August 23, 2002	Friday	Jamadi-us-Saani 13,1423

KARACHI, Aug 22: The prevailing dividend-led bull run further intensified on the stock market on Thursday followed by heavy buying triggered by reports of above investor expectations final dividend plus bonus shares by the Pakistan State Oil (PSO). The KSE index surpassed the barrier of 1,900 points around 1,925, adding over Rs10 billion to the market capitalization.

After mid-session, the market witnessed a new phenomenon as buyers far out-numbered the sellers as investors continued to build up long positions in Hub-Power amid market talk of a higher final dividend. It was massively traded turning out a largest single-session volume of 132m shares, up Rs1.65.

A final dividend of 80 per cent plus bonus shares at the rate of 20 per cent by the oil giant PSO took the market virtually by a storm as investors made massive buying in Hub-Power and some other leading shares for identical perceptions about the final payouts.

An idea of buying euphoria may well be had from the fact that the volume figure swelled to year’s peak level of 316m shares, enabling the KSE 100-share index to breach through the psychological barrier of 1,900 at 1,924.77 points. The net rise being 51.77 points or three per cent. It was for the third time that it attained the coveted level of 1,900 points.

The market sentiment in part was also influenced favourably by the constitutional amendments made by the president, ensuring a five-year term for him as president after elections as well as the army chief.

The perception of continuity of current economic policies enthused investors and they flooded the market with fresh buystops in blue chips.

However, the bull-run was essentially dividend-related as positive corporate news, which followed in quick succession just on the heels of higher dividend by Lever Brothers and Shell Pakistan did not allow investors to take even a technical breather.

“What seems to have triggered buystops in PSO was the issue of bonus shares after a gap of couple of years”, says a leading stock analyst “It was a pleasant surprise for everybody as even well-informed among them failed to get a cue of them”.

Most analysts say the 20 per cent bonus shares along with a cash dividend of 80 per cent plus 50 per cent interim already paid by PSO could well prove a double-edged weapon both for the genuine and speculative investors in the coming weeks.

Its share value finished close to the circuit breaker, up Rs11.80 at Rs169.55 with 27m shares changing hands at this higher level.

“Just following the lead of these mega issues, investors are building up long positions in other pivotals too, anticipating an identical announcements, notably Hub-Power whose board will meet by the next month”, they added.

All the leading shares rose in unison as investors also covered positions on some of the second-liners at the lower levels.

Big gainers were led by Adamjee Insurance, Pakistan Oilfields, Millat Tractors, Lever Brothers and Shell Pakistan, up by Rs2.20 to Rs11.75. Wyeth Pakistan and Shell Pakistan being on the top, up Rs10 and Rs11.75.

Other leading shares including ICP SEMF, Pak Reinsurance, Lakson Tobacco, Dawood Hercules, ICI Pakistan and Shafiq Textiles also rose by Rs1.70 to Rs1.95.

Losers were led by Exide Pakistan, Kohinoor Weaving, Abbott Lab and Javed Omer, off one rupee to Rs2, while all others fell fractionally.

Trading volume soared to 316m shares as gainers held a strong lead over the losers at 174 to 63, with 59 shares holding on to the last levels.

Hub-Power topped the list of most actives, up Rs1.65 at Rs28.55 on 131m shares, PTCL, firm by 75 paisa at Rs19.50 on 47m shares, PSO, sharply higher by Rs11.80 at Rs169.55 on 27m shares, Engro Chemical, higher Rs1.20 at 65.50 on 22m shares and Sui Northern Gas, higher 45 paisa at Rs15.45 on 12m shares.

Other actives were led by FFC-Jordan Fertilizer, firm by 15 paisa on 11m shares, ICI Pakistan, higher Rs1.70 on 9m shares, Dewan Salman, up 65 paisa also on 9m shares, National Bank, higher 35 paisa on 8m shares and MCB, steady by 10 paisa on 7m shares.

CLEARED LIST: Turnover figure rose to a record level of 42m shares followed by heavy speculative buying in Hub-Power, which accounted for about 21m shares, up Rs1.50 at Rs28.50.

Engro Chemical and PSO also rose by Rs1.60 and Rs11.85 at Rs65.70 and 169.95 on 2.225m and 6.754m shares respectively. PTCL was up by 65 paisa at Rs19.45 on 7.827m shares.

DEFAULTER COMPANIES: Suzuki Motorcycle again came in for active support and rose five paisa at Rs4.55 on 19,500 shares followed by Mehran Jute, firm by five paisa on 2,500 shares and Allied Motors, unchanged at Rs11 on 1,500 shares.

BOARD MEETINGS: Wyeth Pakistan on Aug 26, Hihgnoon Lab, Union Leasing on Aug 27, Haydari Construction, Glaxo-Wellcome Bank Al-Habib, Habib Arkady on Aug 28, Adamjee Insurance and Habib Insurance on Aug 29.

DIVIDEND: International Investment Bank, bonus shares at the rate of 15 per cent, Atlas Honda cash 60 per cent, Security Leasing Corporation nil, PSO final cash 80 per cent plus bonus shares of 20 per cent, 50 per cent interim already paid.

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