KARACHI, Sept 5: Stocks on Monday tended further higher across the board on active follow-up support aided by reports of higher payouts and bonus shares under the lead of Attock Refinery and some others. The KSE 100-share index crossed the barrier of 7,800 at 7,849.06 points. But a 30 per cent bonus in addition to 20 interim already paid by Attock Refinery was on the higher side of market expectations, as 50 per cent bonus shares added significantly to investor incomes, analysts said.
Interim bonus shares at 20 per cent by Bank Al Habib, and 15 per cent bonus and 25 per cent cash by the management of Atlas Battery were also well received by the investors.
After several abortive attempts, the KSE 100-share index finally crossed the barrier of 7,800 points on renewed support aided by reports of higher corporate earning under the lead of National Bank.
The index ended the session higher by 59.30 points at 7,849.06, as compared to 7,789.76 at the last weekend, reflecting the strength of leading base shares, notably PTCL, OGDC and Pakistan Petroleum. The day’s lowest and highest were touched at 7,824.73 and 7,874.38, respectively.
Although the management of National Bank did not declare any interim dividend or bonus shares, it generated a lot of speculative buying. Earning per share at Rs7.44 at the current rates is an attractive bait for any prospective investors, brokers said.
Finally, it finished around Rs120.40, up Rs1.90 over the previous close, considered a higher rise in a 10-rupee share. The brokers predict a fresh increase in its share value, probably to its pre-reaction level of Rs160.
“I don’t thing next Friday’s opposition general strike against the policy of the government could halt the dividend-linked rally,” says a leading analyst. “There could be a brief interruption here and there, but it appears difficult to check the current investor enthusiasm about the share business.”
Major political parties have outlined an anti-government drive in phases, but the government appears to be firmly settled owing to economy recovery, and those who matter are not inclined to take that line despite chances of violence.
Higher dividends pouring in each session, notably from bank and energy shares followed by leading shares on other counters, have made many a millionaire just in few sessions and that is why no one is inclined to get out at least for the near-term, the analyst says.
During the last couple of weeks, the market has sought higher levels after each fall and there appears to be no immediate depressant that could work against the general optimism, analysts said.
Moreover, higher than market expectation cash dividend and bonus shares, and many other in the pipeline, the investors hate to seek other investment avenues at the moment, although stray outflow of money to the bullion market is there, they say.
Plus signs again dominated the list under the lead of Pakistan Refinery and Wyeth Pakistan, up Rs12.30 and Rs48.50, respectively, followed by Adamjee Insurance, IGI Insurance, Attock Refinery, Haroon Oils, Pak Suzuki Motors, PNSC, Abbott Lab and Aventis, up Rs3.80 to Rs7.70.
Losses on the other hand were mostly fractional and reflected lack of support rather than larger selling, notable among them being Lakson Tobacco, Pakistan Tobacco, Attock Petroleum, Pakistan Oilfields, Atlas Battery, Pakistan Services and National Foods, off Rs2.75 to Rs7.60, but the largest decline of Rs18.10 was noted in National Refinery.
The trading volume showed a modest rise at 276m shares from the previous 272m shares, as gainers held a comfortable lead over losers at 160 to 118, with 40 shares holding on to the last levels.
PTCL topped the list of most actives, up Rs1.05 at Rs65.30 on 57m shares, followed by OGDC, higher by Rs1.25 at Rs115.90 on 46m shares, National Bank, up Rs1.90 on 36m shares, NCB, firm by 45 paisa at Rs109.10 on 19m shares, and Bank of Punjab, up 25 paisa at Rs98.75 on 16m shares.
Other actives were led by Pakistan Oilfields, off Rs4.35 on 15m shares, Fauji Fertilizer Bin Qasim, steady 30 paisa on 13m shares, Pakistan Petroleum, higher by 80 paisa on 12m shares, DG Khan Cement, firm by 25 paisa on 8m shares, and PSO, up Rs2.50 also on 8m shares.
FORWARD COUNTER: PTCL was also actively traded on the cleared list and rose by 70 paisa at Rs65.60 on 11m shares, followed OGDC, firm by 95 paisa at Rs116.60 on 7m shares, National Bank, higher by Rs1.30 on 6m shares, PSO, up Rs2 at Rs382.50 also on 6m shares, and Pakistan Petroleum, higher by 90 paisa at Rs184.65 on 6m shares.
DEFALTER COS: Barring Crescent Board and Ghandhara Industries, which rose by one rupee to Rs1.70 on stray support and closed at Rs16.10 and Rs38.15, respectively, all others showed fractional either-way changes amid slow trading.
DIVIDEND: Attock Refinery, bonus shares at the rate of 30 per cent; Atlas Battery, cash 25 per cent, bonus 15 per cent; National Foods, cash 15 per cent; Tata Textiles, cash 10 per cent; Bank Al Habib, interim bonus shares at the rate 20 per cent; and Prudential Discount House, nil.
BOARD MEETINGS: Kohinoor Energy, on Sept 8; Atlas Honda and Haji Dossa, on 9; Guardian Modaraba, Jahangir Siddiqui Capital Markets, on 10; Attock Petroleum, Pakistan Oilfields, Attock Cement, on 11; PNSC, on 14; Security Leasing, on Sept 15.
