KARACHI, Feb 14: Stocks on Thursday staged a broad recovery on strong buying at the lower levels aided by an enhanced interim dividend of 40 per cent by the Hub-Power management. The KSE 100-share index recovered 56.48 points or 3.39 per cent and breached through the barrier of 1,700 at 1,722.89.

Investors who were a bit hesitant earlier in the backdrop of massive battering over the last three sessions were back in the market after the reports of Hubco dividend came in.

The Hubco board meeting held in Karachi gave pleasant surprise to even most well-informed analysts both in terms of higher earning and interim dividend.

“The late recovery demonstrated that there is nothing inherently wrong with the underlying sentiment and the market could rise on the strength of positive fundamentals after having passed through a consolidation phase,” analysts at the W.E. Financials said.

The opening was, however, easy, what the dealers called, the extension of overnight sell-off, but as the news of higher profit and above market expectation dividend came in after the Hubco boarding meeting, investors were back in the rings and made an extensive covering purchases.

MCB also came in for strong support on identical reports of higher profits and expectations of enhanced dividend and rose sharply.

News from Washington were also positive as the outcome of the President’s meeting with Bush was stated to be in line with the market perceptions.

Although there was no word on increase of textile quota to the US, president Bush’s pledge for loan write-off of $1bn influenced the market sentiment on the higher side.

“The market has dropped by 120 points during the last three sessions after testing the two-year high of 1,800 point index level resumed its upward drive as positive news followed in quick succession,” stock analysts at Moonsani Securities said, adding as more details about the President’s US visit will come in the market is expected to rise further.

With the exception of Engro Chemical, which remained under pressure after having risen to Rs82 during the current speculative run, all other blue chips generally finished fully recovered under the lead of PSO, which spurted by Rs7.10 at Rs130.

The market advance was led by the energy shares under the lead of PSO and Shell Pakistan that rose by Rs7.10 and Rs10, respectively, followed by Lever Brothers, up Rs22.

Other leading shares that rose above Rs2 included Pakistan Oilfields, Crescent Steel, ICI Pakistan and Tri-Pack Films. MCB, Adamjee Insurance, Hub-Power, Atlas Honda, Knoll, National Refinery and Shezan International rose by Rs1.50 to Rs1.90.

Engro Chemical, led the losers, off Rs5.90 followed by Bhanero Textiles, Al-Abbas Sugar despite a cash dividend of 20 per cent, Al-Ghazi Tractors, General Tyre, Clariant Pakistan, Glaxo-Wellcome, and 14th ICP, falling by Rs1.25 to Rs2.

Trading volume showed a modest decline at 225 million shares but advancing shares managed to hold a strong lead over the losing ones at 107 to 61, out of 208 actives.

Hub-Power topped the list of most actives, up Rs1.85 at Rs27.15 on 73m shares, PTCL, higher 85 paisa at Rs18.75 on 67m shares, Sui Northern up Rs1.35 at Rs14.20 on 29m shares, PSO, higher Rs7.10 at Rs130 on 10m shares and D.G. Khan Cement, off Rs1.15 at Rs10 on 5m shares.

Other actives were led by Fauji Fertiliser, up Rs1.45 on 4.049m shares, KESC, up 80 paisa on 3.633m shares, Engro Chemical, off Rs5.90 on 3.193m shares, Japan Power, firm by 30 paisa on 3m shares and Lucky Cement, steady 10 paisa on 2.744m shares.

FUTURE CONTRACTS: Forward counter also showed smart recovery under the lead of PSO, which rose by Rs6.35 at Rs130.50 on 0.707m shares followed by MCB, up Rs1.90 at Rs27.65 on 82,000 shares, ICI Pakistan, higher Rs1.80 at Rs46.95 on 87,500 shares and Fauji Fertiliser, higher Rs1.50 at Rs50 on 82,500 shares.