August 04, 2006	Friday	Rajab 8, 1427

KARACHI, Aug 3: Stocks on Thursday rose across-the-board on active buying on selected counters under the lead of bank shares aided by market talk of higher dividends.

The KSE 100-share index maintained its upward thrust on the strength of leading base shares and finished further higher by 109.17 points or 1.03 per cent at 10,667.49 as compared to previous 10,558.32 points.

Higher dividend by Pakistan State Oil Company (PSO) at the rate of 340 per cent triggered hectic buying on the other counters ahead of their board meetings, cement and bank shares being in the lead.

A final cash dividend of 180 per cent (160pc interim already paid), with EPS at Rs43.87 as against previous year’s 33.17 per cent, an increase of about Rs11 reflects a massive change PSO’s future growth outlook, predicts a leading stock analyst Faisal Abbas. It compared favourably with the last year’s 260 per cent.

But selling by those who had some prior information about the things to come had pushed its share value ahead of its board meeting to Rs384 liquidated long positions at the peak and bailed themselves out pushing its share down to Rs372 at the close, he said.

“I foresee its share value around Rs425 on the strength of its earning growth not in a very distant future,” Faisal Abbas said “but after the initial dust raised by the tactical selling settles down.

Shell Pakistan followed the pattern of PSO ahead of its board meeting and market talk of higher dividend. It ended higher by Rs28.35 at Rs595.35.

The buying euphoria in the leading bank shares, notably MCB, which closed around its upper-lock followed by National Bank and Bank of Punjab shows that the market is inching up to its next index target of 11,000 points, analyst Hasnain Asghar Ali said.

But Zia Javed of a leading brokerage house foresees a fresh price flare-up in the coming sessions as the dividend-driven run-up is still inconclusive sans the bank and cement payouts.

The broader market, therefore, came in for strong support under the lead of bank and leading petroleum shares ahead of their board meetings and market talk of higher payouts, taking other sectors along with them in the plus territory.

Leading gainers were led by Shell Pakistan and Wyeth Pakistan, up by Rs28.35 and Rs50. Other good gainers included MCB, Adamjee Insurance, National Refinery, Al-Ghazi Tractors, Pak-Suzuki Motors, Dawood Hercules, AKD Securities, Rafhan Bestfoods, Colgate Pakistan and Millat Tractors, which posted gains ranging from Rs5 to Rs16.05, the largest being in Millat Tractors.

Shell Gas and Nestle Pakistan led the list of losers and fell by Rs12.50 and Rs20 followed by Javed Omer, Arif Habib Securities and Mustehkam Cement, off Rs5.60 to Rs8.

Trading volume fell to 217m shares from the previous 270m shares but gainers held a strong lead over the losers at 172 to 87, with 35 shares holding on to the last levels.

MCB topped the list of actives, closing around its upper limit, up by Rs8 at Rs234 on 23m shares followed by D.G. Khan Cement, higher by Rs3.70 at Rs101.40 on 18m shares, PTCL, unchanged at Rs44.65 after briefly touching the peak at Rs45.75, National Bank, firm by Rs15 at Rs233.45 on 16m shares, OGDC, up by 60 paisa at Rs142.85 on 14m shares, Bank of Punjab, higher by Rs1.90 at Rs85 on 11m shares and Pakistan Petroleum, higher by Rs2 at Rs257 also on 11m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, up by Rs1.25 on 14m shares followed by PICIC, higher by Rs2.15 on 11m shares and PSO, off Rs3 on 8m shares.

FORWARD COUNTER: MCB also came in for strong demand on this counter and rose by Rs7.55 at Rs235.55 on 7m shares, followed by D.G. Khan Cement, higher by Rs3.30 at Rs102 on 5m shares and National Bank, firm by Rs2.85 at Rs235.75 on 4m shares, both the leading banks were quoted at par for the first time after MCB rose sharply.

PSO followed them, lower 25 paisa at Rs375.05 on 4m shares and OGDC, up by 50 paisa at Rs144 also on 4m shares. Others were modestly traded.

DEFAULTER COS: Barring Norrie Textiles, which showed a fractional rise of five paisa a Rs2 on 0.108m shares, others were modestly traded amid slow ready off-take in the absence of strong demand.

DIVIDEND: Meezan Bank, interim bonus shares at the rate of 10 per cent and right shares of 50 per cent at par, subject to official approval but they would not qualify for the bonus issue.

BOARD MEETINGS: Colony Mills, on Aug 7, AKD Index Tracker Fund, Sigma Leasing, on Aug 9, Hub-Power, Pakistan Gum & Chemical, on Aug 10, Javedan Cement, on Aug 12.