KARACHI, Nov 8: Stocks on Thursday finished with an extended gain boosted by a good cash dividend by the Pakistan Telecommunication Company Limited, which incidentally fell in line with the general market perceptions. The KSE 100-share index rose further by 29 points or 2.13 per cent at 1,382.67.

A cash dividend of 24 per cent by the PTCL was well-received in the market as bulls were back in the rings and made active short-covering on the blue chip counters at the lower levels.

The PTCL itself turned in massive activity of 77 million shares, about a half of the total volume, pushing the KSE 100-share index higher by 28.89 points at 1,382.67 as compared to 1,353.78 a day earlier.

A 24-per cent cash dividend on profit of Rs.18.15 billion and total sales of Rs.62 billion (previous Rs.59 billion) was billed fairly attractive, although some leading brokerage houses were predicting “anything below 30 per cent could attract a lot of selling in it as the bargain-hunters did in Hubco but it braved the bear onslaught”.

What was more attractive was the earning per share, which comes to Rs.3.75 for a 10-rupee share now being quoted a premium around Rs.18.00.

“The dividend announced by the PTCL board was in line with the analysts predictions, which pulled the market from the early lows on strong covering purchases on the blue chip counters”, stock analysts at the W.E. Financial Services said.

All roads led to PTCL and Hubco followed by ICI Pakistan and Engro Chemical, which together put the wavering market on the road to recovery at the weekend session, they added.

All the blue chips participated in the run-up as institutional traders made extensive buying amid predictions of a sustained run-up in the coming sessions in anticipation of positive outcome of president’s meeting with the US counterpart, stock analysts at Moosani Securities said.

Energy shares, which have been under pressure since the downward revision of POL prices also came in for strong support and finished higher under the lead of Pakistan Oilfields, PSO and Shell Pakistan, up Rs.1.50 to 3.00. Insurance shares also rose but auto sector suffered fall barring Millat Tractors, which rose by Rs.5.00.

Leading gainers were led by Glaxo-Wellcome, Fauji Fertiliser, Wah Noble Chemical, Gatron Industries, MCB, 6th and 8th ICP Mutual funds and some others, rising by Rs.1.40 to 3.00.

Losses on the other hand were fractional with the exception of Balochistan Wheels, Jahangir Siddiqi & Co, Atlas Battery, and Al-Ghazi Tractors, falling by one rupee to Rs.2.40.

But the largest decline of Rs.39.90 was recorded in Lever Brothers, which shed in part the overnight gain of Rs.60.00.

Trading volume soared to 174 million shares from the previous 72 million shares as gainers held a strong lead over the losers at 109 to 40, out of 186 actives.

PTCL was up 20 paisa at Rs.17.85 on 77m shares followed by Hub-Power, higher 30 paisa at Rs.20.60 on 33m shares, Sui Northern, up Rs.1.30 on 23m shares, ICI Pakistan firm by 60 paisa at Rs.48.30 on 10m shares and Engro Chemical, higher by Rs.2.25 at Rs.57.10 on 7m shares.

PSO led the list of other actives, up Rs.2.40 on 4.158m shares, MCB, up Rs.1.80 on 3.886m, Nishat Mills, higher Rs.1.25 on 3.535, Fauji Fertilizer, firm by Rs.1.65 on 2.951m and Adamjee Insurance, steady by 90 paisa on 1.931m shares.

FUTURE CONTRACTS: Active trading was also witnessed on the forward counter where all the shares showed sharp gains under the lead of Engro Chemical, which rose by Rs.2.00 at Rs.55.50 on 82,000 shares followed by Fauji Fertilizer, higher by Rs.1.60 at Rs.41.00 on 13,500 shares. PSO recovered Rs.1.50 at 96.50 on 99,500 shares.