KARACHI, Sept 15: Stocks on Thursday maintained bullish outlook as dividend-inspired buying figured prominently on cement and bank sectors and evoked sympathetic covering purchases on other counters in a briskly traded session.

Although session’s best levels could not be held owing to late selling, dealers termed it consolidation process and has nothing to do with the positive basic fundamentals.

The continued weakness of PTCL in a rising market did worry leading analysts who attribute selling in it to keep its share value around the current level before the management change by the end of September.

The market’s buoyant mood was also well reflected in the KSE 100-share index, which briefly tested the level of 8,000 points but failed to sustain it on late profit-selling in some of the leading base shares under the lead of PTCL.

However, it signalled more than one ways that level is now not an elusive goal and could be surpassed any time on the strength of bank and cement shares where rumours of higher dividends continue to inspire fresh covering purchases.

It finally finished with a fresh rise of 22.98 points at 7,979.48, as compared to 7,956.50 a day earlier, after hitting the day’s highest and the lowest at 8,033.30 and 7,956.50, respectively.

Trading volume soared to 451m shares from the previous 345m shares a day earlier, as all the dozen actives were briskly traded under the lead of DG Khan Cement, Fauji Cement and National Bank. Gainers again topped losers by a fair margin at 191 to 136, with 36 shares holding on to the last levels.

The sharp increase in the turnover figure was attributed to the market talk that in a recent meeting the officials and leading brokers have agreed to enhance the limit of amount under the newly-introduced Continuous Funding System (CFS) replacing the decades-old badla financing from Rs25 billion to an mutually agreed total.

The capped limit of Rs25 billion under the CFS was surpassed last week and brokers felt it was necessary to raise it to keep the market funding needs fully met. The figure could touch the high mark of Rs50 billion if the current mood of investors was sustained, brokers said.

Unlike the previous sessions, the big chunk of the volume was not confined to single active scrip but the big total was judiciously shared by all the leading shares, a good omen leading to a broad-based rally, analysts said.

“Essentially, it is a dividend-linked rally and could go any farther on the strength of speculative buying and bargain-hunting, as it demonstrates that genuine investment buying is gradually making deeper inroad on the profit-sharing shares,” they added.

Millat Tractors whose board meeting is due next week again came in for active support and rose by Rs11.75, while Wyeth Pakistan rose recovered in part the overnight loss, up Rs20. Other good gainers were led by Rafhan Maize, Colgate Pakistan, National Refinery, Attock Refinery, EFU Life Insurance, Dawood Hercules, and Millat Tractors, which posted gains ranging from R4 to Rs11.75.

Losers were led by Artistic Denim and Noon Pakistan, off Rs8.65 and Rs9, respectively, on early selling at the higher levels, followed by Central Insurance, Shell Pakistan, Al-Ghazi Tractors, Bhanero Textiles and Noon Pakistan, off Rs4.80 to 9, respectively.

DG Khan whose board meeting is due next week again topped the list of actives, up Rs1.95 at Rs72.40 on 73m shares, followed by PTCL, off 75 paisa at Rs64.15 on 56m shares, Fauji Cement, higher 95 paisa at Rs16.35 on 49m shares, OGDC, firm 10 paisa at Rs110.25 on 32m shares, National Bank, up 90 paisa at Rs128.50 on 31m shares, MCB, higher by Rs2.35 at Rs121.05 on 20m shares, Bank of Punjab, steady by 35 paisa at Rs106.90.

Other actives were led by Pakistan Petroleum, up Rs2 on 16m shares, Nishat Mills, off 65 paisa on 13m shares and Fauji Fertilizer Bin Qasim, easy 45 paisa on 12m shares.

FORWARD COUNTER: PTCL came in for active selling and led the list of actives, off 60 paisa at Rs64.80 on 21m shares, followed by DG Khan Cement, up Rs1.90 at Rs72.85 on 13m shares and OGDC, steady 15 paisa at Rs111.15 on 12m shares.