KARACHI, April 28: Trading on the stock market on Monday resumed on a higher note on active short-covering in some of the pivotals ahead of board meetings of some leading companies and expectations of higher interim dividend. The KSE 100-share index posted a fresh gain of 13.39 points at 2,872.
An interim dividend of 15 per cent and 30 per cent by the managements of Muslim Commercial Bank and Fauji Fertilizer was well received but investors eagerly awaited a word from the PTCL about its interim profit till the closing bell and the consequent selling by the weakholders followed reports of a modest decline in the quarterly revenue.
However, owing to late selling in some of the trend-setters, most of the current favourites ended fractionally reacted under the lead of Hub-Power, PTCL and Sui Northern Gas.
After initial rise to around 2,890 points, the KSE 100-share index finally finished with a modest rise of 13.39 points at 2,872.70 as compared to 2,859.31 at the last weekend because of late selling in the leading base shares.
“Indications are that it could again breach through the barrier of 2,900 points during the last couple of sessions on the strength of corporate announcements due from some other leading companies but what after that is not clear,” analysts said.
They said as the board meetings of the leading companies are drying up progressively, the market is expected to take an overview of the other positive developments on the political front. A 30 per cent interim dividend by Fauji Fertilizer has a positive impact on the mid-session trading.
“Much will depend on the settlement of the LFO issue,” they said. “If the standoff continues the market could fall from the current levels.”
The fact that financial traders are not that active as they had been during the last about three months their absence could take its toll both in terms of daily volumes and fresh buying.
The early run-up was attributed to market talk of good interim dividend from the PTCL and Fauji Fertilizer and later selling was attributed to profit-taking at the profit-selling by the bargain-hunters apparently in the absence of any announcement from the former’s board meeting.
“A 30 per cent interim cash dividend by the management of Fauji Fertilizer was said to be in line with the market expectations,” says a floor broker adding “some of the investors were expecting payout of 40 per cent as did Dawood Hercules.”
Leading gainers were led by Unilever Pakistan and Wyeth Pakistan on reports of higher sales, which rose by Rs44 and Rs58.85 owing to shortage of the floating stock followed by Lakson Tobacco, Lawrencepur Woollen, Atlas Battery, Atlas Honda, Honda Atlas, Siemens Pakistan, Abbott Lab, Dawood Hercules, Pakistan Gum Chemicals, Packages, Security Papers, Highnoon Lab, up Rs3 to Rs5.
Losers included Din Textiles, Bhanero Textiles, Noon Pakistan, Pakistan Refinery, PSO, Shell Pakistan and Arif Habib Securities, off Rs1.40 to Rs13.75.
Traded volume fell to 120m shares from the previous 157m shares but gainers maintained a fair lead over the losers at 200 to 114, with 45 shares holding on to the last levels.
The most active being PTCL (A) topped the list of actives, lower five paisa at Rs24.35 on 15m shares followed by Hub-Power, easy 15 paisa at Rs34.20 on 14m shares, D.G. Khan Cement, higher 55 paisa at Rs14.55 on 13m shares, MCB, up one rupee at Rs33.35 on 10m shares and Sui Northern Gas, lower 15 paisa at Rs26.30 on 9m shares.
Other actives were led by PSO, off Rs2.55 on 6m shares, LTV Modaraba, up 45 paisa on 5m shares, PIAC, higher 20 paisa on 5m shares, FFC-Jordan Fertilizer, up 25 paisa also on 5m shares and Pakistan Oilfields, up Rs2.10 on 4m shares.
FORWARD COUNTER: Barring active selling in PSO, which ended lower by Rs3.40 at 203.40 on 4m shares, other speculative issues managed to finish higher under the lead of MCB, which up 80 paisa followed by reports of 15 per cent interim dividend at Rs33.50 on 2m shares.
The notable feature was that the matured April settlements were rung off the board and the May contracts assumed the role of ruling deliveries.
Hub-Power was traded at the last level of 34.35 on 5m shares, PTCL fell by 11 paisa at Rs24.40 on 3m shares but Sui Northern managed to finish fractionally higher by 10 paisa at Rs26.50 on 3m shares.
DEFAULTER COMPANIES: Active trading was witnessed on this counter as shares of 20 companies came in for active short-covering under the lead of Suzuki Motorcycles, up 60 paisa at Rs14.10 on 0.533m shares. Higher interim earnings was said to be chief reason behind its current run-up.
Schon Modaraba followed it, up 20 paisa at Rs0.70 on 23,500 shares and Automotive Battery, unchanged at Rs7.50 on 4,000 shares.
DIVIDEND: Fauji Fertilizer cash interim 30 per cent, Dilon Industries interim 40 per cent, Pakistan Premier Fund, right shares at the rate of 50 per cent, Muslim Commercial Bank (MCB), interim 15 per cent and Crescent Steel interim 10 per cent.