KARACHI, Aug 20: Stocks on Tuesday maintained upward drive under the lead of energy shares followed by active short-covering aided by reports of higher earnings and enhanced dividend. The KSE 100-share index posted a fresh rise of 11.45 points at 1,867.29.

Despite being in overbought position, both PSO, Shell Pakistan and some other leading shares came in for active support and rose sharply under the lead of PSO. Auto shares, notably Atlas Honda Cars, Indus Motors and Pak-Suzuki Motors also rose followed by changes in booking and transfer rules.

Higher than analysts expectations final dividend by Shell Pakistan took the market virtually by a storm as investors made heavy covering purchases in another oil giant PSO anticipating an identical payout.

The KSE 100-share index turned in a highly erratic movements rising and falling under the cross-current of alternate bouts of buying and selling but finally managed to end with an extended rise of 11.45 points at 1,867.29 on heavy short-covering in PSO and Shell Pakistan.

A final dividend at the rate of 140 per cent by Shell Pakistan, which together with the interim of 40 per cent makes the total for the year ended June 30, 2002 to 180 per cent compares favourably with its last two year’s 125 and 165 per cent, analysts said.

The performance of a leading MNC in a volatile oil market, notably after the deregulation of the POL products and fixation of prices each fortnight is credibly well, they said adding “in such conditions as the prevailing to clinch one’s market share is pretty difficult.”

All eyes are now focused on the final results of PSO on Thursday amid reports of a massive increase in earnings and higher final. It has already announced two interims totalling 75 per cent.

“Above market final dividend by Shell just on the heels of Lever Brothers’ final of 116 per cent eloquently speaks of corporate earnings by most of the leading shares, notably the MNCs,” brokers say adding “the market is a bit shy but will certainly react to the developing situation.”

“The question that is being debated in the rings is whether or not its management will come out with bonus shares,” says a broker but leading among them claim “it will as bonus issue is now overdue after the gap of last two years.”

PSO remained in strong demand throughout the session as both general investors as well as the financial institutions were not inclined to take even a technical breather and grabbed bulk of the floating stock.

Top gainers were led by SK&F, PSO, Treet Corporation, Lever Brothers and Pak Reinsurance, up by Rs.2.50 to 38. Dawood Cotton, Shafiq Textiles, Siemens, Security Papers, and Pakistan Hotels followed them, up Rs.1.45 to 2.05.

Losers were led by Packages, Unicap Modaraba, EFU Life Assurance, Javed Omer Vohra and Wyeth Pakistan, which suffered fall ranging from one rupee to Rs.5.

Trading volume fell to 117m shares from the previous 162m shares as advancing shares maintained a fair lead over the losing ones at 128 to 96, with 79 holding on to the last levels.

The most active list was topped by PSO, higher by Rs.3.95 at Rs.158.40 on 33m shares followed by Hub-Power, up 15 paisa at Rs.26.70 on 19m shares, Engro Chemical, firm by 75 paisa at Rs.62.30 on 9m shares, FFC-Jordan Fertilizer, up 30 paisa at Rs.6.75 on 8m shares and National Bank, steady by 30 paisa at Rs.23.70 on 7m shares.

Other actives included Adamjee Insurance, higher Rs.2.10 on 7m shares, PTCL, unchanged on 6m shares, MCB, firm by 35 paisa on 5m shares, Dewan Salman, higher 30 paisa on 4m shares and ICI Pakistan, steady 15 paisa on 3m shares.

FUTURE CONTRACTS: PSO remained in strong speculative demand ahead of its board meeting on Thursday and market talk of a higher final dividend, up Rs.3.70 at Rs.158.50 on 7.410m shares followed by Hub-Power, firm by 10 paisa at Rs.26.75 on 6.015m shares and FFC-Jordan Fertilizer, higher 30 paisa at Rs.6.80 on 1.017m shares.