KARACHI, Feb 20: Stocks on Wednesday remained in a bullish frame of mind despite a below market expectations interim dividend of 30 per cent by Pakistan State Oil (PSO) and finished with an extended gain.

The market’s buoyant mood was well-reflected in the KSE-100 share index, which breached through the psychological barrier of 1,700 points followed by strong Lahore-based speculative support in most of the pivotals, including PSO, Hub-Power and PTCL.

It finally ended recovered another 29.42 points at 1,714.94 as compared to 1,685.52 a day earlier, thanks to sharp increase in the values of leading base shares.

The interim dividend from PSO at 30 per cent was claimed below the market expectations as it lowers the per share earning to Rs3.15 from the previous year’s Rs9. But it remained under the squeeze of Lahore-based speculative parties since Tuesday as no one among the buyers was inclined to loosen his grip on the price line. It finally ended with a fresh rise of Rs9.10 at Rs131.70.

After tax profit fell to Rs452m from the previous Rs1.355bn owing to fall in sales at Rs63bn from Rs70.021bn for the half year, ended Dec 31, 2001.

“I don’t find any cogent reason behind the speculative support in PSO despite a long weekend ahead owing to Eid holidays,” a leading stock analyst at Ali Hussain Rajabali Securities says, adding “it is intriguing how the speculators have turned a bearish market into the bullish one.”

In market parlance, the long weekend holiday generally attracts selling as investors are not inclined to hold long positions in view of the dangers involved during the holidays.

He fears the up-country support may leave any time as it has been doing on such previous bull-runs and may leave behind a long list of casualties.

Stock analysts at W.E. Financials said memories of a default of last May and the consequent clearing crisis were still afresh in the minds of investors and there was fear that history could repeat itself if speculative run was not checked.

“With border situation still tense in the backdrop of Indian threat not to pull out troops and most of the good news already having been digested, the current run-up appears to be a bit untimely,” they add.

There was no reports of any significant activity both from the local institutional traders or foreign investors as the bulk of support was locally-based, notably from Lahore.

Plus signs again dominated the list under the lead of PSO, which spurted by another Rs9.10 followed by PICIC Commercial Bank, New Jubilee Insurance, Attock Refinery, Mari Gas, Shell Pakistan, Berger Paints, Dawood Hercules and Aventis Pharma, which rose by Rs1.50 to Rs2.40.

Wyeth Pakistan, which has resumed its downward trend led the list of leading losers, off Rs15, followed by Jahangir Siddiqui & Co, Crescent Steel, Millat Tractors, Mitchell’s Fruits, Lever Brothers and BOC Pakistan, falling by Rs2.35 to Rs4.

Trading volume was maintained at the overnight level of 191 million shares as advancing shares held a strong lead over the losing ones at 121 to 76, with 48 holding on to the last levels.

Hub-Power again led the list of actives, up 70 paisa at Rs28.50 on 83m shares, followed by PTCL, firm by 40 paisa at Rs18 on 32m shares, PSO sharply higher by Rs9.10 at Rs131.70 on 15m shares, Sui Northern steady by 35 paisa at Rs13.95 on 14m shares and KESC, higher by Rs1.10 at Rs7.65 on 8m shares.

Other actives were led by Lucky Cement, lower 60 paisa on 5.716m shares, Dewan Salman, easy 25 paisa on 4.920m shares, Fauji Fertiliser, off Rs1.45 on 3.918m shares, D.G. Khan Cement, lower 40 paisa on 3.410m shares, and Engro Chemical, up 75 paisa on 3.117 shares.

FUTURE CONTRACTS: Forward shares for both the maturing February and the distant March settlements also followed the lead of the ready counter as leading shares rose by Rs1.10 to Rs8.40 for Engro Chemical and PSO.