Bullish trend on LSE

The share market moved erratically last week, however, overall sentiment remained bullish with interest in oil and gas, PTCL and banking shares, while the index ended the week with a positive note.
It was the third consecutive week on the Lahore Stock Exchange (LSE) that ended with a positive note, though LSE-25 index showed only a marginal increase of 24.54 points or 0.62 percent to 3997.40 from its previous closing of 3897.40 points. Overall trade turnover was significantly up, registering a net increase of 14.031 million shares or 28 percent, finishing at 64.141 million shares compared with 50.110 million shares.
According to stock analysts, the opening of week under review was very positive and there was an overwhelming interest, especially in petroleum products and banking shares, which lured investors.
According to brokers, increase in prices of petroleum products in domestic market has turned oil-related scrips attractive for buying. The other most active sector of the week was the banking sector, which remained in positive zone on the back of good corporate results.
According to stock analysts, the market was fundamentally strong, therefore, it did not allow the profit-taking forces to go beyond limits.
The market opened the week with a bullish note amid aggressive buying in oil and gas sector, banks, PTCL and Adamjee Insurance that led the LSE-25 index cross 3,900 points level, up 31.79 points or 0.81 percent, to finally finish at 3929.19 points as against its previous closing at 3897.40 points. The volume was also a bit higher as compared to the previous session, surging to 50.808 million shares from 50.110 million shares.
Powered by fresh buying, share values were mostly in positive moods with Adamjee Insurance and National Bank, which did pretty well and bagged handsome gains, showing outstanding performance. PTCL also performed well on reports of early clearance of remaining liabilities by UAE group, Etisalat, it owed to the Government of Pakistan.
Moreover, the oil sector remained active on positive news of oil discovery and possibility of grant of new licenses for exploration of oil and gas in the company.
Equities moved both ways on second day of the week under review, but finally settled in negative zone amid ascending transaction volume, on account of profit-taking and lack of interest on the part of investors. The LSE-25 index declined by 23.32 points, closing at 3905.87 against 3929.19, while shares turnover increased to 72.350 million shares as compared to 50.808 million shares traded a day earlier.
The experts were of the view that the market closure in minus column was due to technical correction, as market has already substantially gained due to good news on the front of corporate sector, particularly the PPL and Kapco. Besides, the increasing Badla charges which touched the cap limit a day earlier, also affected the market sentiments.
Mixed sentiments continued prevailing on the third day where banking, oil and cement sectors' shares closed higher, but the index finished lowers on account of selling pressure in PTCL and OGDC. The LSE-25 index moved down by 15.89 points, closing at 3889.98 against 3905.87 of Tuesday, while transaction volume marginally increased to 75.930 million shares compared with earlier day's trading turnover of 72.350 million shares.
Bulls staged a good comeback on Thursday where equities registered gains across the board amid reduced transaction volume. The LSE-25 index improved to 3935.26 points against 3889.98 of Wednesday, donating an increase of 45.28 points. However, trading turnover declined from 75.930 million shares to 64.141 million shares.
Pak Oil Field, PSO and Sui Northern from the oil and gas sector, National Bank, Bank of Punjab from the banking sector, Pioneer Cement, Maple Leaf Cement from the cement sector and companies such as Nishat Mills and Adamjee Insurance helped market sentiments to close in positive zone. However, Kapco, PPL and KESC remained under pressure.
Market people also ignored the strike call given by combined opposition, and there was no panic in the market. Investors were in buying mood that helped market maintain upward tendency during the session. There was dull activity on the weekend as profit-taking, led by oil and gas sector, continued during the whole day. The LSE-25 index moved down by 13.32 points, closing at 3921.94 against 3935.26 of Thursday, while transaction volume restricted to 50.079 million shares as compared to 64.141 million shares traded a day earlier. Except PSO, the rest of the oil sector shares, including Pakistan Oilfields, PPL and OGDC remained under pressure and closed in minus column. The banking sector, however, was active due to which more declines were averted. In continuation of the previous day, the market took a healthy start, but fell prey to pressure due to selling in heavy weights such as PTCL and OGDC.
Shares values depicted high volatility during the entire week under review. However, the index managed a bullish closing though marginally, particularly because of banking sector on the basis of strong fundamentals. The market fundamentals are strong, which will keep the market in positive zone in coming days. However, increase in rate of CFS has disturbed investors, while carry over charges, are on their cap limits which could force people to squeeze positions.
Stock experts said that increase in profitability reports of the financial sector may keep the stocks in positive zone during the next week starting from September 12.