KARACHI, Jan 28: Stocks on Wednesday finished with an extended gain but off the day's best level as mid-session profit-selling clipped in part initial gains in some of the leading shares. The KSE 100-share index gained another 21.28 points at 4,769.69.

The underlying sentiment, however, remained uppishly inclined as bulls were not ready to leave the arena despite a long weekend ahead. Apart from dividend-related covering purchases, reports of resumption of composite talks with India on some core issues from Feb 16 was another supporting factor behind the market's upturn.

The KSE 100-share index posted a fresh rise of 21.28 points at 4,769.69 as compared to 4,748.41 a day earlier, although late profit-selling in some of the lead base shares pushed it lower from the day's best bid of 4,790. The total market capital also rose by Rs9.195bn at Rs1,253.442bn.

Most analysts believe bulls are inclined to push the index to the crucial level of 4,800-point before the eid holidays but bears think otherwise and the tussle between the two is keeping highly volatile.

"It certainly hit the target today but below market expectations final cash dividend of 35 per cent by Engro Chemical Pakistan triggered a lot of selling in some other pivotals also", says a leading broker "Interim lower earnings of Hub-Power was another negative factor, allowing a lot of alternate bouts of buying and selling". Its directors say they will announce an interim dividend for the current year in March after the approval of the lenders.

The directors of Engro Chemical in their board meeting held on Wednesday announced a final cash dividend of 35 per cent making the total for the last year to 80 per cent as the company had already paid an interim dividend of 45 per cent. This compares unfavourably with the previous payout of 75 per cent cash and 10 per cent bonus shares.

Analysts said bargain-hunters could push the market below the current levels prior to eid holidays owing to a long weekend ahead but the future outlook appears to be bullish.

Plus signs again dominated the list, major gainers being National Refinery, Pakistan Refinery, Shafiq Textiles, Parke-Davis and Javed Omer, which posted gains ranging from Rs8.75 to Rs15.90 followed by IGI Insurance, Lakson Tobacco, Gatron Industries, Attock Refinery, Goodluck Industries, Dawood Hercules, Packages and Millat Tractors, up by Rs4.50 to Rs6.05.

Prominent losers were led by Nestle MilkPak, Siemens Pakistan and Unilever Pakistan, which suffered fall to the extent of Rs13, Rs19.45 and Rs50, respectively. Others which fell by Rs3 to Rs5 included Shell Pakistan, Aventis, Mitchell's Farms, Al-Ghazi Tractors, Security Papers and Clover Pakistan.

The interesting feature was that there was no massive activity in any of the volume of leaders as it was judiciously shared by all the current favourites, notably those with higher earnings.

Trading volume rose to 402m shares from the previous 356m shares as advancing shares maintained a strong lead over the losing ones at 256 to 120, with 43 shares holding on to the last levels.

The most active list was topped by Dewan Motors, up by Rs1.10 at Rs39.30 on 37m shares followed by Dewan Salman Fibre, higher by Rs1.25 at Rs24.80 on 36m shares, Lucky Cement, firm 90 paisa at Rs28.20 on 25m shares, FF Bin Qasim, steady by 35 paisa at Rs20.25 also on 25m shares, and Nishat Mills, higher by Rs1.85 at Rs39.85 on 24m shares.

Other actives were led by PTCL, firm by 10 paisa on 22m shares, D.G.Khan Cement, lower 20 paisa on 21m shares, Maple Leaf Cement, up by Rs1.40 on 15m shares, PIAC, higher by 60 paisa also on 15m shares and Bosicor Pakistan, up by 65 paisa on 14m shares.

FORWARD COUNTER: Engro Chemical came in for active selling followed by omission of bonus shares, and fell by Rs3.20 at Rs97.65 on 5m shares followed by FF Bin Qasim, up 30 paisa at Rs20.45 on 4m shares and Hub-Power, steady five paisa at Rs39 also on 4m shares. PTCL was marked up by 10 paisa at Rs38.05 on 3m shares, while Dewan Salman rose by Rs1.05 at Rs24.90 also on 3m shares. Nishat Mills rose by Rs1.80 at Rs39.90, while PSO fell by Rs1.45 at Rs284.55 on light volumes.