Stocks recover 25 points on dividend-related buying
By Our Staff Reporter
KARACHI, Aug 26: Stocks on Thursday recovered from the recent lows on active short-covering on selected counters aided by reports of higher dividend by some of the leading companies.
The market was in search of some morale boosting factors for the last couple of sessions, which came in the form of higher dividend by Bank of Punjab and Pakistan Petroleum and bulls cashed in on them immediately.
The KSE 100-share index recovered 25.67 points at 5,381.09 as compared to 5,355.22 a day earlier, reflecting the strength of leading base shares sans OGDC, which fell fractionally.
The dividend-driven rally is expected to be sustained by the next week also as board meetings of some of the leading companies are due next week amid market talk of higher payouts by most of them, brokers said.
"Together with election of Shaukat Aziz as the next prime minister possibly after the National Assembly meets on Friday, his perceptions about the economy as well as the corporate sector are sure to prevail on the stock market in future trading", some analysts predict.
An important announcement came from the board of directors of Pakistan Petroleum, which declared a cash dividend of 25 per cent, the earning per share (EPS) being Rs9.65 per share of Rs10 currently being quoted at premium of Rs45.
The board of directors of Bank of Punjab announced dividend of 20 per cent, the EPS being Rs7.07. Both the shares have been trading sharply higher against their face values owing to heavy buying in the recent price flare-up.
Share values of the both were marked up by Rs3.30 and Rs2.05 respectively amid large turnover at the higher levels. Owing to last couple of sessions persistent pruning, leading shares as well as those having potential of capital gains had reached an attractively lower levels and lured strong buying.
Plus signs dominated the list under the lead of Jahangir Siddiqui Bank, EFU Life Insurance, Murree Brewery, Arif Habib Securities, Reckitt and Benckiser, Pakistan Services and Atlas Honda, which posted gains ranging from Rs6 to Rs16. Zaman Textiles rose by Rs19.75 but without any deal.
Other good gainers were led by Ghandhara Diesel, Gatron Industries, Atlas Battery, Security Papers and Colgate Pakistan, up by Rs3 to Rs5. Losers were led by Pak-Suzuki Motors, Suraj Cotton, Bata Pakistan, Noon Pakistan, Rafhan Maize and National Refinery, off Rs1.80 to Rs8.
Trading volume showed a modest rise at 169m shares from the previous 158m shares as advancing shares forced a strong lead over the losing ones at 192 to 127, with 42 shares holding onto the last levels.
Bank of Punjab topped the list of actives, up by Rs2.05 at Rs68.05 on 40m shares followed Askari Bank, higher by Rs2.05 at Rs80.75 also on 18 shares, OGDC, lower 25 paisa at Rs66 on 14m shares, D.G.Khan Cement, up by 15 paisa at Rs57.15 on 9m shares and National Bank, steady 30 paisa at Rs71.40 on 7m shares.
Other actives were led by Japan Power, higher by 70 paisa on 14m shares, F.F.Bin Qasim, firm by 20 paisa on 8m shares, Pioneer Cement, up by 30 paisa on 5m shares, Pakistan International Containers, higher by Rs1.80 also on 5m shares and Fauji Cement, steady 15 paisa on 4m shares.
FORWARD COUNTER: Pakistan Petroleum came in for strong buying at the lower level and spurted by Rs3.30 at Rs108.70 on 40m shares followed by PTCL, unchanged at Rs42 on 2m shares, F.F.Bin Qasim, up by 20 paisa at Rs22.05 on 2m shares, OGDC, lower 39 paisa at Rs66.20 also on 2m shares and Pakistan Strategic Fund, easy by 20 paisa at Rs9.70 on 2m shares.
DEFAULTER COS: Crescent-Standard Bank led the list of actives, up by 35 paisa at Rs11.60 on 0.677m shares followed by Indus Polyester, lower 30 paisa at Rs6.30 on 0.120m shares and Taxila Engineering, sharply higher by Rs1.50 at Rs7.50 on 0.111m shares.
DIVIDEND: Pakistan Petroleum, final cash 25 per cent, an interim of 20 per cent already paid, Bank of Punjab, cash 20 per cent, cash 20 per cent and Standard Chartered Modaraba, cash 25 per cent.
BOARD MEETINGS: Service Industries, on Aug 28, Faysal Balanced Fund, Atlas Investment Bank on Aug 30, Wazir Ali Industries, on Sept 1, Zulfiqar Industries, on Sept 2, Atlas Honda on Sept 3, and Pakistan Papers Products, on Sept 4.
