An enhanced final dividend at the rate of Rs2.75 per share or 27.50 per cent by the board of directors of OGDC was actively received by the investors as it was on the higher side of the market perceptions. It has already paid total interim dividend of 47.50 per cent.
The KSE 100-share index recovered a good part of the weekend loss and was quoted higher by 38.43 points at 7,972.97 as compared to 7,934.54 at the last weekend, reflecting the strength of leading base shares.
Although the market was still in an overbought position and needed correction, bulls are not inclined to loosen their grip on the prevailing price line fearing bear onslaught.
That is perhaps why widely speculated weekend sell-off could not be extended as there were more buyers than sellers at dips, notably on the low-priced counters.
“After a fair amount of trial and error, leading investors seem to have set a viable trading pattern for themselves,” says a leading stock analysts commenting on the market’s current mood “they sell long positions in the high profile shares by way of profit-taking and pick up the second-liners having potential of capital appreciation.”
Thus, they operate judiciously both ways ensuring their profit margins but without disturbing the status quo or the current price pattern. The move perhaps aims at keeping sundry investors in a positive mood sans scare.
“If this pattern backed by corporate earnings is followed, the market could build up a strong rally at each decline adding to the index though by patches,” some others holding the same view said.
MCB, Bank of Punjab followed it supported by Nishat Mills, PTCL, and OGDC, which has been under pressure for the last couple of sessions.
Among the leading cement shares, DG Khan Cement attracted profit-selling ahead of board meeting but Maple Leaf rose sharply on reports of 10 per cent bonus shares.
Leading gainers were led by Aventis, IGI Insurance, Arif Habib Securities, Millat Tractors, Pakistan Refinery and Unilever Pakistan, up by Rs10 to Rs40. Other good gainers included Indus Dyeing, Pakistan Oilfields, Dawood Hercules, and National Foods, which posted gains ranging from Rs4 to Rs5.50.
Losers were led by DG Khan Cement, Nishat Mills on post-dividend selling, Allied Bank, Jahangir Sidduiqui & Co, Bhanero Textiles, and AdamjeeInsurance, off by Rs3 to Rs6.20.
Trading volume fell to 293m shares from the previous 351m shares as sellers kept to the sidelines anticipating further rise in share values, while losers led gainers by 163 to 136, with 38 shares holding on to the last levels.
National Bank topped the list of actives, up Rs3.80 at Rs133.70 on 55m shares followed by DG Khan Cement, off Rs2.45 at Rs69.55 on 40m shares, Fauji Cement, easy 15 paisa at Rs16.05 on 26m shares, PTCL, up 40 paisa at Rs64.65 on 23m shares, OGDC, higher by Rs1.25 at Rs110.50 on 20m shares, MCB, up Rs.1.50 at Rs121.30 on 19m shares and Bank of Punjab, higher by Rs2 at Rs107.40 on 15m shares.
Other actives were led by Nishat Mills, off Rs4 on 10m shares, Sui Northern Gas up Rs3.90 on 8m shares and Maple Leaf Cement, lower 60 paisa on 8m shares.
FORWARD COUNTER: DG Khan Cement also came in for active selling at the higher levels, off Rs3.65 at Rs69.95 on 11m shares followed by National Bank, higher by Rs2.85 at Rs133.85 on 11m shares and OGDC, higher by Rs1.05 at Rs111.25 on 8m shares.
Pakistan Petroleum followed them, higher by Rs2 at Rs183.50 on 6m shares and Nishat Mills, lower Rs4.60 at Rs88.05 on 6m shares.
DEFAULTER COS: Trading on this counter remained sluggish in the absence of strong buying. Morafco Industries and Dewan Autos were an exception, which came in for stray support and rose by one rupee each at Rs14 and Rs9.70, while Crescent Board fell by one rupee at Rs17 on light volume.
DIVIDEND: OGDC, final cash 27.5 per cent, an interim of 47.5 per cent already paid, Nishat Mills, cash final 25 per cent, DG Khan Cement, cash final 15 per cent, Maple Leaf cement, bonus shares of 10 per cent, Jahangir Siddiqui & Co, cash 25 per cent, Indus Motors, 60 per cent, Karam Ceramics,15 per cent, Union Leasing, cash 10 per cent, bonus share of the same amount, Dawood Lawrence, bonus shares at the rate of 10 per cent, Al-Zamin Leasing, cash five per cent, Unicap Modaraba and Dadabhoy Cement, both nil.
BOARD MEETINGS: Escort Bank, on Sept 21, Al-Abbas Cement, Constellation Modaraba, Al-Mal Securitries, Moonlite Pakistan, Sept 22, Fatima Enterprises, Nimir Industrial Chemicals, Khushid Spinning on 24, Saudi Pak Leasing on 24 and DM Textiles on Sept 26.