KARACHI, March 4: Stocks on Thursday maintained their upward drive across-the-board under the lead of energy and cement sectors amid predictions of higher interim earnings and enhanced dividends.
The KSE index rose by 34.27 points at 4,888.11.
However, an interim dividend of 16 per cent by Hub-Power gave the needed push to a hesitant market as investors were back in the rings and made fresh covering purchases in most of the second-liners and blue chips at the lower levels.
The announcement, however, did not generate much speculative buying in its share apparently on the perception that the payout may not be that impressive taking into account the size of the company and its earning capacity, despite the fact that the final could be much higher.
The KSE 100-share index posted a fresh gain of 34.27 points at 4,888.11 after hitting the day's best level of 4,897.28 but failed to break the barrier of 4,900.
Analysts who are eyeing the index level of 5,000 are divided over its near-term sustainable level, although all agree that it is not that far in given corporate scenario and positive basic fundamentals.
Reports that OGDCL, with a capital outlay of Rs50 billion and massive carryover profit of Rs25, is planning to market its Global Depository Receipts (GDRs) on the foreign markets during the next couple of weeks evoked good interest in its share for the second day in a row.
Already, massively capitalized companies, PTCL and Hub-Power, had successfully launched their GDRs on the world stock markets at much higher rates and both are still ruling firm.
The negative fall-out of the Quetta carnage was still there but a section of investors opted for normal trading in anticipation of higher dividend by some of the leading companies whose board meetings are due during the current and next week.
Much of the support confined to the current favourites was dividend-related and if the current galore of dividend announcements is taken as an example the other could be lined with them, brokers said.
However, bulk of the support remained confined to energy, banking and cement sectors followed by reports of higher interim earnings and rumours of good dividend.
Plus signs dominated the list, major gainers being Gatron Industries, Shell Pakistan, Thal Industries, Parke-Davis, Atlas Battery and Unilever Pakistan, which rose by Rs7.70 to Rs25.
Other good gainers were led by Abbott Lab, Dilon, Pakistan Oilfields, Dawood Hercules, Noon Sugar, Pak Elektron, Dreamworld and Ferozsons Lab, up Rs3 to Rs6. Prominent losers were led by Gul Ahmed Textiles, EFU Life, Sapphire Fabres, Pakistan Gum Chemicals, Bolan Casting, Arif Habib Securities and Fateh Textiles, off Rs2 to Rs22.40.
ABAMCO Fund made its debut after the merger of three ICP funds at its face value of Rs10, but steadily advanced to finish at Rs16.90 after hitting the day's best bid at Rs20, higher Rs6.90 on 7,500 shares.
Trading volume soared to 311m shares from the previous 187m shares as the advancing shares forced a strong lead over the losing ones at 246 to 126, with 42 shares holding on to the last levels.
OGDCL again topped the list of most actives, up 35 paisa at Rs52.75 on 40m shares followed by Sui Northern Gas, firm by 55 paisa at Rs57.30 on 37m shares, PIAC, steady by 30 paisa at Rs25.25 on 31m shares, D.G. Khan Cement, higher by Rs145 at Rs46.65 on 28m shares and KESC, firm by five paisa at Rs8.75 on 22m shares.
Other actives were led by PTCl, steady by five paisa on 17m shares, Hub-Power, firm by 10 paisa also on 17m shares, FF Bin Qasim, up 40 paisa on 14m shares, Maple Leaf Cement, higher by Rs95 paisa on 10m shares and Pakistan Oilfields, higher by Rs3.60 on 9m shares.
FORWARD COUNTER: Sui Northern Gas again came in for active support and rose by 65 paisa at Rs57.25 on 6m shares followed by PTCL, firm by five paisa at Rs39.85 on 4m shares, Hub-Power, higher 20 paisa at Rs37.50 also on 4m shares, FF Bin Qasim, up 40 paisa at Rs20.25 on 3m shares and PSO, lower 15 paisa at Rs286.45 on 2m shares.
DEFAULTER COMPANIES: Crescent Spinning remained in strong demand and finished further higher by 60 paisa at Rs5.65 on 3.068m shares followed by Qayyum Textiles, up 70 paisa at Rs2.40 on 0.463m shares and Nazir Cotton, firm by 35 paisa at Rs5 on 1.311m shares. Some others were also actively traded on the higher side.
DIVIDEND: Meezan Bank, maintained at the rate of cash five per cent, stock dividend 10 per cent; Singer Pakistan, cash 10 per cent; Clariant Pakistan, cash 70 per cent (previous 110 per cent); and Islamic Modaraba, interim cash five per cent.
BOARD MEETINGS: UDL Industries and Bolan Bank, on March 5; Shahmurad Sugar, on March 6; Mashreq Bank Pakistan, on March 8; Dawood Hercules and Sitara Chemicals, on March 9.
