Rs6. They were followed by Kohinoor Weaving, Sapphire Textiles, Mari Gas, Security Papers and several others, up by Rs2.15 to Rs3.45.

Losses on the other hand were fractional barring Treet Corporation and Lever Brothers, which fell by one rupee to Rs10.

Trading volume rose to 174m shares from the previous 102m shares as advancing shares managed a strong lead over the losing ones at 166 to 105, with 29 holding on to the last levels.

The most active list was topped by PTCL, up Rs1.25 at Rs16.60 on 53m shares followed by Hub-Power, higher by Rs1.55 at Rs22.80 on 46m shares, PSO, up Rs4.20 at Rs137.30 on 18m shares, FFC-Jordan Fertilizer, steady by 35 paisa at Rs6.85 on 14m shares and KESC, lower 45 paisa at Rs5.05 on 9m shares.

Other actives were led by Sui Northern, up 45 paisa on 8m shares, Dewan Salman, firm by 30 paisa on 3m shares, Engro Chemical, higher by Rs4 also on 3m shares, ICI Pakistan, up 35 paisa on 2.416m shares and Pak PTA, lower 30 paisa on 2.229m shares.

FUTURES CONTRACTS: Forward counter also followed the lead of the ready section where current favourites finished with smart recoveries, major gainers among them Engro Chemicals and PSO, both settlements, the ruling May and the distant June contracts, up by Rs3.80 to Rs5.05 respectively.