KARACHI, Aug 8: Stocks on Thursday finished with an extended gain as follow-up support figured prominently on all the counters at the current lower levels, sending signals that bulls are now in full control of the market.
The market sentiment was also influenced favourably by another good interim dividend of 55 per cent by Dawood Hercules, one of the leading urea producers just at the heels of 30 per cent interims by Janana De Malucho Textiles and Bannu Woollen.
As expected, the KSE 100-share index breached through the psychological barrier of 1,800 points aided by heavy buying in PTCL and some other leading base shares, finishing with a net gain of 8.27 points at 1,801.47.
But opinions over its future direction are divided as it has faltered half way more than once during the last couple of months as bears don’t want to see it beyond the coveted level. Incidentally, its behaviour is typically range-bound as it has been fluctuating between the index level of 1,770 and 1,810 on the lower and the higher sides.
Much has changed since then. The index now has, more than one reasons, to look beyond the 1,800 point level and explore new highs on the strength of coming corporate announcements as indicated by the interim payouts by some mega companies including in the textile sector.
“The ICI Pakistan’s interim profit of Rs.260m for the half year after some bad years, indicates the corporate mood in the coming months and their likely positive impact on the market,” analysts said.
Although its management did not declare any interim dividend, investors welcomed the change in the working results after its delinking from the Pak PTA, its subsidiary, which has strained its financial results over the years. The second half could be much better, and, expecting a payout, investors pushed its share to Rs.38.60, up 95 paisa from the last close.
“Investors are now eying the results of Hub-Power due next month,” one broker said adding “rumours of 40 per cent final dividend in addition to 70 per cent interim already paid could give the needed push to the market.”
Leading stock analysts predict that the lean period may now be over as the current attractive lower of all the blue chips as well as second-liners ensure handsome capital gains even on short-term basis.
The stock trading in the coming weeks is expected to be dominated by the corporate announcements but there could be a pre-election brief lull if political polarisation further intensified, they added.
Plus signs again dominated the list, major gainers being Ghani Glass, Lever Brothers, Anwar Textiles and Wyeth Pakistan, which rose by Rs.2.50 to 10.
They were followed by Arif Habib Securities, Adamjee Insurance, Kohinoor Raiwind, Pak Synthetics, Hilal Flour Mills, Elite Publishers, Fecto Sugar, International Industries and some others, rising by Rs.1.20 to 1.90.
Losses were fractional barring EFU Life, New Jubilee Insurance, Shafiq Textiles and Attock Refinery, off one rupee to 2, the biggest decline of Rs.8 being in Nestle MilkPak.
Trading volume showed a modest rise at 74m shares as gainers maintained a strong lead over the losers at 170 to 70, with 68 shares holding on to the last levels.
The most active list was topped by PTCL, up 25 paisa at Rs.18.10 on 19m shares followed by Hub-Power, unchanged at Rs.24.75 on 15m shares, ICI Pakistan, higher 95 paisa at Rs.36.60 on 9m shares, PSO, firm by 25 at Rs.140.50 on 8m shares and Adamjee Insurance, higher by Rs.1.20 at Rs.40 on 3m shares.
Other actives were led by Engro Chemical, steady by 10 paisa on 2.794m shares, National Bank, up 20 paisa on 2.356m shares, Sui Northern, firm by five paisa on 2.188m shares, MCB, higher 20 paisa on 1.699m shares and World Call, lower five paisa on 1.077m shares.
CLEARED LIST: Speculative issues on the forward counter came in for renewed support and ended further higher under the lead of ICI Pakistan, up Rs.1.10 at Rs.38.70 on 1.789m shares followed by PSO, up five paisa at Rs.140.80 on 2.367m shares.
Hub-Power was among the most actives higher by 10 paisa at Rs.24.90 on 5.245m shares followed by PTCL, up 20 paisa at Rs.18.10 on 3.293m shares.
DEFAULTER COMPANIES: Shares of 11 companies came in for trading under the lead of Allied Motors, up 20 paisa at Rs.11.40 on 16,500 shares followed by Kausar Paints, steady by five paisa at Rs.1.35 on 1,500 shares and Crescent Board, lower 10 paisa at Rs.3.40 on 1,000 shares.
INTERIM DIVIDEND: Dawood Hercules, 55 per cent for the year ended June 30, 2002.
BOARD MEETINGS: Kohinoor Raiwind, Kohinoor Gujar Khan Mills and Kohinoor Textiles on Aug 13, to approve the merger of the first two with the latter, Siemens Pakistan on Aug 16, Askari Commercial Bank on Aug 18, First International Investment Bank on Aug 20.