KARACHI, Jan 10: Stocks on Friday finished with an extended gain as investors were not inclined to miss the rising market followed by predictions of higher dividend by most of the leading companies. The KSE index rose by another 40 points at 2,869.24.

But unlike the previous sessions, the buying interest spread to some other leading shares, shifting the focus from the overbought sectors to the hereto neglected ones and for good reasons too.

That is perhaps why some of the second-liners are turning out large volumes at the higher rates and indications are that the market leaders such as PTCL and Hub-Power may be relegated to the secondary positions if the current buying euphoria continues.

“Liquidity continues to be the chief driving force behind the run-up, brokers said. “The bait of capital gains even in the overvalued shares being fed by the idle financial funds do not allow investors to leave the market.”

After rising to 2,895 twice, demonstrating that it may breach through the barrier of 2,900, the KSE 100-share index finished with a clipped gain of 39.65 points at 2,869.24 as compared to 2,829.59 a day earlier, reflecting the strength of PTCL and Hub-Power.

“Now it appears pretty sure that the index level of 3,000 is now not that ambitious,” predicts a leading broker adding “the attractive bait of higher capital gains is attracting money from all the quarters like anything.”

The market is now in the tight grip of leading bulls assisted by the cash heavy financial institutions never allowing bear a breathing space to enter the arena.

No one could precisely tell where the end will come and market will respond to its technical demands, which could move both ways of the fence.

“Terribly higher badla business around Rs.13bn, and rates skyrocketing, the market has certainly entered the danger zone,” one analyst said fearing that “basic fundamentals are not that strong to sustain the meteoric rise.”

No one could deny the fact that investors have pocketed millions of rupees during the current price flare-up in the form of capital gains but leading analysts doubt the market’s ability to absorb the bear onslaught whenever they chose to fight back.

“I don’t say the index’s sustained rise to its new career-best level is artificial, it may have some basis,” says a broker. “It owes its strength largely to heavy buying in PTCL and Hub-Power what if both tread in the reverse gear.” Both have 43 per cent weightage in it.

Leading gainers were led by Javed Omer, Dawood Cotton, PSO, Al-Ghazi Tractors, Fauji Fertilizer, ICI Pakistan, Universal Leather, Unilever Pakistan, which posted gains ranging from Rs.3 to 20, while losers were led by Shell Pakistan, which came in for active selling after a sustained rise and fell by Rs.18.90 followed by Dawood Hercules and Pakistan Refinery, which showed decline of Rs.6 and 2.25 respectively.

Trading volume rose to 583m shares from the previous 425m shares as gainers forced a strong lead over the losers at 230 to 79, with 51 shares holding on to the last levels.

Hub-Power topped the list of most actives, up 55 paisa at Rs.42 on 143m shares followed by PTCL, higher 35 paisa at Rs.26.05 on 126m shares, FFC-Jordan Fertilizer steady 40 paisa at Rs.10.55 on 42m shares, Sui Northern Gas, firm by five paisa at Rs.24.65 on 36m shares and PSO, higher by Rs.1.55 at Rs.233.55 on 27m shares.

Other actives were led by Dewan Salman, higher by 80 paisa on 26m shares, ICI Pakistan, up Rs.3.90 on 23m shares, National Bank, firm by 35 paisa on 21m shares, First Prudential Modaraba, higher 65 paisa on 19m shares and Pakistan Oilfields, up Rs.7.10 on 16m shares.

FORWARD COUNTER: Both Hub-Power and PTCL remained in strong demand and rose by 35 and 30 paisa at Rs.26.30 and 42 on 20m and 19m shares respectively followed by PSO, higher Rs.4.55 at Rs.238.80 on 8m shares.