KARACHI, Oct 14: Stocks on Friday shrugged off the overnight hesitancy and resumed trading on an optimistic note as bulls were back in the market and made extensive short-covering at the overnight lower levels on selected counters.

The KSE 100-share index tended further higher by 102.37 points as it confidently breached through the barrier of 8,800 at 8,863.87 points as compared to 8,761.50 points a day earlier.

The current buying euphoria was expected to gather fresh momentum after the trading resumed on next Monday followed by market talk that the central bank had increased the exposure limit of banks to 30 per cent from the previous 20 per cent. It could well mean banks could inject massive amounts in the share business to realize capital gains. Bank shares, leading among them, being around their saturation points, may get added impetus in the sessions to come.

PTCL again led the market advance on active short-covering triggered by reports of higher earnings followed by bank shares, which also came in strong support and rose sharply higher amid active trading.

Pharma shares notably Glaxo, Aventis, ICI Pakistan and Ferozsons Lab also rose sharply higher on active support aided by the perception of soaring sales in the quake-hit areas, and so were auto shares.

While National Bank seems to have touched its so far highest level and finished with a fractional gain, both MCB and Bank of Punjab maintained their potential to rise further and so did some of the leading cement shares, notably D.G. Khan and Lucky Cement.

The bulls are currently eyeing the index level of 9,000 on the short-term basis as after that sustaining factor could play a pivotal role in the face of mounting bear pressure to cash in on the available margin of profits, analysts said.

But it now appears pretty difficult to match the all-time peak level of 10,300 as stakeholders would think twice to cross the rubicon. The last March crash would haunt them if they decided to test this level again, he said.

Floor brokers said it was in part extended buying carried over from late Thursday but there was nothing to suggest that the current run-up was over. Being in a highly overbought position, the market needed a correction and that may come in the form of fresh profit-selling in between.

“Straight run-up of both the index and the market without technical corrections is always points to an impending danger of a big shakeout”, they said adding “but correction after each rise adds to the strength of the market”.

“Now it is the season of quarterly reports both from the big ones and their second in command and there is no reason to be sceptical at the current volatile behaviour of the market”, some others said “there could, however, be two opinions about the market trend”.

Leading gainers were led by Millat Tractors and Wyeth Pakistan, up by Rs18.30 and Rs50, followed by EFU Life, United Sugar, Mari Gas, Pakistan Petroleum, Attock Petroleum, Abbott and Aventis, higher by Rs5.10 to Rs10.75.

Losers were led by Central Insurance and Pakistan Cables, off Rs5.80 and Rs8.50. Other prominent losers included Fazal Cloth, Husein Industries, Javedan Cement, Pakistan Oilfields, Shell Gas and Treet Corporation, off Rs2 to Rs5.

Trading volume owing to a short Friday session totalled 344m shares as compared with 401m shares a day earlier but gainers held a strong lead over the losers at 173 to 99, with 49 shares holding on to the last levels.

PTCL topped the list of actives, up by Rs1.80 at Rs68.20, its recent peak level on 97 million shares followed by D.G. Khan Cement, higher by Rs1.80 at Rs91.95 on 35 million shares, MCB, up by Rs3.50 at Rs150.85 on 34 million shares, National Bank, firm by 15 paisa at Rs165.55 on 27 million shares, Nishat Mills, higher by Rs4.85 at Rs102.10 on 24 million shares, Bank of Punjab, up by Rs3.25 at Rs110.25 on 15 million shares and Lucky Cement, higher by Rs3 at Rs63.90 on 13 million shares.

Other actives included Fauji Cement, up by 15 paisa on 13 million shares, Fauji Fertilizer Bin Qasim, lower 30 paisa on 12 million shares and Pakistan Oilfields, off Rs3 on 7 million shares.

FORWARD COUNTER: PTCL also led the list of actives on the cleared list, up by Rs1.45 at Rs68.50 on 21 million shares, D.G. Khan Cement, higher by Rs2.40 at Rs92.90 also on 21m shares and Pakistan Petroleum, up by Rs6.50 at Rs210 on 19m shares.

Other actives included OGDC, higher by Rs2.45 at Rs122.95 on 17m shares and Bank of Punjab higher by Rs2.40 at Rs111.20 on 14m shares. All others were modestly traded by mostly on the higher levels.

DEFAULTER COS: Trading activity on this counter was relatively slow owing partly to weekend considerations and partly to brisk trading in the ready section. There was no large business in any of the actives, although Saleem Denim and Morafoc Industries rose by Re1 and Rs1.70 at Rs3.50 and Rs35.70 respectively.