KARACHI, March 1: Stocks on Tuesday resumed their upward drive boosted by heavy buying in the energy shares at the lower levels aided by reports of higher corporate earnings and the proposed PSO sell-off before June.

The KSE 100-share index, which has dropped below the resistance level of 8,300 recovered to finish around 8,404.52, up 144.46 points over the previous close of 8,260.06. The market capital also swelled by Rs37.490bn, well over Rs2,300 at 2,333bn as compared to Rs2,295bn a day earlier as both OGDC and PPL showed fresh sharp increase.

The breach of the two successive barriers of 8,300 and 8400 in a single session reflects that both leading bulls and punters are back in the market after having taking a modest nap and mean business and the next few sessions would tell "what line of action they adopt in future to push the index to their next chart point".

Whether or not the recovery in the index could well prove a prelude to its next target of 9,000 is unclear but indications are that the march has already begun to hit the target, some brokers said.

"The index has taken similar breather before crossing the level of 5,600, 7,000 and then 8,000 but settled well above them," they added. The current status quo may be a repeat performance before hitting the next target.

Interim dividend announcements, notably bonus shares at the rate of 30 per cent by the Metropolitan Bank and 20 per cent bonus shares by Ittehad Chemicals were well above the analyst predictions and aided the underlying sentiments.

Working results of both Dewan Salman and Sui Southern Gas Company were said to be below the market expectations but in no way proved a negative factor as investors were generally guided by the market statistics rather than any external factor.

"Interim corporate announcements from some of the leading companies are overdue and indicate that they could keep the index in a good shape in the coming weeks," analysts said.

However, there is no denying the fact that some sectors of the broader market are still in overbought position and may attract stray selling here and there, without causing any major change in the stable price outlook, they said.

Leading gainers were led by Sitara Chemicals, PSO, Treet Corporation and AKD Securities, up by Rs11.75, 21.15, 25 and 33 respectively followed by Dawood Lawrencepur, ICI Pakistan PPL, Noon Pakistan, ICI Pakistan, United Sugar, Attock Refinery and Pakistan Oil filed, up by Rs5 to Rs8.

Losers were led by Artistic Denim, Sapphire Textiles, Mari Gas, EFU Life, Pakistan Cables, Nestle Milk pak. Trading volume fell to 530m shares from the previous 565m shares as gainers and losers were about evenly matched around Rs185.

Among the top volume leaders, OGDC was leading, up Rs4.95 at Rs122.50 on 161m shares followed by PSO, sharply higher by Rs21.15 at Rs433.60 on 55m shares, PTCL, firm by 85 paisa at Rs68.95 on 39m shares, National Bank, steady by 35 paisa at Rs138.75 on 35m shares and Pakistan Oilfields, up Rs5 at Rs329 on 29m shares.

Other actives were led by DG Khan Cement, higher by Rs3.25 on 28m shares, Sui Northern Gas, steady by 15 paisa on 23m shares, Fauji Fertilizer Bin Qasim, up 75 paisa on 20m shares, Pak PTA, higher by 65 paisa on 15m shares and ICI Pakistan, sharply higher by Rs6.05 on 11m shares.

FORWARD COUNTER: PPL came in for heavy fresh buying and rose by Rs11.10 at Rs266.60 on 108m shares followed by OGDC, higher by Rs7.15 at Rs127.50 on 50m shares, PSO, higher by Rs4.20 at Rs441.50 on 21m shares and PTCL, firm by 75 paisa at Rs70.10 on 15m shares. Kapco, which has declined to Rs56.30 a day earlier from the opening rate of Rs65.50, recovered modestly to close around Rs60.50, up Rs4.20 on 31m shares.