KARACHI, Aug 7: Trading on the stock market on Monday resumed on a higher note as investors were not inclined to miss the rising market aided by higher dividend announcements from the oil giants, notably PSO and Shell Pakistan.
The KSE 100-share index crossed the barrier of 10,800 points and was last quoted at 10,846.74, up by 74.16 points as leading base shares finished with extended gains under the lead of OGDC, PTCL and Pakistan Oilfields.
A higher cash dividend of 220 per cent plus bonus shares of 25 per cent by Shell Pakistan boosted trading on the oil sector and analysts predict others may follow the suit just at the heels of PSO.
Together with the interim of 80 per cent already paid, the total payout for the last year ended June 30, 2006 amounted to 300 per cent cash and 25 per cent bonus. EPS stood at Rs70.90 for a 10-rupee share.
Its share value rose by Rs25 adding to the last Friday’s rise of Rs29.65 and was quoted around Rs650 signalling that it could rise further on the strength of higher payout.
However, owing to shortage of its floating stock, volume figure did not match the rise in its value.
Just at the heals of PSO, whose management last week announced a cash dividend of 340 per cent, Shell Pakistan’s final payout has reinforced the investor perceptions that the oil sector could spring pleasant surprises in the weeks to come.
OGDC board is meeting on Aug 15 and on the strength of float of GDR and earnings followed by others leading oil shares and it could keep investors in an optimistic mood in the coming weeks.
Analysts said technical corrections here and there notwithstanding. The future outlook appears to be bullish at least until the current buying euphoria is sustained by the corporate announcements.But some others said developing situation on the political front and the end of season of dividend announcement could pull the market back to around the index level of 10,000 points.
PTCL continue to drive strength from the reports that its share would be listed on the Dubai bourse and during the last couple of sessions it had risen by Rs8 on large volumes. It was inching up to its pre-reaction level of Rs60 plus. But bank shares attracted selling at the inflated levels.
Pakistan Refinery and Shell Pakistan, which rose by Rs15.35 and Rs25, led the list of gainers followed by Adamjee Insurance, National Refinery, Pak-Suzuki Motors and Indus Motors, which posted gains ranging from Rs7.15 to Rs10.95.Al-Ghazi Tractors and Siemens Pakistan were leading among the losers, off by Rs8.30 and Rs55. Other prominent losers included Javed Omer, Attock Cement, Pakistan Hotels, Abbott Lab, Pakistan Cables and HinoPak Motors, which suffered fall ranging from Rs3.90. United Bank, fell by Rs3.05 as its management did not declare any dividend for the half year.Trading volume fell to 240m shares from the previous 254m shares but gainers maintained a fair lead over the losers at 151 to 141, with 35 shares holding on to the last levels.
OGDC topped the list of actives, up by Rs2.70 at Rs146.60 on 39m shares followed by PTCL, higher by Rs1.25 at Rs47.10 on 36m shares, Telecard, steady by 55 paisa at Rs13.70 on 19m shares, National Bank, off Rs2 at Rs235.30 on 8m shares, MCB, lower 40 paisa at Rs235.30 also on 8m shares and Lucky Cement, up by Rs2.85 at Rs111.50 on 9m shares.
Other actives were led by D.G. Khan Cement, up by 40 paisa on 11m shares, Bank of Punjab, up by Rs2.05 on 15m shares and Union Bank, easy 15 paisa on 7m shares.
FORWARD COUNTER: OGDC also led the list of actives on this counter, up by Rs2.60 at Rs147.50 on 8m shares, Telecard, steady by 55 paisa at Rs13.75 on 8m shares and PTCL, Rs1.05 at Rs47.15 on 7m shares.
Other actives included Bank of Punjab, up by Rs190 at Rs87.60 on 4m shares and National Bank, off Rs1.80 at Rs239.75 on 3m shares.
DEFAULTER COS: Trading on this counter was slow in the absence of strong demand. Price changes were fractional and there were no large volumes with the exception of Crescent Standard Bank, lower 35 paisa at Rs5.15 on 0.100m shares. Others were fractionally traded.
BOARD MEETINGS: Pakistan Tobacco on Aug 11, Din Textiles on Aug 12, Meezan Islamic Fund and Meezan Balanced Fund on Aug 15, Al-Meezan Mutual Fund on Aug 16, Pakistan Refinery on Aug 22, Bata Pakistan on Aug 23 and Pakistan Gum Chemical on Aug 24.