LSE values depict firmness

With fresh buying activity in oil and gas sector, share values depicted firmness on Lahore Stock Exchange (LSE), where the index posted a marginal rise amid steady volume of transactions. The LSE-25 index registered an increment of 3.95 points to close at 2,733.72 as against 2,729.77 points of Tuesday. Overall volume amounted to 46.847 million shares as compared to 46.703 million of the previous session, showing a fractional improvement.
The market remained in the bullish zone throughout the day with oil and gas sector and fertiliser stocks registering fresh gains. However, the rest of the market remained lacklustre due to which volume was also almost flat, stock analysts said.
Giving reasons for fresh buying in fuel and energy sector, analysts said that recent discovery of oil and gas at Dhakni field in northern region has triggered further interest in fuel and energy stocks which already appears to be the most attractive sector for investment.
This field, according to reports, would produce 11-mmcfd gas and 750 barrels oil per day. Gas produced from this field will be injected into the system of Sui Northern Gas Pipeline Company Ltd (SNGPL). In this way SNGPL will be the major beneficiary of this discovery, they added. PPL, Dewan Farooq Motors and Fauji Fertiliser were the key gainers of the day while Nishat Mills and Maple Leaf Cement underwent losses.
Dr Shahid Zia, head of research at Switch Securities Ltd said that apart from fuel and energy sector, banks and fertilisers also did well following fresh buying interest.
He said that Fauji Fertiliser Bin Qasim has achieved turnaround therefore it appears to be very attractive for long-term investment. Moreover on the basis of their good results and earnings, interest has also grown in banks, especially in Bank Alfalah, National Bank and Bank of Punjab. There was encouraging news for textile sector regarding possible merger of Nishat Mills and Nishat Chunian into Umer Fabrics.
This could be a good development for textile sector and will help in its growth, he added.
About low volume, he said most of the members and brokers were in Faisalabad to attend the opening ceremony of trading floor of Lahore Stock Exchange (LSE) due to which volume remained low. He, however, pointed out that the fresh interest in fertilisers, banks and fuel and energy sector is a good omen and will have healthy impact on overall sentiment of the market.
Out of a total of 106 scrips exchanging hands on the day, 22 were up, 21 landed in negative zone while 63 stayed pegged to its previous levels. PPL improved by Rs 1.60, Dewan Farooq Motors Rs 1.20, Fauji Fertiliser Rs 0.90, PSO Rs 0.80 and Fauji Fertiliser Bin Qasim Rs 0.75. In minus column, Nishat Mills shed Rs 0.65, Maple Leaf Cement and Kohinoor Industries Rs 0.40, while PTCL and Bank of Punjab lost Rs 0.25 each.
Fauji Fertiliser Bin Qasim was the volume leader with 15.199 million shares followed by Bank of Punjab with 7.107 million shares.