KARACHI, June 5: The KSE 100-share index on Wednesday breached the psychological barrier of 1,700 points on heavy buying triggered by reports that India has offered joint patrol along the LoC to monitor the alleged infiltration, a step leading to eventual resolve of the cross-border terrorism.

The KSE 100-share index recovered another 48.62 points or 2.9 per cent at 1,724.14 and added Rs10.788bn to the total market capitalization, pushing it to the coveted figure of Rs400.349bn.

Despite disturbing news from the Almaty moot and Vajpayee’s ‘no’ to meet Musharraf, stocks for the second day in a row, maintained an optimistic outlook on the perception that immediate threat of Indo-Pak war averted followed by Sino-Russian peace initiative amid hopes of Musharraf-Vajpayee meeting in Moscow.

Energy shares under the lead of PSO, which breached through its circuit breakers, up Rs7.20 and some other pivotals, including Engro Chemical and ICI Pakistan, led the market advance on strong buying at the lower levels.

The current lower levels, most of the leading shares have attained, provide an attractive bait for any investors if the fear of war with India are allayed and both the countries resolve their issues through talks as they have committed at the Almaty moot, says an analyst.

“The ice may not have broken on the tense border situation. The Indian prime minister’s offer of joint patrol along the LoC to check cross-border infiltration appears to be a positive development, opening the way for further bilateral talks on other issues,” analysts said.

The goal of peace may still be elusive despite positive initiative from the warring neighbours, though eventually it may lead to peaceful resolve of all the outstanding issues, they added.

The floor brokers said the market did not follow the disappointment linked to Almaty conference and hopes of Indo-Pak meeting but find a positive cue in the Sino-Russian efforts to defuse the prevailing tension.

Vajpayee’s talk of joint patrol on the LoC has reinforced the investor perception that tense border situation may ease, leading to the withdrawal of forces, they added.

It was perhaps in this background that investors and bargain-hunters did not want to miss the rising market and covered positions at the lower levels almost on all the counters.

Big chunk of support apparently originated from the institutional traders and their lead was actively followed by the general investors and speculators.

Top gainers were led by IGI Insurance, PSO, Fateh Textiles, Wyeth Pakistan and Lever Brothers, which finished the day with smart gains ranging from Rs3 to Rs24.

Other good gainers included Adamjee Insurance, National Refinery, Shell Pakistan, Crescent Steel, Engro Chemical, Al-Ghazi Tractors, Aventis Pharma, and ICI Pakistan, rising by Rs1.70 to Rs2.65.

Losers were led by Central Insurance, Lakson Tobacco, Rafhan Maize Products and Pak Reinsurance, which fell by one rupee to Rs10.

Trading volume fell to 150m shares from the previous 156m shares as leading bears kept to the sidelines anticipating further increase in prices.

Advancing shares maintained a strong lead over the losing ones at 168 to 71, with 50 shares holding on to the last levels.

Hub-Power again led the list of most actives, up 80 paisa at Rs23.75 on 62m shares, followed by PTCL, higher 70 paisa at Rs16.60 on 30m shares, Sui Northern Gas, up 40 paisa at Rs14.05 on 12m shares, ICI Pakistan, sharply higher by Rs2.35 at Rs38 on 7m shares and FFC-Jordan Fertilizer, firm by 30 paisa at Rs6.80 on 6m shares.

Other actives were led by Engro Chemical, higher by Rs2.05 on 5m shares, KESC, firm 15 paisa on 4.393m shares, Telecard, up 80 paisa at Rs4.205m shares, Pak PTA, steady 35 paisa on 3.560m shares and National Bank, up 90 paisa on 2.655m shares.

FUTURE CONTRACTS: MCB, Engro Chemical and ICI Pakistan came in for strong support at the lower levels rose to close higher by Rs1.15, 2.05 and Rs2.65 at Rs25.80, 61.55 and Rs38.55, respectively, amid active trading.

But largest rise of Rs6.50 was noted in PSO, which rose to Rs133 on 2.760m shares changing hands.

Hub-Power again came in for strong both from the local and foreign investors and rose by 90 paisa at Rs24.05 on 16.652m shares followed by PTCL, higher 55 paisa at Rs16.65 on 5.015m shares and Sui Northern, firm by 40 paisa at Rs14.05 on 3.116m shares.

DEFAULTER COMPANIES: Crescent Board came in modest support and rose Rs1.50 at Rs4.80 on 10,500 shares, followed by Mehran Jute, firm by 15 paisa at Re1 on 8,000 shares and Allied Motors, easy 50 paisa at Rs10 on 5,500 shares.

BOARD MEETINGS: Abbott Lab on June 8, and English Leasing on June 11.