KARACHI, Jan 29: The KSE 100-share index on Tuesday broke the 14,000-point barrier on active follow-up support in the base shares after leading investors and some financial institutions resumed their covering operations aided partly by higher corporate announcements and recovery in the regional bourses.

There was nothing new in the political background news to which the broad recovery could be attributed to, barring market’s oversold position which needed correction and that came in the form of belated short-covering.

The 100-share index has been hovering around its pre-reaction level of 14,000 points after having taken measured steps back and forth for the last couple of sessions and the Rubicon was, at last, crossed once again, analysts said.

But the breakthrough was not that decisive and terribly fragile, they said, adding “Wednesday’s session will determine whether or not this prestigious level is sustained”.

The final closing was at 14,009.00, up by 128.52 points as compared to 13,880.48 a day earlier as some of the leading base shares came in for fresh active support.

The leading base shares, Arif Habib Securities, Engro Chemical, PTCL, PSO and Fauji Fertiliser Bin Qasim, significantly contributed to boosting the index to its coveted level.

“It is dividend linked rally,” said a leading analyst, adding “the important thing is that all the payouts announced so far are in line with market expectations”.

The recovery in the regional bourses was another positive factor that lured investors back in the ring to make fresh covering purchases at attractive lower levels.

The market may tread on a positive line of action before the national elections are held on the strength of higher corporate announcements but political uncertainty may take its toll, some others said.

The general perception was that dividends by the banking, cement and oil sectors for the year ended December 31, 2007 are billed terribly handsome and could keep the market in a good shape in the coming sessions also.

JS & Co and AKD Capital were leading among the gainers, up by Rs59.90 and Rs18.30, followed by Javed Omer, Adamjee Insurance, JS Global, Pakistan Tobacco, Shell Gas, Shell Pakistan, PSO, Engro Chemical, Clariant Pakistan, Grays of Cambridge, Pakistan Engineering and Packages, which posted gains ranging from Rs6.40 to Rs17.80.

Prominent losers were led by Siemens Pakistan and Arif Habib Ltd, off by Rs70 and Rs16.60 respectively. Other notable losers included Indus Motors, Millat Tractors, Clover Pakistan and National Foods, lower by Rs6.30 to Rs9.

Trading volume rose to 235m shares from the previous 172m shares as gainers forced a strong lead over the losers at 212 to 128, with 36 shares holding on to the last levels.

Arif Habib Securities topped the list of most actives, higher by Rs6.60 at Rs179.60 on 25m shares followed by Fauji Fertiliser Bin Qasim, firm by 85 paisa at Rs42.60 on 21m shares and NIB Bank steady by 10 paisa at Rs23.15 on 11m shares.

Engro Chemical, sharply higher by Rs7.35 at Rs284.70 on 10m shares, PTCL, up by 65 paisa at Rs38.85 on 9m shares, PSO, higher by Rs10.80 at Rs442.90 on 6m shares and Lucky Cement, steady by 40 paisa at Rs116.30 on 7m shares.

Other actives included Pangrio Sugar, off 50 paisa at Rs28.80 on 7m shares, Dewan Salman, up by Re1 at Rs8.35 also on 7m shares and Bosicor Pakistan, firm by 30 paisa at Rs21.35 on 6m shares.

FORWARD COUNTER: PSO led the list of actives on higher reports of earnings and rose by Rs11.45 at Rs445.15 on 3m shares followed by Lucky Cement, up by Rs1.50 at Rs116.70 also on 3m shares and Engro Chemical, higher by Rs6.15 at Rs285 on 2m shares.