KARACHI, Sept 30: Stocks on Monday resumed trading on a higher note on strong anticipatory buying ahead of PTCL board meeting but post-dividend profit-selling in it allowed the market to finish with clipped gains. The KSE 100-share index fell fractionally by 0.29 points at 2,018.75.
A cash dividend at the rate of 27.5 per cent on after tax of Rs.20bn and annual revenue of about Rs.67bn (previous Rs.62bn) for the year ended June 30, by Pakistan Telecommunications (PTCL) was well-received in the market as was reflected by initial buying in most of the blue chips but late selling in it and Hub-Power slowed down the run-up.
“The PTCL payout is in line with the investor expectations and should have boosted the market to new highs in normal conditions but it came in the backdrop of fresh US bombing on some Iraq airports and renewed tension on the Indo-Pak borders,” analysts said.
Annual profit projections and sales were also according to analysts predictions, although some of them were predicting a higher dividend at the rate of 35 per cent. Leading energy shares also rose sharply on active support ahead to revision of fortnightly petroleum prices.
There was a galore of dividend announcements some of them being on the higher side, which evoked a good bit of buying interest, notably on those counters to which they belonged but late selling caused by worries over the developing border situation worked against the sentiment.
War with India in the wake of tension created by the India temple killings may not be around, but the renewed war-like activity on the borders certainly worries most of the leading investors, they added.
The KSE 100-share index early jumped up to day’s peak level of 2,035.59 points on strong early anticipatory buying in PTCL but toward the close retailers moved in pushing it down to close around 2,018.75, reflecting that it is inclined to stay above the barrier at least until the national elections on Oct 10.
Above market dividend announcements over the last couple of weeks has altogether changed the investor perceptions about the future market outlook and if goes well be the post-election political scenario and calm on the borders with India, the index could scale fresh highs, brokers predict.
There could be a brief pre-election interruption in the current market upward drive but most analysts rule out the possibility of any big shake out owing to positive corporate scenario.
Plus signs dominated the list under the lead of Central Insurance, Sapphire fibre, National Refinery, Pakistan Oilfields, Shell Pakistan, General Tyre, Glaxo-Wellcome, Wyeth Pakistan, Reckitt and Benckiser, Mitchell’s Fruits, Noon Pakistan and Treet Corporation, which posted gains ranging from Rs.2.20 to 6.80.
Losers were led by 9th ICP, Abbott Lab, Ferozsons Lab, Noon Sugar and Nestle MilkPak, off one rupee to Rs.6, the biggest fall of Rs.14.25 again being in Grays of Cambridge.
Trading volume rose to 150m shares from the previous 114m shares as the advancing shares maintained a comfortable lead over the losers at 148 to 132,55 holding on to the last levels.
PTCL topped the list of most actives but ended lower by 15 paisa on post-dividend selling at Rs.20 on 49m shares followed by Hub-Power, easy 10 paisa at Rs.23.95 on 29m shares, PSO, up Rs.1.05 at Rs.197.30 on 25m shares, Engro Chemical, higher 30 paisa at Rs.63.10 on 4m shares and Adamjee Insurance, lower 20 paisa at Rs.24.05 also on 4m shares.
Other actives were led by Sui Northern Gas, steady by five paisa on 3m shares, ICI Pakistan, easy 10 paisa on 2.603m shares, Nishat Mills, firm 10 paisa on 2.572m shares, Southern Electric, higher by 45 paisa on 2.439m shares and National Refinery, sharply higher by Rs.2.65 on 2.433m shares.
FORWARD COUNTER: PTCL came in for active post-dividend selling and ended lower by 10 paisa at Rs.20.20 on 7m shares followed by Hub-Power, easy 21 paisa at Rs.24.10 on 5m shares and PSO, higher by Rs.1.60 at Rs.160.60 on 5m shares. The notable feature was that matured September settlements were rung off the board and October contracts assumed the role of ruling contracts.
DEFAULTER COMPANIES: Active trading was witnessed on this counter where Metropolitan Steel came in for active short-covering and rose by 50 paisa at Rs.3 on 32,000 shares followed by Custodian Modaraba, easy 10 paisa at Rs.3.15 on 17,000 shares and Quice Foods, steady five paisa at Rs.1.25 on 8,00 shares.
DIVIDEND: Pakistan Telecommunications, cash 27.5 per cent,Sui Southern Gas 17.5 per cent, Southern Electric Power 15 per cent, Essa Cement five per cent, KASB & CO 10 per cent cash and 15 per cent bonus shares, Fidelity Leasing Modaraba 10 per cent, United Distributors 10 per cent, Ismail Industries 17.5 per cent, Al-Zamin Leasing 2.5 per cent, Leather-up 7.5 per cent,World Call, Unicap Modaraba, Dewan Farooq Motors, all nil.