KARACHI, Sept 24: Stocks on Wednesday finished well above the early lows on active short-covering in most of the pivotals aided by higher than market expectations cash dividend of 35 per cent by the Pakistan Telecommunication Company (PTCL) for the last year. The KSE 100-share index fell by 18.06 points at 4,120.13 after at one stage breaching through the barrier of 4,100 points.

The KSE 100-share index early was off by 113 points on heavy renewed selling followed by reports of rejection of official constitutional package by the MMA leading to political uncertainty and fears of violence in case the opposition opts for agitation.

It finally finished with a fresh modest decline of 18.06 points at 4,120.13 after hitting the day’s highest and the lowest at 4,181.74 and 4,014.37 respectively, reflecting the negative fallout of the political undercurrent.

But the announcement of Rs3.50 or 35 per cent cash dividend by the PTCL board halted the market fall on heavy covering purchases by leading bargain-hunters and financial institutions. Its previous year’s payout was 27.5 per cent.

The EPS at the rate of Rs4.53 on profit of about Rs23 billion may continue to inspire fresh support in its share in the coming sessions despite the political uncertainty.

But post-dividend selling in it worried analysts as the decline in its share value from the day’s high of Rs38.75 to Rs36.95 at one stage, although close was higher at Rs37.90.

“Investors have to choose between the two equally unpleasant options”, one broker says “either they have to follow the market’s basic positive fundamentals or to be guided by the negative political perceptions”.

The chances of political stability or instability are equally balanced in the backdrop of rigid positions taken by the contenders of power but more powerful could be the ultimate winner.

However, in the process, the market may fall further lower being still in an overbought position and investor reluctance to do business in an uncertain political conditions.

Leading gainers were led by Parke-Davis, up by Rs56 on expectations of higher dividend followed by Unilever Pakistan, higher by Rs15, and Shell Pakistan, up by Rs12.10.

Other good gainers included BOC Pakistan, Indus Motors, Crescent Steel, Clariant Pakistan, Sana Industries, Thal Jute, EFU Life and Gatron Industries, up by Rs2.10 to Rs7.50.

Prominent losers were led by Pakistan Refinery, Grays of Cambridge and Javed Omer, off by Rs10.55, Rs18.50 and Rs35.50 respectively followed by National Refinery, Attock Refinery, Abbott Lab, Atlas Battery, Glaxo-SKF and Clover Pakistan, which suffered fall ranging from Rs4 to Rs7.60.

Trading volume rose sharply to 420m shares from the previous 341m shares but losers maintained a fair lead over the gainers at 234 to 109, with 30 shares holding on to the last levels.

The most active list was topped by the PTCL amid alternate bouts of buying and selling, lower 50 paisa at Rs37.90 on 126m shares followed by Hub-Power, higher by Re1 at Rs38.50 on 91m shares, FFC-Jordan Fertilizer, lower 55 paisa at Rs17.90 on 34m shares, Fauji Cement, easy 50 paisa at Rs10.70 on 24m shares and Pakistan Oilfields, off Rs3.10 at Rs367 on 19m shares.

Other actives were led by D.G.Khan Cement, off Rs1.90 on 11m shares, National Bank, lower Rs1.10 also on 11m shares, KESC, up 15 paisa on 9m shares, Sui Northern Gas, easy five paisa on 8m shares and PIAC, off Re1 on 6m shares.

CLEARED LIST: Barring a sharp rise of Rs1.65 in Hub-Power at Rs38.65 on 15m shares, others turned mixed. PSO also rose by 20 paisa at Rs276.10 on 9m shares, while PTCL and Sui Northern Gas, fell by five and 10 paisa at Rs37.80 and Rs37.80 on 2m and 26m shares respectively.