KARACHI, Sept 27: Stocks on Friday maintained their uppish leaning as investors continued to build up long positions on the counters where dividend announcements are due and the lower levels, which ensure handsome capital gains.
After touching the day’s peak level at 2,025 at one stage, the KSE 100-share index managed to finish with an extended gain indicating that it could resume its upturn when the trading starts on Monday.
The final close of both the sessions was at 2,019.04 as compared to previous level of 2,013.85, up 5.19 points, reflecting the strength of PTCL and PSO.
The higher closing reflects that the new system has worked well.
After holding a couple of mock trading sessions during the last about a month the KSE on Friday held two — morning and afternoon sessions — to test the accuracy of the new system, which it wants to put in operation in due course.
It started trading in the new system on trial basis after the Juma prayers for about two hours and till the close at 5 p.m. the activity remained insipid. The brokers will take sometime to fathom the technicalities of the most modern system and after that it will replace the current one.
Locally developed, the new system, according to KSE sources was most transparent. The software put into operation has the capacity to take in daily turnover of over 700m shares as compared to the existing one’s 300 to 500m, and it will cater to the needs of future expansion in the daily volumes.
Floor brokers said firm closing at the weekend session generally paves the way for a sustained run-up during the next week and indications are that blue chips could rise further on the strength of fresh buying triggered by higher dividend news.
“Investors are not inclined to sit on the sidelines as an attractive bait of sell-off of the leading state units has reinforced their perception about a sustained bull-run in the coming sessions,” they added.
Bulk of the buying interest remained confined to Hub-Power, PTCL, PSO, MCB, National Bank, and some of the leading cement shares, including D.G. Khan and Lucky Cement, which have announced modest dividend.
Wyeth Pakistan led the list of leading gainers, up Rs42 followed by Ferozsons Lab, Treet Corporation, Shell Pakistan, Island Textiles and General Tyre, which posted gains ranging from Rs3.70 to Rs7.50. Bata Pakistan and Noon Pakistan also showed good gain. Bulk of the support was inspired by higher dividend.
Losers were again led by Grays of Cambridge, off Rs15, followed by Millat Tractors, HinoPak Motors, Siemens Pakistan, Clariant Pakistan, and Ghani Glass, off Rs1.45 to Rs3.75.
Trading volume fell to 114m shares from the previous 153m shares but gainers held a fair lead over the losers at 160 to 107, with 64 shares holding on to the last levels.
Hub-Power led the list of actives, easy 10 paisa at Rs24.05 on 21m shares followed by PTCL, unchanged at Rs20.15 on 15m shares, PSO, up 40 paisa at Rs196.25 on 11m shares, Adamjee Insurance, higher by 95 paisa at Rs44.25 on 9m shares and Engro Chemical, higher 55 paisa at Rs63.25 also on 9m shares, D.G. Khan Cement, lower five paisa at Rs12.45 on 7m shares and ICI Pakistan, up 45 pasia at Rs41 also on 7m shares.
FORWARD COUNTER: Active trading was again witnessed in hub-Power, which rose by three and six paisa for both the settlements on combined turnover of 14m shares followed by PTCL, lower 6 pasia for the ruling contract at Rs20.06 on 5.699m shares and higher by three paisa for the distant at Rs20.30 on 3.657m shares.
PSO rose by 45 and 10 paisa for both the contracts at Rs196 and Rs159 on 2.452m and 1.440m shares, respectively. Other actives were modestly traded, mostly on the higher side.
DEFAULTER COMPANIES: Custodian Modaraba came in for active selling and fell by 45 paisa at Rs4.05 on 17,000 shares followed by Allied Motors, easy five paisa at Rs9.50 on 12,500 shares and Crescent Board, unchanged at Rs2.80 on 3,500 shares.
DIVIDEND: Universal Leather cash 60 per cent; Noon Pakistan 50 per cent; Pakistan Refinery cash 37.5 per cent, interim 25 per cent already paid; Liberty Mills 17.5 per cent; Pakistan Synthetics 20 per cent; Habib Bank Modaraba 16 per cent; UDL Modaraba five per cent; Lucky Cement 7.5 per cent; D.G. Khan Cement 10 per cent bonus shares; Pioneer Cement cash 5 per cent; and Union Bank right shares at the rate of 66.67 per cent.