KARACHI, Jan 7: The total market capitalization soared to about Rs611 billion on Tuesday surpassing its previous all-time peak level of Rs610 billion recorded during the mid-90s boom conditions owing to massive buying in heavily capitalized shares, notably PSO, PTCL and Hub-Power, and steep rise in their share values.

“The sustained run-up without an overdue technical interruption in a highly overbought market has raised many questions, but there are no precise answer from any quarter,” analysts said, hoping “the end may not leave behind a long list of casualties.”

Heavy buying in PSO featured the trading as investors continued to build-up long positions in it for the second day in a row followed by reports of second pre-bid meeting, leading to its sell-off to one of the short-listed strategic buyers. Hubco also faced the avalanche of buying offers and so did Shell Pakistan.

The KSE 100-share index also breached through the barrier of 2,800 points but late selling in the leading base shares allowed it to finish with clipped gain of 14.42 points at 2,779.98.

“The successive breach of both the records, index and market capitalization, reflects the mood of the investors led by the financial institutions and the future outlook of the share business,” analysts said, adding “sky may not be the limit, it is pretty difficult to pass on the judgement on the meteoric rise and their next chart levels.” The KSE 100-share index last week breached through its previous record of 2,662 points of mid-90s.

All roads may not be leading to PSO, and sharp price flare-up indicates that it is heading to establish new peak level for the new year before the sell-off deadline.

“Its share value in the sessions preceding the sale of its 51 per cent controlling shares may not touch its all-time peak level of Rs450 hit during the previous boom conditions over a decade back, but could ensure a fair return to the new investors,” one analyst predict, adding “the chart point of Rs300 for its 10-rupee share now appears not that ambitious.” Shell Pakistan also rose by Rs50 during the last two sessions in sympathy.

The buying flurry in PSO and some other pivotals was strong, which pushed the KSE 100-share index above the psychological barrier of 2,800 at one stage. The close was, however, lower at 2,780.03 owing to late selling allowing it post a fresh gain of 14.47 points.

Over a 100m shares of PSO, including today’s 53m shares, were cornered during the two sessions as its share value raced at one stage to Rs233 before closing reacted at Rs228.95.

“I don’t think the overdue technical correction could make deeper inroads in the protected territory of the bulls at least for the near-term,” most analysts believe. “It now appears certain that 2,800 point level could be the benchmark.”

Quick moves to sell 51 per cent controlling shares of PSO possibly before March 31, steady inflow of financial support, economic take-off and robust performance of the market during the last year may allow any major shakeout at this stage.

“Much seems to have changed on the corporate front after the discount rate cut by the central bank and bankers, with massive excess liquidity are out to invest it in any gainful mode of investment,” brokers said, adding “at the moment there is none except the share business.”

Although it is pretty difficult to find evidence of foreign buying, there is a talk of its presence on selected counters, notably Hub-Power and some others.

“As the date of disinvestment of PSO shares is drawing nearer, foreign investors, notably the bidders would like to reinforce their shareholding in it after cornering the floating stock,” says a leading broker and added the current surge in its share, notably on the forward counter is reflective of this phenomenon.

Plus signs again dominated the list under the lead of PSO, Pakistan Refinery, Attock Refinery, Pak Reinsurance Co and Shell Pakistan, which posted gains ranging from Rs3.65 to Rs7.70, highest rise of Rs24.80 being in Shell Pakistan. On Monday, it rose by Rs26.45 owing to shortage of floating stock.

Other prominent gainers included Sana Industries, Pakistan Oilfields, Pakistan Refinery, Shell Gas, Millat Tractors, Siemens Pakistan and many others rising by Rs2.75 to Rs6.25. ICP funds rose under the lead of 4th one, up Rs3.

Losers were led by Sarhad Cigarette, Atlas Battery, Noon Pakistan, Gillette Pakistan and Unilever Pakistan, off by Rs1.70 to Rs10.

Turnover figure showed a sharp rise at 483m shares from the previous 301m shares thanks to a massive activity of 241m shares in Hub-Power, up 95 paisa at Rs42.10.

Other actives were led by PSO, higher by Rs3.65 at Rs228.95 on 53m shares, PTCL, unchanged at the Rs25.30 on 36m shares, FFC-Jordan Fertiliser, lower by 15 paisa at Rs9.90 on 15m shares and Sui Northern Gas, firm five paisa at Rs23.35 on 14m shares.

Dewan Salman was also actively traded, up 60 paisa on 14m shares, MCB, firm 35 paisa on 12m shares, Engro Chemical, up 25 paisa on 11m shares, Pakistan Oilfields, higher Rs3 also on 11m shares and KESC, steady by five paisa on 10m shares.

FORWARD COUNTER: Hub-Power was massively traded, up 80 paisa at Rs42.35 on 30m shares followed by PSO, sharply higher by Rs4.45 at Rs231.50 on 15m shares, PTCL, easy 10 paisa at Rs25.50 on 8m shares.