KARACHI, Aug 22: Stocks on Friday showed mixed trend and finished well below the day’s highs on late weekend selling in Hub-Power despite reports of a good final dividend in its board meeting on Sept 4.
Only extreme gains were clipped on some of the blue chip counters but there was no indications that the current run-up is overdone, brokers said.
A massive activity of 176m shares in the PTCL, analysts believe, signals the advent of foreign support in it and together with pre-final dividend covering purchases in Hub-Power could give new outlook to the prevailing market conditions during the next couple of weeks.
The KSE 100-share index steadily rose above the psychological barrier of 4,400, hitting the session’s high at 4,450.00 but ended reacted around 4,418.21 as compared to previous 4,395.87, up 22.34 points. However, weekend selling in Hub-Power, PSO and some other leading base shares pushed it lower from the day’s peak level.
Its weekend rise now has almost ensured that the next week could well see it attaining its new chart point of 4,500 and what next will be determined by the local political standoff on the LFO and upcoming corporate announcements by some leading mega issues including Hub-Power and ICI Pakistan.
Most analysts, however, believe that the announcement of the date for board meeting of Hub-Power on Sept 4, will not allow bears to tilt the price balance in their favour.
With 33 per cent interim dividend already to its credit, the directors of Hub-Power are rumoured to announce final dividend at the rate of 25 per cent at their board meeting and that could well be in line with analysts’ predictions. The total payout will ensure return on investment of about 13 per cent fair enough compared with the other modes of investment.
The official announcement that the final bidding date for the sell-off of controlling shares of the Habib Bank sometime in December also evoked keen investor interest as the privatization process will be carried out through the bourses. About four per cent shares, the third tranche, of the National Bank will also be sold about the same time.
Analysts said the developing scenario on the corporate front tells it may not be that easy now to pull the market down from the current levels, which is essentially guided by its basic fundamentals rather than negative external factors.
Lower bank rates and falling yields on T-bills has made share business more attractive and heavy daily volumes reflect that surplus funds are finding their way into the share business without any fear of the market collapse, the said.
Glaxo-SKF reacted favourably to the announcement of interim bonus shares at the rate of 20 per cent and rose by Rs12.90 followed by Lakson Tobacco, Millat Tractors and Grays of Cambridge, up by Rs10 to Rs27.
Other good gainers were led by Atlas Honda, Abbott Lab, Clover Pakistan, Aventis Pharma, Al-Ghazi Tractors and Colgate Pakistan, which posted gains ranging from Rs6 to Rs8.10.
Losers were led by International Industries despite higher final dividend and bonus shares, Pakistan Resource Co, Pakistan Refinery, Packages and Bhanero Textiles, off Rs4.65 to Rs10.
Trading volume fell to 531m shares from the previous 630m shares as losers forced a comfortable lead over the gainers on late weekend selling in some of the pivotals and the last count was 197 minus signs against 163 plus ones, with 43 holding on to the last levels.
PTCL was massively traded, up by Rs1.05 at Rs38.60 on 176m shares followed by Hub-Power lower 35 paisa at Rs44 on 86m shares, Pak PTA, higher by 40 paisa at Rs14.15 on 24m shares, Lucky Cement, firm by 20 paisa at Rs23.90 on 20m shares and National Bank, up by 25 paisa at Rs40.75 on 18m shares.
Other actives were led by Dewan Salman, off 85 paisa on 17m shares, PSO, up by 45 paisa also on 17m shares, D.G.Khan Cement, easy 30 paisa on 15m shares, Sui Northern Gas, off 50 paisa on 14m shares and Fauji Cement, lower 40 paisa on 13m shares.
FORWARD COUNTER: PTCL came in for active support and rose by one rupee at Rs38.60 on 20m shares followed by Hub-Power, lower 40 paisa at Rs44.15 on 12m shares, PSO, up by 25 paisa at Rs294.25 on 7m shares, Pak PTA, firm by 20 paisa at Rs14.15 on 3m shares and FFC-Jordan Fertilizer lower 30 paisa at Rs18.05 on 2m shares.
DEFAULTER COMPANIES: Modest trading was witnessed on this counter as investors took profits at the available margins owing to weekend considerations. Standard Bank was leading among them, lower 10 paisa at Rs7.15 on 0.223m shares followed by Financial Link Modaraba, up by 45 paisa at Rs3.65 on 0.178m shares and Biafo Industries, easy 10 paisa at Rs7.25 on 0.106m shares. Others were modestly traded.
DIVIDEND: International Industries, final cash at the rate of 45 per cent, an interim of 25 per cent already paid, bonus shares of 15 per cent, Glaxo-SKF, interim bonus shares at the rate of 20 per cent and Security Leasing Corporation, cash 10 per cent for the year ended June 30, 2003.
BOARD MEETINGS: Sitara Chemicals on Aug 26, Crescent Star Insurance, Metropolitan Life Assurance, East-West Insurance and National Security Insurance on Aug 27, Muslim Insurance, Singer Pakistan and Pakistan Industrial Credit & Investment Corporation on Aug 28.