KARACHI, Oct 21: Stocks on Monday maintained an optimistic outlook as investors continued to build-up long positions on selected counters aided by reports of higher corporate earnings. The KSE 100-share index rose by 6.83 points at 2,118.56.

The underlying sentiment in part was also influenced followed by reports of presence of foreign fund buying on the energy sector under the lead of PSO, which is currently scene of alternate bouts of buying and selling ahead of its sell-off.

Heavy buying in auto shares, notably HinoPak Motors, Indus Motors and Pak-Suzuki Motors followed by reports of higher sales also proved another supporting positive factor. All rose by Rs2.00, Rs2.30 and Rs3.05 respectively.

Hub-Power also remained under pressure on selling ahead of its board meeting on Oct 23 to review the quarterly working results.

The KSE 100-share index posted a fresh rise of 6.83 points at 2,118.56 as compared to 2,111.73 at the last weekend as some of the base shares managed to finish with an extended gain.

It was a credible performance of the index as despite the weakness of leading base shares including PTCL, which holds 33 per cent weightage in it, Hub-Power, PSO, and some others, it managed to add modest gain to the weekend run-up.

Unlike the previous sessions when bulk of the buying interest remained confined to high-profile blue chips, investors have found new investment avenues in some of the second-liners, which promise capital appreciation on the strength of their interim earnings.

“The major shift in buying interest appears to be a calculated step as leading investors are not inclined to put all the eggs in a basket for obvious reasons”, analysts said adding “the strategy could well prove a sort of a hedge in case the market takes a reverse course”.

Reports about the formation of governments at the centre and the provinces in the backdrop of Oct 10 elections are still elusive but they are now no longer a market factor, they said.

Investors seem to have found cue of the post-election scenario are now least apprehensive of the political manoeuvring among the contenders of power to win over to their side the majority elected vote to form governments.

Foreign buying, which was quite strong on selected counters at the fag-end of the last week has assumed the role of profit-hunter and liquidated in part its long positions.

PSO was worst-hit on the forward counter owing to foreign selling and was marked down by Rs3.20 at Rs164.25 on 22m shares and so did Hub-Power and PTCL.

On the ready counter, Pakistan Reinsurance Company maintained its upward drive and rose by another Rs75.35 at Rs1,080.20, while Parke-Davis posted a fresh gain of Rs10.

Other prominent gainers were led by Arif Habib Securities, Fazal Textiles, Lakson Tobacco, National Refinery, Atlas Honda, Wyeth Pakistan, Merit Packaging, Noon Pakistan, Shezan International, Grays of Cambridge and Siemens Pakistan, which rose by Rs2.00 to Rs9.

Sarhad Cigarette and PSO were among the top losers, off Rs3.97 and Rs3, while others fell fractionally barring Shafiq Textiles, Glaxo-Wellcome, Millat Tractors and Kohat Cement, which fell by Rs1.75 to Rs2.

Trading volume was maintained at the weekend level of 127m shares as gainers held a strong lead over the losers at 172 to 103, with 78 shares holding on to the last levels.

MCB, topped the list of most actives for the first time since it came on the board, up 60 paisa at Rs29.80 on 14m shares PTCL, easy 10 paisa at Rs20 on 13m shares, Hub-Power, lower five paisa at Rs24.75 also on 13m shares, Sui Northern, up by 30 paisa at Rs16.50 on 11m shares, FFC-Jordan Fertilizer unchanged at Rs6.95 on 10m shares, Engro Chemical, off 25 paisa at Rs67.35 on 7m shares, ICP SEMF, lower 20 paisa at Rs28 on 5m shares and National Bank, easy 15 paisa at Rs23.85 on 4m shares.

Other actives were led by Pak-Suzuki Motors, sharply higher by Rs3.05 on 5m shares, Bank of Punjab, steady five paisa on 4m shares, Dewan Motors, firm by 30 paisa on 4m shares and PSO, off Rs3 on 2m shares despite the fact that it is being traded spot.

FORWARD COUNTER: Barring PSO, which came in for active selling at the inflated level, falling by Rs3.20 at Rs164.25 on about 22m shares, all other leading shares managed to finish on-balance steady. Its newcomer November contract also fell by Rs1.98 at Rs165.47 on 2.441m shares.