KARACHI, Oct 29: Stocks on Monday remained in a bullish frame of mind as the strength of the PTCL and other pivotals evoked active sympathetic buying on the other counters amid brisk trading. The KSE index was up about 2 per cent or 24 points at 1,425.31.

However, late profit-selling in some of the blue chips, notably Hub-Power pushed the market to finish below the best levels of the day and with clipped gains but the undertone remained uppishly inclined.

“Although the buying support was largely selective and was confined to a dozen current favourites, instances of strong foreign-fund buying was not lacking, notably in Hub-Power and some other MNCs”, claims a member of the KSE.

The market’s rise beyond the 1,425 index level may not be speculative, it has some sound reasons including an expected major boost to the economy is behind the current price flare-up, he adds.

The KSE 100-share index earlier surpassed the resistance level of 1,425.00 and at one stage it appeared that it could touch the next barrier of 1,450.00 points but bears moved in and took profits in Hubco.

It finished with an extended gain of 23.80 points at 1,425.31 after hitting the day’s best level of 1,435.00 as compared to 1,401.51.

The chief inspiring force behind the current run-up is claimed to be perception of a robust economy as the floodgate of foreign credit lines, grants and write-off is progressively opening, analysts said.

They said the trade losses owing to war-like situation and local protests against the US bombing on Afghanistan seemed to have been relegated to the secondary position, although the top business was worried over the developing financial scenario and falling exports.

“An expected trade gap of $1.5 billion appears pretty hard to fill in if the Afghan war drags on”, they fear, adding “how to convince foreign importers to resume normal trading operations now is not that easy as they fears interruption in supplies in the changed shipment perceptions”.

Prominent gainers were led by Attock Refinery, Pakistan Oilfields, ICI Pakistan, Shell Pakistan and EFU Life Insurance, which posted gains ranging from Rs.2.00 to Rs.9.00 on active turnover.

Al-Faysal Investment Bank reacted bullishly to reports of an interim dividend of 17.5 per cent and ended higher by Rs.1.75 at Rs.10.55 on 84,500 shares followed by Faysal Bank, on 10 per cent interim dividend, Nagina Cotton, Lever Brothers and Security Paper, which rose by Rs.1.10 to Rs.1.85.

Among the major losers Millat Tractors was leading, off one rupee, while all others fell by 50 to 95 paisa on stray selling.

Bulk of the buying support was confined to PTCL ahead of its board meeting and market talk of a good dividend, which rose sharply to close around the day’s best bid on a massive activity of 127 million shares.

After initial rise to Rs.24.35, Hubco on the other hand failed to hold on to its recent best level as the final dividend-driven support turned shy, allowing to finish lower by 20 paisa.

But other leading blue chips including ICI Pakistan, PSO, Engro Chemical and several others managed to finish with an extended gain.

Trading volume rose to 268 million shares from the weekend 210 million shares as advancing shares maintained a strong lead over the losing ones at 102 to 63, out of 214 actives.

PTCL led the list of most actives, up 80 paisa at Rs.18.70, off the day’s best level of Rs.19.00 on 127m shares followed by Hub-Power, lower 20 paisa at Rs.23.40 on 81m shares, ICI Pakistan, higher by Rs.2.70 at Rs.48.40 on 12m shares, PSO, up 75 paisa at Rs.114.45 on 10m shares and Engro Chemical, higher 65 paisa at Rs.56.10 on 5m shares.

Other actives were led by Sui Northern, steady by 10 paisa on 4.553m shares, MCB, up 70 paisa on 3.997m shares, Adamjee Insurance, lower 40 paisa on 3.933m, Fauji Fertiliser, higher by 60 paisa on 3.632m shares and Faysal Bank, up Rs.1.10 on 3.167m shares.

FUTURE CONTRACTS: Forward counter also showed firm trend as most of the blue chips showed sympathetic rise in line with the ready section under the lead of PSO, Hub-Power, Engro Chemical and Fauji Fertilizer, which posted gains ranging from Rs.1.10 to Rs.2.00.