August 20, 2003	Wednesday	Jumadi-us-Sani 21, 1424

KARACHI, Aug 19: Stocks on Tuesday rose further across a broad front on strong follow-up support both from the local institutional traders and the foreign funds aided largely by higher final dividend by Shell Pakistan and an identical performance by Hub-Power.

The KSE 100-share index finished with an extended gain of 37.52 points at 4,305.05 adding Rs9bn to the market capitalization at Rs950bn.

A massive activity of 157m shares in Hub-Power allowed its share to resume its upward journey toward the crucial level of Rs50 before the announcement of the final dividend and indications are that the current squeeze on its floating stock could well prove a supporting factor.

The fresh buying euphoria reflected that investors have ignored the likely negative fallout of the proceedings in the National Assembly when it meets tomorrow if the opposition continues its protest on the LFO.

The KSE 100-share index again broke the psychological barrier of 4,300 at 4,301.33, up 37.52 points over the overnight close of 4,267.53, reflecting the strength of the leading base shares.

The board of directors of Shell Pakistan, which met here on Tuesday announced well above the market expectations final dividend at the rate of Rs25.50 per share, making the total for the year ended June 30, 2003 to Rs35 as it has already paid an interim dividend of Rs9.50 or 95 per cent on after-tax profit of Rs1.3bn. It compares favourably with the last year’s cash payout of 180 per cent.

However, post-dividend profit-selling by a section of investors who were also anticipating bonus shares, pushed its share value sharply lower by Rs20.90 at Rs460.10, with 1.591m shares changing hands.

Auto shares also maintained their upward drive aided by reports of higher dividend by Pak-Suzuki Company whose board meets tomorrow. Already its 10-rupee share is ruling well above Rs100, reflecting higher sales.

“The liquidity-driven rally supported by higher dividend is expected to manifest itself in a bigger way in the coming sessions, although news from the political front may not be that encouraging,” analysts said.

The calling of the parliament session tomorrow without any deal on LFO with the opposition may not be that smooth and its negative fallout is expected to take its toll in due course, they fear.

“I fear a big showdown between the government and the opposition as both have taken rigid positions on the LFO and the president’s uniform and could cause ripples in the political atmosphere,” says a leading broker.

All eyes were, therefore, focused on tomorrow’s National Assembly session and how the opposition behaves will set the future direction of the market, he adds.

Most of the overvalued running stocks remained in strong demand and led the market advance, major gainers among them being PSO, Bosicor Pakistan, which tested its upper limit ceiling rate at Rs29.65, ICI Pakistan, Sui Northern Gas, Fauji Cement and some others.

FFC-Jordan Fertilizer, however, remained under pressure despite reports of an interim profit of Rs720m for the half year ended June 30, 2003 after several lean years.

Major gainers were led by Glaxo-SKF, Al-Ghazi Tractors, and Grays of Cambridge, which posted gains ranging from Rs10.40 to Rs22 followed by Bhanero Textiles, Island Textiles, Packages, Javed Omer, Pakistan Oilfields after the reports of new oil and gas discovery, and Lakson Tobacco, up Rs5.90 to Rs9.35.

Losers were led by General Tyre, Attock Refinery, BOC Pakistan, Fazal Textiles, Gatron Industries, Clariant Pakistan and Parke-Davis, off Rs2.65 to Rs5.

Trading volume rose further to 668m shares from the previous 536m shares as the advancing shares maintained a strong lead over the losing ones at 207 to 154, with 50 shares holding on to the last levels.

Hub-Power was actively traded ahead of its board meeting, up 90 paisa at Rs44.90 on 157m shares followed by PTCL, easy 25 paisa at Rs36.90 on 84m shares, Fauji Cement, higher by 65 paisa at Rs12.40 on 74m shares, FFC-Jordan Fertilizer, off 90 paisa at Rs17.90 on 51m shares and Sui Northern Gas higher by Rs1.55 at Rs46.90 on 46m shares.

Other actives were led by Nishat Mills, higher by Rs2.75 on 26m shares, PSO, up Rs3.85 on 21m shares, Pakistan Oilfields, higher Rs5.90 on 20m shares, KESC, firm 20 paisa on 17m shares and Sui Southern Gas, steady 15 paisa on 15m shares.

FORWARD COUNTER: Hub-Power was also actively traded on the cleared list, up Rs1.10 at Rs45.30 on 21m shares followed by FFC-Jordan Fertilizer, off 95 paisa at Rs18 on 15m shares, PTCL, easy 10 paisa at Rs37.10 on 12m shares, PSO higher by Rs5.05 at Rs290.50 on 8m shares and Sui Northern Gas, up Rs1.75 at Rs47.25 on 6m shares.

DEFAULTER COMPANIES: Trading on this counter was relatively slow as leading investors remained busy on the ready section. However, shares of three dozen companies came in for active bouts of buying and selling under the lead of Financial Link Modaraba, off 40 paisa at Rs3.80 on 0.282m shares.

Other actives were led by Standard Bank, up five paisa at Rs6.50 on 0.388m shares and Biafo Industries, lower 15 paisa at Rs7.30 on 0.108m shares.

DIVIDEND: Security Investment Bank, interim dividend at the rate of 10 per cent for the year ended June 30, 2003.

BOARD MEETINGS: International Multi-Leasing Corporation on Aug 22, Al-hamd Textiles on Aug 23, Prime Commercial Bank on Aug 24, EFU Life Insurance, EFU General Insurance, Suzuki Motorcycles and Wyeth Pakistan all on Aug 25.