KARACHI, Jan 22: The KSE 100-share index on Monday maintained its upward drive and breached through the barrier of 10,700 as leading base shares came in for fresh active support under the lead of MCB, National Bank and Hub-Power. It ended with a fresh gain of 64.56 points at 10,706.

The advent of the rollover week did, however, take its toll earlier in the session but a decisive role was played by the consolidation forces on the strength of expected higher payouts by the bank and other leading shares.

Lakson Tobacco was steadily heading towards purchase price offer of Rs666.89 per share by Philips Morris International and was quoted at Rs569.95 but there were not many sellers anticipating fresh rise in its share value. It has risen by Rs80 since the acquisition of its remaining shares by Philips Morris.

Trading resumed on cautious note but some of the leading investors continued to build-up long positions on selected counters anticipating higher dividend for the year ended Dec 31, 2206.

The market’s future bullish outlook was also evident from the sustained run-up of the KSE 100-share index, which continued to seek further higher levels on the strength of leading base shares.

It ended the opening session of the week with a fresh gain of 64.56 points at 10,705.87 as compared to 10,641.31, signalling that it is confidently driving to its new chart point of 11,000.

“The market sentiment was significantly boosted by the above market earnings of the fertiliser giant Engro Chemical,” analyst Faisal Abbas said, adding “it reinforced the investor perceptions of higher corporate announcements by some of the leading companies”.

It announced final dividend of Rs3 or 30 per cent but what enthused investors most was above market expectations earnings reflecting a steady growth over the last years, he added.

While Dawood Hercules has already paid dividend to its shareholders, Fauji Fertiliser and Fauji Fertiliser Bin Qasim are set to make identical announcements.

“Reports of an imminent sell-off of oil giant Pakistan State Oil (PSO) as 12 companies have been selected for the bid possibly in March is also an aiding factor,” stock analyst Ahsan Mehanti said.

Ashraf Zakaria said the dividend-driven rally was expected to be fully sustained in the coming weeks also as investors were not inclined to opt for a major sell-off at least for the near-term.

What could add further strength to the rising market are upcoming dividend announcements from the leading banks during the next couple of weeks preceded by a good bit of speculative buying and bargain-hunting, he added.

Leading gainers were led by Treet Corporation, Unilever Pakistan, Nestle Pakistan, Clariant Pakistan, EFU General, Rafhan Bestfoods, Lakson Tobacco and Siemens Pakistan, which posted gains ranging from Rs10.80 to Rs57.20. There were many other good gainers also.

Prominent losers included Wyeth Pakistan and Dawood Hercules, off Rs108 and Rs10.50 respectively followed by Central Insurance, Gatron Industries and Colgate Pakistan, which fell by Rs4 to Rs4.65.

Trading volume fell further to 128m shares from 150m shares a day earlier as sellers held on to their positions anticipating further increase in prices. Gainers outpaced losers by 181 to 133, with 35 shares holding on to the last levels.

The active list was topped by Hub-Power higher by 60 paisa at Rs31.40 on 12m shares followed By MCB, up by Rs4.10 at Rs274.10 on 9m shares, PTCL, lower 20 paisa at Rs49.85 on 8m shares, KESC, steady five paisa at Rs7.85 on 6m shares, National Bank, up by Rs1.25 at Rs259.90 also 6m shares, Fauji Fertiliser Bin Qasim, firm by 20 paisa at Rs30.25 on 6m shares.

Gharibwal Cement followed them, up by Re1 on 5m shares, Pakistan Petroleum, off 95 paisa on 4m shares, Engro Chemical, higher by Rs1.10 also on 4m shares and Kot Addu Power, up by Rs1.35 on 4m shares.

FORWARD COUNTER: PTCL led the list of actives on this counter, off 25 paisa at Rs49.95 on 11m shares, followed by its February settlement, up by 10 paisa at Rs50.30 on 9m shares, Hub-Power, up by 45 paisa at Rs31.40 on 7m shares, while its February contract rose 80 paisa at Rs31.75 on 6m shares.