KARACHI: The great bull market extended into another day on Tuesday with the KSE-100 index posting heavy gains of 208.19 points to close at an all-time high of 23,819.43 level.

Market participants admitted that the investors were enjoying surprise gains as the foreign investors were on their longest buying spree.

On Tuesday, foreign investors bought shares worth $1.97 million. In the month-to-date (from Nov 1), the foreign inflows have amounted to $30 million.

But most market participants pointed out that the foreign investment in equities was not Pakistan specific as all regional markets were experiencing foreign buying.

An equities sale head at a large brokerage house calculated that since the start of previous month (Oct) to-date, the foreigners bought Pakistan shares valued at $81 million.

In November, foreign inflows in the Indian equity market stands at $607 million, while Japan is perhaps the biggest recipient of $5.27 billion in portfolio investment.

A market participant at the KSE, who asked not to be named, chuckled as he narrated the plight of most of the local participants. Realising the values to be too high at the index level of 22,500, several local institutional investors, mainly some of the mutual funds sought exit content with the gains and decided to sit on cash and wait for the market pull back. That was not to come however.

The incessant foreign buying had pushed stock values which no one could have imagined. Most blue chips have sliced through the ‘target prices’ of some of the best analysts. Although volumes jumped to 209 million shares on Tuesday with the trading value at Rs9.569bn, from 167 million shares of the value of Rs8.480bn the earlier day, the figures released by the National Clearing Company of Pakistan showed cautious stance by the local investors.

Banks and mutual funds put relatively small sums of $0.19m and $0.43m in equities, while companies and individuals also sold in tiny amounts of $0.32m and $0.05 million.

PTCL stood out as the most active scrip with volume of 27 million shares, the stock recording gain of Rs1.18 and close at Rs29.38. Investors were excited over reports of Prime Minister Muhammad Nawaz Sharif extending invitation to foreign investors to participate in the upcoming spectrum auction for next generation mobile services and establishment of technology parks.

The PM stated that in his key-note address at the Connect Asia Pacific Summit 2013, which began in Bangkok on Monday.

Dealers on the sales desk at Sherman Securities believed that the local selling was apparent as market had already witnessed some upside and due to the concerns of low foreign exchange reserves with fears of further deterioration as more foreign payments were due next one month.

The stocks that remained in investor focus were PTC, ENGRO and UBL.

Engro closed up 2.6pc supported by the positive sentiments over book building of its subsidiary Engro Fertiliser, which started on Tuesday. UBL closed up 2pc. NBP closed up 0.5pc. Cement sector again showed an upward trend due to the lower than expected increase in interest rate.

Maple Leaf closed up 2pc, Lucky closed up 1pc; D.G. Khan Cement closed up 1pc and Fauji Cement closed up 1.8pc. Resolution of circular debt and increase in margins had taken the price of PSO over Rs.300, analyst said. Among 343 shares traded on Tuesday, 191 were gainers and 125 losers. Market capitalization surged by Rs53 billion to Rs5.637 trillion at the close of trading on Tuesday.