KARACHI, Aug 30: Stocks on Tuesday maintained their winning streak as investors continued to build up long positions on oil and bank counters as both ensure handsome capital gains at the current lower levels owing to higher earnings.

However, most of the gains were fractional and reflect that investors are taking an overview of their inventories before resuming normal activity. The perception that prices have already reached a saturation point may not be correct.

The KSE 100-share index confidently breached through the psychological barrier of 7,700, aided by heavy buying in PTCL and other leading base shares and analysts predict the index level of 8,000 now may not be an elusive target.

It finished the session with a fresh rise of 53.59 points at 7,744.19 as compared to 7.690.60 a day earlier, as all the leading base shares, including OGDC, National Bank, Pakistan Oilfields and Pakistan Petroleum, maintained their upward drive on active follow-up support.

After the advent of new financing system under the CFS, the index has risen by over 500 points, as investors’ liquidity problems were partly solved and there could be a further rise in share values in coming days, technical corrections here and there withstanding. Big ones now mean business as is reflected in rising volumes.

The other positive supporting factor is higher dividend announcements, both from bank and oil sectors, which shifted the buying interest to those counters where dividend announcements are due.

An interim dividend of 20 per cent by ICI Pakistan may be viewed lower in the backdrop of robust payouts by those which do not match its sales or financial position, but analysts believe final could be much higher, as Pakistan PTA is now an independent earning entity having no adverse bearings on its working results.

“All pointers now point to a continuation of the current rally after due correction,” analysts said. “The market’s oversold position could attract any amount for fresh buying during the sessions to come.”

Floor brokers said a record rise in world crude oil prices to $70 per barrel and perception of sympathetic rise in local selling prices for oil giants were the chief inspiring force behind a strong buying in the oil sector.

The buying euphoria, which dominated the oil sector, finally spilled over to other counters under the lead of bank shares, allowing the market to maintain bullish outlook, they added.

Although minus signs held a lead over the plus ones, Rafhan Bestfoods and Wyeth Pakistan managed to finish with good gains of Rs16.45 and Rs43.75, respectively. Other prominent gainers included National Bank, Pakistan Services, Attock Refinery, Attock Petroleum, Berger Paints, Aventis, Ferozsons Lab and National Refiner, up by Rs5.30 to Rs12.

Losers, which again dominated the list, fell under the lead of Central Insurance and Siemens Pakistan, declined by Rs6 to Rs14.90, followed by Indus Dyeing, Haroon Oils, National Foods, Artistic Denim, Lakson Tobacco, and EFU Life, off Rs2.75 to Rs5.

Trading volume further rose to 476m shares from the previous 357m shares, as losers topped gainers by 165 to 126, with 44 shares holding on to the last levels.

PTCL topped the list of actives, up 85 paisa at Rs66.45 on 102m shares, followed by National Bank, higher by 60 paisa at Rs113.10 on 75m shares, OGDC, firm 50 paisa at Rs114.15 on 52m shares, DG Khan Cement, higher by Rs1.75 at Rs61.80 on 47m shares, Fauji Fertilizer Bin Qasim, steady 30 paisa at Rs35.20 on 40m shares, the Bank of Punjab, up Rs1.45 at Rs97.25 on 37m shares, and MCB, higher by Rs1.30 at Rs105.25 on 26m shares.

Other actives were led by Pakistan Oilfields, up 95 paisa on 21m shares, Nishat Mills, firm by 35 paisa on 13m shares and Pakistan Petroleum, up 25 paisa on 12m shares.

FORWARD COUNTRER: National Bank came in for strong support on market talk of bonus shares and rose by Rs5.65 at Rs119.25 on 17m shares, followed by PTCL, up 55 paisa at Rs66.95 also on 17m shares, OGDC, higher by 60 paisa at Rs115.25 on 11m shares.

Other actives were led by Pakistan Petroleum, lower 25 paisa at Rs177.55 on 9m shares and Bank of Punjab, higher Rs1.80 at Rs98.70 on 7m shares. Others also rose amid light turnover.

DEFAULTER COS: Trading on this counter remained light, although some of the shares managed to put on good gains under the lead of Sahrish Textiles, Amin Spinning, International Knitwear and Ghandhara Industries, which posted gains ranging from 65 paisa to Rs1.25. Crescent Standard Bank on the other hand fell by one rupee at Rs13.50 on 26,500 shares.

DIVIDEND: Merit Packaging, cash 35 per cent; Crescent Leasing, bonus shares 12.5 per cent; BSJS Balanced Fund, Haydari Construction, and Lucky Cement, nil.

BOARD MEETINGS: Attock Refinery, Atlas Battery and Shifa International, on Sept 2; Habib Bank Modaraba on 3; Standard Chartered Modaraba on 5; Imrooz Modaraba on 6; and Dadex Eternit, on Sept 24.