Equities failed to maintain the rally on the Lahore Stock Exchange (LSE) on the second last day of the current trading week, after profit-taking surfaced in key chips, resulting in low turnover. The LSE-25 index registered a decline of 30.19 points or 0.79 percent to eventually close at 3,762.33 points as opposed to 3,792.52 points of Wednesday.
Overall volume amounted to 46.559 million shares as compared to the previous day's 52.541 million shares, registering a decline of 5.981 million shares or 11.38 percent.
The market, which depicted a mixed trend, kept moving both the sides amid lack of interest from big players as well as institutions. According to stock analysts, the market opened with its overnight bullish note and activity in selective chips, particularly fuel and energy sector, boosted sentiments placing the index in the negative column.
However, later profit taking set in that triggered pressure and then dragged the index in the negative zone, they added. Pakistan Oilfields and Adamjee Insurance closed in the positive zone, while PPL and Fauji Fertiliser were the prime losers of the days.
According to an analyst, the market has shown a healthy movement during the last two days, therefore, it was likely to take a dip on Thursday on technical grounds.
According to Dr Shahid Zia, head of research at Switch Securities Ltd., there were two reports in the market, one positive and the other negative, which did not allow the market to take a clear turn and it remained sideways and choppy. On the positive side, there were reports that the government was going to enhance the interest rate on saving schemes by 2-3 percent. "But I feel it will not have any negative impact on the market," he said, adding that it may divert capital from banks to the saving schemes but people are unlikely to withdraw money from the stock markets. There was strong perception among the people that oil companies' advisory body was expected to raise the oil prices on Thursday for the next 15 days. But its impact was minimal on the oil sector and it showed mixed performance.
Though the market was sideways, but its closing was not much bad and the KSE index on Thursday finished above its last month end closing level. "When we look at its monthly performance we find that the KSE closed at 7,496.40 points as compared to 6,857.67 points of the closing of May 31, which is a positive sign."
Similarly, this week's performance was also better than that of the previous week. He, however, said that because of slow progress on the issue of margin financing, turnover has squeezed drastically, which has also disturbed the regulator, ie, the Securities and Exchange Commission of Pakistan (SECP). Therefore, it is being anticipated that the SECP was seriously considering to extend the badla phase-out deadline, he said.
In all 84 scrips changed hands, of which 13 improved its worth, 28 landed in the negative zone, while 43 remained pegged to their previous values.
Among major gainers, Pakistan Oil Fields was up Rs.2, Adamjee Insurance Rs.1.50, Engro Chemical Rs.1.40, Kohinoor Energy Rs.1.35 and Union Bank registered a gain of Rs.1.25. In negative column, PPL shed Rs.3.40, Fauji Fertiliser Rs.1.70, ICI Pakistan Rs.1.25, while Dewan Salman Fibre and OGDC down Rs. 1.10 each.
PTCL was the volume leader with 17.332 million turnover followed by OGDC with 7.90 million shares.
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