THE KSE 100-share index crossed rubican for the third time during the last couple of months but failed to sustain the coveted level of 1900 points as investors and institutional traders, perhaps, were not inclined to go beyond it for reasons best known to them.

But the post-referendum run-up, aided by the perception of continuity in current financial policies and higher corporate earnings, is expected to be sustained as it has more than one positive reasons behind it.

Fears of agitation are still there as major political parties dispute the results of the presidential referendum and are thinking of launching a movement against it.

However, the higher corporate dividend and the sale figures pouring in, in each session, notably from some leading MNCs and local companies are expected to keep the investor interest alive and will, in part, absorb the floating stock.

“I don’t think leading bears will halt the market’s journey beyond the 2,000-point index level this time”, hopes a member of the KSE as it could benefit both contenders on either side of the divide.

Stocks, therefore, showed widespread gains at the fag-end of the week as the post-referendum pent-up demand figured prominently on the selected counters, lifting the KSE 100-shares index well above the psychological barrier of 1900 points.

“The post-referendum buying euphoria is expected to manifest itself in a big way by next week as both the general investor and the institutional traders are planning for a long-term buying strategy at current levels”, stock analysts at the W.E Financials say.

Most of the market irritants have been removed but future outlook appears pretty bullish despite the fears of political tensions, they added. The big business is more than happy as the referendum has ensured continuity in economic policies badly needed at this time to hasten the pace of recovery and that could well prove a pivotal point in shaping the market direction in future.

The KSE 100-share index settled well above the barrier of 1,900 points at 1,904.16 after hitting the peak of 1,915, a gain of 48.16 points or four per cent and an increase of Rs10 billion in the market capitalization at Rs440 billion. A second interim dividend at the rate of 75 per cent, the first interim at the rate of 70 per cent already paid by the BOC Pakistan generated strong buying in its share at the inflated rate of Rs112. About 74,000 shares changed hands at this higher level amid predictions of higher final.

Final dividend at the rate of 45 per cent by the management of Packages and 20 per cent interim by General Tyre and Rubber Company also aided the sentiment.

Floor brokers predict that the market had already underwent a technical correction on Monday and is now bracing to respond bullishly to strong fundamentals.

“The massive yes vote in the referendum has ensured another five-year term for the president”, they say and add “this is what the big business wants as it means continuity in financial as well as economic policies”.

However, fears of political agitation against the referendum results by the opposition are there, which in a way curtailed the daily intake of general investors.

“Possibly by next week the market is expected to show its inherent strength on strong long-term buying led by the institutional traders”, says a leading stock analyst basing his assessment on the post-referendum political scenario.

The market advance was led by energy, chemical, auto and textile sectors, while investment shares remained under pressure, barring the ICP Mutual Funds, which rose modestly.

“Foreign investors may not come in a big way but the perception of continuity in future investment policies could lure some of them at the current lower prices and an imminent sell-off of some mega issues including the PSO”, some others predict.

Big gainers were led by the 6th ICP Mutual Fund, Gul Ahmed Textiles, the National Refinery, the International Industries, Ferozson Lab, Glaxo-Wellcome, the Packages, Ghani Glass, Treet Corporation, Shell Pakistan, Aventis Pharma, Noon Sugar, the BOC Pakistan and several others.

But the largest rise of Rs70 was again noted in the Wyeth Pakistan owing to the shortage of floating stocks followed by the Lever Brothers Pakistan.

Losers were led by the Attock Refinery, the PSO, Atlas Honda, the ICI Pakistan and Siemens Pakistan, Berger Paints, Engro Chemical, Din Textiles, Nestle MilkPak and some others but declines were mostly fractional.

FORWARD COUNTER: Barring the Engro Chemical and the ICI Pakistan, which remained under pressure, all other speculative issues managed to finish on-balance steady under the lead of the PTCL, the Hub-Power, but the PSO and some others played on both sides of the fence amid alternate bouts of buying and selling. The Hub-Power and the PTCL again led the list of actives as they did in the ready section. Despite May day holiday, traded volume was maintained at the previous week’s level as over half a billion shares were traded, about 60 per cent of which went to the credit of the PTCL and the Hub-Power.