KARACHI, Aug 19: Stocks on Monday showed widespread gains as investors covered positions in most of the pivotals, allaying fears of widely speculated showdown between the apex regulatory body and the brokerage houses over the new reform agenda. The KSE 100-share index ended with a fresh rise of 12.58 points at 1,855.84.

The dividend-driven was so strong that it did not allow bears to tilt the balance in their favour despite several abortive bids. An interim dividend of 116 per cent by Lever Brothers Pakistan and predictions of an identical announcements by some other leading companies continue to inspire fresh short-covering by all and sundry.

“Market talk of a stock dividend by the oil giant PSO and its early sell-off seems to have allowed brokers to forget, at least for the near-term, about the fresh demands of the SECP, which seek to bring them in the ambit of fresh rules,” says an analyst. “A large volume, good gains in most of the leading shares signals that brokerage are divided on the new transparency rules.”

Most leading stock analysts predict that the near-term outlook appears bullish despite fears of a showdown between the top hierarchy of the KSE and the SECP high-ups in the coming weeks as the bait of capital gains will not allow investors to sit on the sidelines.

“September could well be an eventful month for the share business as most of the mega issues, including Hub-Power, will announce their final dividend which could take market to new highs,” they added.

An interim dividend at the rate of 116 per cent by Lever Brothers Pakistan seems to have signalled that other MNCs may follow it allowing the bulls to push the index to a new peak level before the national elections.

The management of Hub-Power, which has already paid an interim at the rate of 70 per cent a couple of months back could give pleasant surprise to its shareholders next month when its board meets.

The market is expected to remain in a buoyant mood until the national elections in October as dividend-driven speculative support and bargain-hunting will not allow investors to watch the price flare-up sitting on the sidelines.

The KSE 100-share index recovered 12.58 points at 1,855.84 as compared to last weekend’s 1,843.24 as leading base shares showed smart gains under the lead of PSO and Hub-Power. It one stage it was quoted as higher as 1,865.

“The market may not have ruled out the possibility of a negative impact of last week’s SECP reform agenda and fears of a tussle, immediate bullish factors, including rumours of higher earnings forced brokers to have some rethinking on the official overtures,” says a leading stock analyst.

The optimism on the amicable settlement of the new SECP demands seems to have generated by the last week’s meeting between the chief of apex regulatory body and the KSE delegation led by its chairman. Reports of positive developments in Monday’s meeting between the two further aided the sentiment.

Plus signs dominated the list, major gainers being Bannu Woollen, Lakson Tobacco, PSO, Clariant Pakistan, Bata Pakistan, Lever Brothers and Treet Corporation, up Rs2.20 to Rs7.10, largest rise of Rs15 being in Wyeth Pakistan, which resumed its upward drive after last week’s recessionary cycle.

Losers were led by Orix Leasing, Atlas Honda, Abbott Lab, Security Papers and Nestle MilkPak, off Rs1.50 to Rs2.20.

Trading volume soared to 162m shares from the previous 96m shares as gainers maintained a strong lead over the losers at 166 to 89, with 57 shares holding on to the last levels.

Hub-Power topped the list of most actives, on heavy short-covering ahead of its board meetings next month and predictions of a higher final dividend, up 30 paisa at Rs26.55 on 61m shares, followed by PSO, up by Rs3.20 at Rs154.45 on 28m shares, PTCL, firm by 10 paisa at Rs18.55 on 14m shares, National Bank, higher by one rupee at Rs23.40 on 13m shares and Sui Northern Gas Company, easy five paisa at Rs14.95 on 9m shares.

Other actives were led by Engro Chemical, up Rs1.15 on 8m shares, ICI Pakistan, higher by 20 paisa on 5m shares, D.G. Khan Cement, steady 15 paisa on 4m shares, MCB, up 25 paisa on 3m shares and Fauji Fertiliser, higher 50 paisa also on 3m shares.

CLEARED LIST: PSO came in for renewed speculative buying followed by rumours of a bonus shares and rose by Rs3.55 at Rs154.80 on 6m shares followed by PTCL, steady five paisa at Rs18.60 on 3m shares.