KARACHI, Sept 24: Stocks finished the weekend session with an extended gain on active short-covering at the still lower levels aided partly by predictions of higher dividend by some of the mega issues , notably the PTCL, which was massively traded for the second session in a row.
The number of gainers reflects that it was a broad-based extended rally and covered all the sectors and reflected that the market is in for a grand technical rebound both on technical and higher payouts grounds. But some others said it appears to be PTCL-led rally as it came in for heavy buying for the second session in a row amid rumours that its payout for the fiscal ended June 30, 2004 could be much higher as compared to previous year's 35 per cent, analysts said.
"It could be around 45 per cent or slightly above," they said. "PTCL's earnings during the last year were on the higher side despite a number of relieves it has given to its wide clientele."
The PTCL board meeting is due on Sept 28 or 29, and the current speculation about the higher dividend is in line with the market perceptions and some hard information from the relevant sources.
That is perhaps why the KSE 100-share index, which has fallen below 4,900, recovered about 150 points just in two sessions, pushing it well above the crucial level at 5,080.97 thanks to massive buying in it and other leading base shares including OGDC, Hub-Power and PSO.
Its own weight age in the index is 17 per cent. The net rise over the day was 110.40 points after breaching through the barrier of 4,900. The market capital also soared by Rs28.310 billion at Rs1,441.318bn as compared to Rs1,413.008bn, the total rise during the last two sessions being Rs37bn.
Floor brokers said owing to persistent selling during the last two weeks, the market has reached a saturation point being in a highly oversold position and needed correction that came in the form of short-covering by all and sundry.
But the significant feature was the revival of institutional buying though on selected counters but it managed to rope in others, and there were very few who could resist the temptation of capital gains, they said.
"I think the worst may be over by now," an analyst predicts. "Volume figure may not attain its lost glory as the fallout of the CVT will haunt punters and general investors, and the market is out to meet its technical demand".
All leading shares, notably in the cement, banking, insurance, energy, telecom and chemical sectors came in for active short-covering and pushed the market well above the recent lows just in no time.
Leading gainers were led by Grays of Cambridge, Javed Omer, Arif Habib Securities, which rose by Rs18.85 to Rs19.20 followed by Treet Corporation, Berger Paints, which has risen by Rs50 during the post dividend sessions, Thal, Fazal Textiles, Gatron Industries and Glaxo-SKF, up by Rs6 to Rs10.90.
Prominent losers included Ferozsons Lab and Wyeth Pakistan, off by Rs11.45 and Rs21 followed by Bolan casting, Pakistan Engineering, Atlas Battery, BOC Pakistan, Clover Pakistan, off Rs3 to Rs6.25.
Trading volume further rose to 342.095m shares from the previous 228m shares as gainers maintained a strong lead over the losers at 227 to 83, with 33 shares holding on to the last levels.
Among the volume leaders, PTCL was again leading, up Rs2.10 at Rs42.30 on 105m shares followed by OGDC, higher Rs1.15 at Rs60.30 on 32m shares, DG Khan Cement, higher by Rs1.90 at Rs56.30 on 27m shares, National Bank, up Rs3.30 at Rs68.50 on 23m shares and Bank of Punjab, firm 65 paisa at Rs64.60 on 13m shares.
Other actives were led by Sui Northern Gas, up Rs1.15 on 12m shares, FAuji Fertilizer Bin Qasim, steady 55 paisa on 10m shares, Hub-Power, firm by 40 paisa also on 10m shares, Lucky Cement, up Rs1.10 on 10m shares and Pakistan Petroleum, higher 65 paisa on 9m shares.
FORWARD COUNTER: PTCL, both the settlements came in for strong support and rose by Rs2.14 and Rs2.18 at Rs42.35 and Rs42.48 on 5 and 14m shares respectively, the largest chunk of volume went to the credit of October settlement.
PPL rose by 80 paisa at Rs111.85 on 9m shares, while OGDC, posted a gain of Rs1.25 at Rs60.50 on 6m shares, Bank of Punjab was quoted higher by 75 paisa at Rs54.75 on 5m shares for the October contract.
DEFAULTER COS: Quice Foods and Lafayette Industries came in for active support and rose by 15 and 55 paisa at Rs4.90 and Rs4.55 on 2.393m and 1.023m shares respectively. All others were also traded on the higher side amid modest activity.
DIVIDEND: Buxly Paints, cash 12.5 per cent, Javedan Cement, 7.5 per cent, Kohinoor Energy, final 10 per cent, BBR Investment Modaraba, cash Rs1.40 per share certificate, and Grays Leasing, cash 15 per cent, bonus shares of 11.11 per cent, General Tyre, Pakistan Synthetics, and Shield, all nil.