KARACHI, July 24: The share market on Monday resumed trading on an optimistic note as investors were not deterred by the developing situation on local political and Lebanon fronts and made fresh commitments on selected counters guided mostly by an attractive bait of higher corporate payouts.

Although it failed to sustain the initial run-up as day traders and bargain-hunters took profits at the inflated levels, the underlying sentiment at no stage showed signs of weakness.

The KSE 100-share index, therefore, maintained its upward drive boosted by active buying in the index-heavy shares, notably in oil, bank and cement sectors.

After touching the session’s peak level of 10,393.94 at one stage, the index finished with a clipped gain of 93 points at 10,350.63 on late selling, but some positive developments on the oil sector is expected to keep it on the higher side.

OGDC, Pakistan Petroleum, PTCL followed by National Bank, which has been under pressure at the fag-end of the last week following an increase of two percent in bank cash reserve requirements and perceptions of cut into its profits set the market trend for the new week trading.

The chief motivating force behind the current run-up was said to be market talk of higher dividend and capital gains, analyst Hasnain Asghar Ali said. “Both institutional traders and leading brokers are active buyers at the current level on selected counters enabling the market to maintain a steady posture.”

The market in part also derived its strength from news of an imminent sell-off of some of the mega state-owned units, including PSO and Global Depository Receipts (GDR) on the London Stock Exchange by OGDC and MCB Bank, he added.

“News from the political front may not be that encouraging and investors may have to decide to go by the attractive corporate baits or the undercurrent of political developments,” another analyst Faisal Abbas said.

The developing situation on the Middle East front in the backdrop of Syrian threat to step in if Israel launches ground attack on Lebanon could further aggravate the issue, brokers said.

Essentially being highly sensitive to negative political developments, the market seldom absorbed the negative undercurrent of turmoil and weighed down, they said.

The rollover week for the maturing July settlements has just begun but analysts said sailing was expected to be smooth, as selling may not assume an alarming proportions, analyst Ashraf Zakria predicts.

Leading gainers were led by Mustehkam Cement, Adamjee Insurance, PSO, Shell Pakistan, International Industries, Pak-Suzuki Motors, Abbott Lab, Ferozsons Lab, ICI Pakistan, Security Papers and MCB Bank, which posted gains ranging from Rs5 to Rs8.

Losses on the other hand were fractional baring Clariant Pakistan, which fell by Rs7.00 after an interim dividend of 50 per cent and Wyeth Pakistan, off Rs20. Thal Industries, IGI Insurance, Zulfiquar Industries and Hino Pakistan followed them, lower by Rs3.60 to Rs6.75.

Trading volume fell further to 212m shares from the previous 223m shares, but gainers maintained a strong lead over losers at 200 to 116, with 44 shares holding on to the last levels.OGDC topped the list of most actives, up 95 paisa at Rs138.40 on 24m shares, followed by MCB Bank, higher by Rs7.10 at Rs225.80 on GDR news on 20m shares, Telecard, firm one rupee at Rs13 on 18m shares, PTCL steady by 40 paisa at Rs43.80 on 16m shares, DG Khan Cement, up 75 paisa at Rs98.05 on 12m shares, Pakistan Petroleum, steady by 40 paisa at Rs240.90 also on 12m shares and National Bank, higher by Rs2.50 at Rs224.45 on 11m shares.

Other actives were led by WorldCall Telecom, lower by 15 paisa on 9m shares, Dewan Salman, up 90 paisa on 8m shares and Fauji Cement, easy five paisa on 7m shares.

FORWARD COUNTER: OGDC also led the list of advancing shares on this counter and was marked up by 70 paisa at Rs138.25 on 5m shares, MCB Bank, higher by Rs5.99 at Rs225.49 on 4m shares, and Telecard, up one rupee at Rs13 also on 4m shares.