KARACHI, Aug 21: Stocks on Wednesday maintained an uppish leaning followed by active follow-up support but late profit-selling allowed some of the pivotals to finish with clipped gains.
The market’s buoyant outlook was more pronounced on the forward counter where the volume figure swelled to a record 18m shares amid heavy covering purchases in Hub-Power, PSO and PTCL.
Unlike the previous session, however, Hub-Power stole the day’s limelight on strong dividend-related support, pushing the PSO into the secondary position on selling ahead of its board meeting.
After rising by 16 points, the KSE 100-share index finally ended with a fresh modest gain of 5.71 points at 1,873.00 amid brisk trading.
Although the Hub-Power board meeting is still far away in mid-September, PSO whose board meets on Thursday (Aug 22), remained centre of activity for the third session in a row followed by rumours of a good final plus bonus shares. It has risen by Rs20 during the current bull-run and is trading around Rs158 despite late session selling.
The PSO management may or may not declare bonus shares as is being strongly speculated by the brokerage houses, it could announce above market final dividend on the strength of an expected sharp increase in sales and earnings for the financial year ended June 30, 2002.
Hub-Power, which has already paid an interim dividend of 40 per cent for the same period is also expected to give pleasant surprise to its share-holders in its mid-September board meeting, although the final will be subject to the approval of its donors.
“Despite opposing positions taken by the SECP and the stock exchanges high-ups over the recently announced reform agenda, seeking de-mutualization of the bourse, there were no signs market manoeuvring on the part of some big ones,” says a leading stock analysts.
Investors fears that rigid positions taken by the contenders and the consequent row may take their toll in the form of low volumes and panic selling were allayed by the hectic activity and dividend-driven robust rally.
Prominent gainers were led by Engro Chemical, Honda Atlas Cars after a good dividend of 45 per cent, Lever Brothers, Treet Corporation and Wyeth Pakistan, which posted gains ranging from Rs2 to Rs20. Javed Omer, Husein Sugar, Atlas Honda, Engro Chemical, ICI Pakistan and Glaxo-Wellcome also rose by one rupee to Rs2.
Losers were led by Shafiq Textiles, Pakistan Tobacco, Packages, Berger Paints, Shell Pakistan on post-dividend selling, SK&F, Siemens Pakistan and Lakson Tobacco, off Rs1.35 to Rs2.
Trading volume rose to 161m shares from the previous 117m shares as gainers held a strong lead over the losers at 135 to 103, with 65 shares holding on to the last levels. Hub-Power led the list of actives, up 20 paisa at Rs26.90 on 43m shares followed by PTCL, higher also by the same amount at Rs18.75 on 25m shares, PSO, lower 65 paisa at Rs157.75 on 24m shares, Engro Chemical, up Rs2 at Rs64.30 on 14m shares and ICI Pakistan, higher by Rs1.10 at Rs40.70 on 13m shares.
FFC-Jordan Fertiliser, led the other actives, easy 10 paisa on 9m shares, MCB, up 25 paisa on 7m shares, National Bank, unchanged on 4m shares, Sui Northern Gas, firm by 10 paisa also on 4m shares and Adamjee Insurance, off 35 paisa on 3m shares.
FORWARD COUNTER: Active trading was witnessed this counter as all the leading shares came in for active speculative support. ICI Pakistan and Engro Chemical were leading among the gainers, up by Rs1.15 and 1.60 at Rs40.90 and 64.10 on 1.268m and 1.260m shares, respectively.
Hub-Power was the top scorer, up 15 paisa at Rs27 on 9m shares followed by PSO, off 40 paisa at Rs158.10 on 7m shares and PTCL, up 15 paisa at Rs18.80 on 6.448m shares.
DEFAULTER COMPANIES: Suzuki Motorcycles came in for renewed support and was quoted further higher by 20 paisa at Rs4.50 on 21,500 shares followed by Allied Motors, easy 10 paisa at Rs11 on 10,500 shares and Automotive Battery, unchanged at Rs4.75 on 2,000 shares.