KARACHI, Oct 5: Stocks on Thursday finished with an extended gain led by MCB and National Bank on active buying triggered by reports of their GDR listing on the London Stock Exchange and ABN AMRO and Prime Bank buyout talk. The KSE 100-share gained another 112.27 points at 10,855.82 in a large volume of 254m shares.

The market witnessed another session of upper locks on some of the counters as floating stocks failed to meet the rising speculative support and the consequent price flare-ups.

Leading stocks tended further higher under the lead of bank shares amid market talk of foreign interest in some of the smaller banks. The important thing was the expected inflow of foreign funds into the share business.

The KSE 100-share index posted a fresh gain of 112.27 points at 10,855.82 as compared to 10,743.55 a day earlier aided by a sharp increase in MCB and National Bank shares, two major heavy weights in it.

But the KSE 30-share index posted a bigger rise of 264.34 points at 13,544.18 points as compared to 13,279.84 points a day earlier on the strength of its leading base shares.

An idea of buying euphoria may well be had from the fact that investors apparently ignored the negative fallout of a massive bomb blast on Wednesday night at Ayub National Park in Rawalpindi.

Reports that the buyout talks between Prime Bank and ABN AMRO are in an advance stage after the official nod and a deal could be signed any day on the pattern of Union Bank, sold last week to a foreign interest.

According to a leading stock analyst Muhammad Imran, the market capital of smaller banks has risen by 19 per cent as against 15 per cent of the big ones since the rumours of acquisition assumed the role of market trend-setters. They have also outperformed their senior partners in price appreciation.

“The banking sector has assumed the role of market trend-setter in place of oil giants,” stock analyst Ahsan Mehanti said. “The buyout talks may succeed or fail but there may not be retreat from the inflated levels.”

The other supporting factor, which pushed prices of some of the leading banks sharply higher under the lead of National Bank and MCB, was an official announcement that their GDR will be listed on the London Stock Exchange during the current year.

But no one could deny the fact that the market is now in an overbought position and needs correction, which could come even on the weekend session, another analyst Hasnain Asghar Ali said.

MCB and Arif Habib Securities were leading among the gainers, up by Rs11 and Rs18.05, respectively, followed by Dawood Hercules, Bank of Punjab, Engro Chemicals, PSO, Adamjee Insurance and National Bank, up by Rs4 to Rs10.40.

Losers were led by Union Bank and Clover Pakistan, off Rs6.25 and Rs6.20, respectively. Barring Fazal Textiles, Gadoon Textiles, Pakistan Refinery, Pak-Suzuki Motors, Shield Corporation and Premier Sugar, which fell by Rs2 to Rs4.45, other declines were fractional.

Trading volume showed a sharp expansion at 254m shares as compared to previous 196m shares, as gainers outpaced losers by 173 to 134, with 37 shares holding on to the last levels.

National Bank topped the list of actives, sharply higher by Rs10.40 at Rs276 on 33m shares, followed by OGDC, lower by 90 paisa at Rs133.60 on 26m shares, Bank Alfalah, up Rs1.20 at Rs50.45 on 23m shares, DG Khan Cement, higher by Rs1.45 at Rs98.25 on 22m shares, PTCL, up Rs1.20 at Rs42.10 on 19m shares, Pakistan Petroleum, higher by Rs1.45 at Rs238 on 15m shares, and PSO, up Rs5.50 at Rs319 also on 7m shares.

Other actives were led by Dewan Salman, up 55 paisa on 8m shares, Faysal Bank, higher by Rs3.25 on 7m shares and Nishat Mills, up Rs2.60 also on 7m shares.

FORWARD COUNTER: MCB Bank came in for strong support and rose by Rs10.60 at Rs272.50 on 11m shares, followed by Bank of Punjab, higher by Rs4.35 at Rs91.85 on 7m shares, and National Bank, up Rs10.30 at Rs276.80 on 6m shares.