Stocks drop over MCB dividend

Karachi: Pakistan's benchmark stock index fell for a third day after the nation's biggest bank by market value paid a lower-than-expected dividend.

MCB Bank Ltd reported a net income of Rs22.42 (Dh0.97) a share for 2009, little changed from the previous year, and paid a 35 per cent dividend.

Investors were expecting the bank to pay a dividend of 47 per cent, said Abdul Shakur, a research analyst at Invest Capital & Securities Ltd in Karachi. The Karachi Stock Exchange 100 Index declined 19.01, or 0.2 per cent, to 9,667.17. Habib Bank Ltd, Pakistan's second-biggest by assets, fell 0.4 per cent to Rs123.32.

"There was no positive news and the announcement by MCB hurt investors' sentiments," Abdul Shakur said.

MCB Bank fell as much as 0.8 per cent before erasing its losses to close at Rs216.55.