KARACHI, July 29: Stocks on Thursday again turned lower as despite higher final dividend of 75 per cent by Pakistan State Oil investors were not inclined to make fresh commitments for no apparent bearish reasons.

There was a strong rumour of bonus shares in the market preceding the PSO cash final dividend but as it was omitted, post-payout selling pushed its price sharply lower by Rs6 and its negative fallout was visible elsewhere also.

The KSE 100-share index after early rise of 15 points, fell to finish lower by 47.57 points at 5,305.56 as compared to 5,351.33 a day earlier, reflecting the weakness of leading base shares under the lead of OGDCL. Market capital also fell by Rs12.441bn at Rs1,432.585bn.

The perception that dividend-driven rally could put the market back on the sustainable levels seems to have no relevance to the objective conditions and the investor preferences as was reflected by the market's either-way movements.

Higher carryover rates above 12 per cent did worry investors who are not inclined to take new positions until the market sheds its extra load, one broker predicts.

The opening was, however, on the higher note, what the dealers called the spillover demand and partly to reports that the OGDCL will offer Global Depository Receipts (GDR) to foreign investors during the next couple of weeks.

But subsequent reports that its 10 to 15 per cent shares will be offered to foreign investors at much lower rates triggered selling in its share, which has 22 per cent weightage in the index and pulled the market down from the overnight highs.

PSO final payout at the rate of 75 per cent was on the higher side as it had already paid two interims of 100 per cent, making the total for the last year to 175 per cent (previous 160 per cent).

"But investors were also expecting bonus shares in addition to cash payout, which were omitted owing to its planned disinvestment by the end of the current year," analysts said.

Its share value, fell by Rs6 on post-dividend profit-selling. At one stage it was quoted as low as Rs256.90. A cash payout at the rate of 25 per cent by the management of Engro Chemical despite increase in sales was, however, on the lower side of investor perceptions and triggered selling in its shares, they said.

Minus signs again dominated the list under the lead of Pak Elektron, Al-Ghazi Tractors, Pakistan Refinery, Javed Omer, Glaxo- SKF, PSO, which shed Rs6 on post-dividend selling, and Arif Habib Securities, off Rs3.65 and Rs10. Mehmood Textiles, Fauji Fertilizer whose dividend is expected on Friday and Murree Brewery, off by Rs2.90 and Rs3.50.

Some of the leading shares on the other hand managed to finish with good gains, leading among them being Sitara Chemical, Packages, Pakistan Cables, Jahangir Siddiqui Bank, Lakson Tobacco, Ferozosons Lab and International Industries, up by Rs3.50 to Rs14.35, largest rise being the last three.

Trading volume fell to 173m shares from the previous 232m shares as losers forced a strong lead over the gainers at 188 to 98, with 31 shares holding on to the last levels.

National Bank again topped the list of actives, off Rs1.10 at Rs72.45 on 20m shares followed by F.F. Bin Qasim Fertilizer, up 50 paisa at Rs19.70 on 18m shares, Bank of Punjab, steady by five paisa at Rs66.35 on 17m shares, OGDCL, off 80 paisa at Rs65.25 also on 17m shares, Askari Bank, higher by Rs1.70 at Rs74.15 on 15m shares, PTCL, lower 40 paisa at Rs43.95 on 10m shares and PSO, sharply lower by Rs6 at Rs257 also on 10m shares.

Other actives were led by D.G. Khan Cement, lower 60 paisa on 7m shares, Maple Leaf Cement, easy 45 paisa on 5m shares and Nishat Mills, off Rs1.55 also on 5m shares.

FORWARD COUNTER: Pakistan Petroleum came in for modest support at the lower levels and rose by 15 paisa at Rs109.95 on 5m shares, while on the other hand PSO came in for active post-dividend selling and fell by Rs6.45 at Rs258 also on 5m shares.