During the week KSE-100 improved from 1194 from last week's close to 1267 — gain of 73 points. Average daily turnover and US$ value increased by 17 and 24 per cent respectively over the last week. This indicates revival of confidence of investors in the market.

Analysts attribute this to the US assurance in resolving external debt issue and the European Union decision to lower duties on some Pakistani products and a 15 per cent increase in quota ceilings. A similar announcement is also expected from the US.

A number of companies have already announced financial results and more are expected till December end. Analysts forecast for incredibly attractive dividend yield. Therefore, sustained rallies are expected in the days to come.

Analysts have repeatedly suggested that investors should not ignore pure dividend play universe comprising of some leading scrips. They also suggest that investors should also look towards companies engaged in manufacturing and marketing of consumer goods. Sales of these companies are expected to go up due to higher demand fuelled by hike in per capita income.

Lenders of the Company have finally approved 17 per cent interim dividend announced in May this year. WAPDA and HUBCO have also reached an agreement to withdraw all criminal and civil cases against each other. The signing of the amended settlement agreement between the two parties has paved the way for the approval of interim dividend by the lenders. According to a report by KASB shareholders can expect 16 per cent final dividend for the year ending June 30, 2001 and around 40 per cent for the year ending June 30, 2002. At the current market price, such payouts translate into attractive dividend yield.

While the investors are waiting anxiously for the Board meeting, many analysts term this only a ritual. However, the official announcement about the Board meeting and its agenda has curbed rumours about forthcoming dividend announcement. Scrip is still selling at a discount and with the prospects for at least 20 per cent dividend, buying euphoria is still not evident. Privatization of PTCL has been delayed. It has less relevance with the current situation in the region. The decision has been prompted because of much lower interest of investors in companies involved in telecommunication business.

Financial results for the year ending June 30, 2001 has been announced. The Board of Directors have approved 60 per cent final dividend making a total dividend of 100 per cent and maintained the level of previous year. Though, there was an increase in sales, cost of products sold as well as operating expenses went up. Therefore, profit after tax was marginally higher as compared to previous year. Management of the company is making efforts to arrest decline in its market share and has been successful to a large extent.

The Board of Directors have approved 30 per cent dividend for the year ending June 30, 2001. The Company has posted Rs 35.7 million profit before tax for the year under review. For the previous year profit was Rs 25.6 million. Therefore, it may be said that company has registered an overall improvement. This is evident from increase in sales and gross margin. Though, the details are not given in the announcement, it is expected that new products and overseas sales have been the main reason for increase in sales. It also appears that during year 2002 net sales of the Company may cross billion rupee mark.

The Company has announced 35 per cent dividend for the year ending June 30, 2001. The payout for last year was 30 per cent. Sales increased from Rs 1.5 billion for year 2000 to Rs 1.95 billion for the year under review. Profit after tax also jumped from Rs 91 million to Rs 141.3 million during this period. Out of profit after tax of Rs 95.3 million, the Board approved disbursement of Rs 42.8 million and chose to transfer Rs 50 million to general reserve.

The Company has managed to improve its dividend payout from 12.5 per cent for the previous year to 15 per cent for the year ending June 30, 2001. Operating profit improved from Rs 9.4 million for the previous year to slightly more than Rs 20 million for the year 2001. Profit after tax improved from Rs 6.7 million to Rs 10.9 million. Out of this the amount for proposed dividend come to Rs 5.85 million. The end of the year accumulated losses carried forward were Rs 13.3 million. Therefore, the shareholders may not see any improvement in dividend payout.