KARACHI, Jan 9: The KSE 100-share index on Thursday confidently broke through the barrier of 2,800 points, continuing its march to the next target of 3,000 points aided by strong buying originating from all the quarters. It ended with a smart gain of 51.43 points or about 2 per cent at 2,829.59.

“Breach of the barriers is now no news for investors,” one broker said, adding “the market has witnessed a plenty of them during the last one month. What now enthuse them is an attractive bait of capital gains amid a sustained price flare-ups.”

Bullishness was more pronounced on the forward counter where Sui Northern, PSO, MCB and Engro Chemical rose by Rs1.40 to Rs2.80, largest gain of Rs4.70 being in Fauji Fertiliser at Rs88.35. Turnover was on the higher side at the higher rates.

The index finally ended with a hefty gain of 51.43 points at 2,829.59 points as compared to 2,779.98 a day earlier owing to heavy fresh buying in PTCL and Hub-Power, which together hold a weightage of 43 per cent in it. The market capitalization swelled to Rs619.648bn, a net gain over the day of Rs9.831bn.

Energy shares, including PSO, Shell Pakistan and oil refiners led the market advance amid heavy trading. Reports that the government has sold about 15m shares of Pakistan Oilfields at Rs2.4bn at a fixed price of Rs160 per share of Rs10 to a foreign investor also aided the sentiment.

Both the index and the total market capitalization has bettered their previous records established a decade ago at 2,830 and Rs621bn as compared to 2,662 and Rs610bn. Where the end will come is pretty difficult to predict at this stage as bulls are not inclined to loosen their grip on a highly overbought market, with badla business at its new peak level.

Although the market appears to be in a consolidation phase being in a highly overbought position and higher badla business and rates at Rs13bn and 35 per cent, reports of nine per cent cut in interest rates on local bank loan of Hub-Power and an other 50 basis point reduction in T-bill rates to 3.946 per cent allowed financial institutions to inject fresh funds in shares.

“The cut in T-bill rates may be a prelude to further reduction in discount rate by the central bank,” analysts said and added this perception lured “cash heavy institutional traders to pour money into the share business.”

Most analysts predicted a day earlier that the market could shed about 100 points owing to an abnormal conditions in the carryover business (badla), but quick moves by the central bank apparently in a bid not to allow the market to fall from the current levels did not allow investors to leave the market.

Shell Pakistan and Wyeth Pakistan were leading among the gainers, up by Rs10.60 and Rs18 followed by Unilever Pakistan, Central Insurance and National Refinery, up Rs5 to Rs6.55. Dawood Cotton, 4th ICP, MCB, PSO, Al-Ghazi Tractors, Colgate Pakistan, Engro Chemical, Fauji Fertiliser and several others followed them, up by Rs2.15 to Rs4.40.

Losers were led by Sarhad Cigarettes, Abbott Lab, Bhanero Textiles, Clariant Pakistan, and Pakistan Refinery, off Rs1.60 to Rs6.65, respectively.

Trading volume soared to 425m shares from the previous 297m shares as gainers outpaced losers by 175 to 125, with 73 shares holding on to the last levels. Unlike the previous sessions, the notable feature was that most of the leading shares turned out larger turnovers at higher rates.

Hub-Power led the list of most actives, off 20 paisa after early rise to Rs41.95 at Rs41.45 on 86m shares followed by PTCL, higher by 65 paisa at Rs25.70 on 79m shares, Sui Northern Gas, up Rs1.45 at Rs24.60 on 53m shares, PSO, higher Rs2.60 at Rs232 on 34m shares and Engro Chemical, sharply higher by Rs3.05 at Rs97.40 on 26m shares.

Other actives included KESC, firm by 40 paisa on 22m shares, MCB, higher Rs2.55 on 21m shares, Fauji Fertiliser, up Rs4.05 on 16m shares, FFC-Jordan Fertiliser, steady by 25 paisa on 14m shares and ICI Pakistan, higher 75 paisa on 10m shares.

FORWARD COUNTER: Hub-Power led the list of actives, unchanged at Rs42 on 16m shares, followed by PTCL, higher 70 paisa at Rs25.95 on 10m shares and PSO, up Rs2.05 at Rs234.25 on 8m shares.