Index maintains recovery drive

The recomposed KSE 30-share index made a firm debut around the previous level as deleting of eight shares and adding the same number to the list did not make any difference in terms of weightage. It also ended with a gain of 59.68 points at 17,295.97.

Analyst said some well-informed brokers may have found the cue through their reliable political sources the post-election set up leading to smooth transition.

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But some others say it was the strength of corporate earnings and higher dividend and bonus shares, which are keeping bulls on the war path and for good reasons too.

"The investors may have ignored the some of the negative political developments atleast for the near-term apparently carried away by the flurry of higher payouts, the post-election trading will show the real worth of their current buying euphoria," said a leading analyst.

Earnings of some of the leading banks, notably United Bank and Habib Bank as compared to previous year, but their income sharing with their shareholders is in line with the market expectations. ICI Pakistan also maintained its growth rate after posting fresh gains in almost all the sectors.

A cash dividend of 40 per cent plus bonus shares of 10 per cent by the Habib Bank, for instance, during its maiden listing year is pretty encouraging and so was final cash of 150 per cent by Al Ghazi Tractors (interim 200 per cent already paid). MCB has came out with a final dividend of 50 per cent, an interim of 75 per cent already paid on posttax profit of Rs15.27 billion.

Trading volume fell to 292 million shares from the previous 339 million shares as losers held a modest lead over the gainers at 166 to 138, with 45 shares holding on to the last levels.