August 17, 2002	Saturday	Jamadi-us-Saani 7, 1423

KARACHI, Aug 16: Stocks on Friday resisted fresh decline as investors were back in the market lured by the perception of higher dividend by some leading companies whose board meetings are due during the next week and early next month.

“Investors pierced through the negative fallout of the SECP’s reform agenda at least for the near-term aided partly by reports of next Monday’s meeting between the contenders and a loud whispering about a compromise formula,” one member of the KSE hopes.

After opening lower by 10 points, the KSE 100-share index managed to finish with a modest rise of 2.28 points followed by active short-covering in PSO and some others ahead of their board meetings.

It finally ended at 1,843.26 points as compared to overnight’s 1,840.98 amid relatively better turnover figure, signalling that the market is expected to maintain its upward drive during the next week also.

“The tussle between the brokerage houses and the SECP bosses over the new reform agenda seeking to make the country’s bourses as independent corporate company rather a forum of a few brokerage houses is inevitable,” most stock analysts believe as “it could well mean a loss of authority and legal power they wielded since independence.”

But the reports of meeting between the delegation of the bourses and the SECP official possibly on next Monday seems to have lessened the prevailing tension in the corridors of the KSE generated by the SECP’s new demands.

What will be the brokers reaction to the new rules to be known after the Monday’s meeting and its outcome but indications are that the SECP high-ups will not waver and stick to its position as they did a year ago after implementing the first instalment of the reform agenda leading to full transparency to stock trading.

Stock analysts said the board meetings of some of the mega issues, including Shell Pakistan, PSO and Hub-Power, did not allow investors to leave the market amid rumours of a good dividend.

The resistance to further decline at the weekend session generally paves the way for a positive opening when the trading resumes next week on technical grounds alone.

Prominent gainers were led by Atlas Honda, Shell Pakistan ahead of its board meeting on Aug 20, Dilon, PSO and Pak Reinsurance, up by Rs2 to Rs36.65.

IGI Insurance, Al-Azhar Textiles, Shafiq Textiles, Gatron Industries and some others followed them, rising by one rupee to Rs1.50.

Losers were led by Millat Tractors, Treet Corporation, Gillette Pakistan, Nestle MilkPak and Wyeth Pakistan, off Rs1.50 to Rs10 followed by Exide Pakistan and Glaxo-Wellcome, falling by Rs1.15 to Rs1.35.

Trading volume showed a modest rise at 96m shares as compared to 87m shares but losers maintained a fair lead over the gainers at 111 to 94, with 56 shares holding on to the last levels.

The most active list was topped by PSO, sharply higher by Rs4.70 at Rs151.25 on 30m shares followed by Hub-Power, up by 10 paisa at Rs26.25 on 29m shares, PTCL, lower five paisa at Rs18.45 on 9m shares, Sui Northern Gas, up 45 paisa at Rs15 on 7m shares and National Bank, higher 25 paisa at Rs22.25 on 4m shares.

Other actives were led by Adamjee Insurance, up 35 paisa on 1.801m shares, ICI Pakistan, steady five paisa on 1.800m shares, Fauji Fertiliser, firm by five paisa on 1.417m shares, WorldCall, up 20 paisa on 1.351m shares and Dewan Salman, lower 10 paisa on 1.280m shares.

CLEARED LIST: PSO again came in for strong speculative support amid market talk of higher sales combined with upward revision in fortnightly POL prices. It rose by Rs4.25 in line with its ready board quote at Rs151.25 on 5.654m shares.

Among the most actives, Hub-Power was leading, up 15 paisa at Rs26.35 on 7.441m shares, followed by PTCL, unchanged at Rs18.55 on 1.345m shares. Sui Northern was also actively traded, higher by 40 paisa on 0.578m shares.

DEFAULTER COMPANIES: Suzuki Motorcycles again came in for modest support and rose five paisa at Rs3.80 on 9,000 shares followed by Allied Motors, unchanged at Rs11.05 on 2,500 shares. Burma Oil was marked down by 50 paisa at Rs8.50 on 1,000 shares, while others were traded fractionally.

DIVIDEND: Pak-Apex Leasing Company, cash 7.5 per cent for the year ended June 30, 2002.

BOARD MEETINGS: KASB Premier Fund, Central Insurance on Aug 20; Atlas Honda, Singer Pakistan, Muslim Insurance on Aug 21; KSB Pumps on Aug 23; and HinoPak Motors on Aug 26.