LSE depicts erratic movement

Lahore share market showed erratic movement on Friday, showing positive signs with interest in selective banking stocks while in the last minutes profit-taking emerged, forcing the index to shed a sizeable part of early gains.
The LSE-25 finished at 4631.07 points from 4615.69 level of Thursday, depicting a marginal gain of 15.38 points. There was hardly any movement in turnover, which closed at 23.090 million shares versus previous day's 22.102 million shares.
According to analysts, the market opened with a positive turn on Friday and moved up on the back of buying in select bank, cement and some other scrips, resisting weekend concept pressure. At one stage, it was up 70-75 points, but in the last minutes pressure emerged reportedly due to a rumour regarding issuance of a notice by Securities and Exchange Commission of Pakistan (SECP) directing the brokers for separating their accounts from their clients.
This caused pressure in the market, leading the LSE index to end with only a marginal gain, they added. Select stocks in banking sector, particularly Union Bank and Allied Bank, made handsome gains while Pakistan Oilfields topped the losers.
Ahmed Nabeel, head of operations of Invest and Finance Securities Ltd, said that the market, especially in initial hours, presented a positive picture with the index gaining handsomely, despite a number of negative developments. But in the last minutes, a rumour triggered pressure. The rumour was that SECP had sent a notice to brokers asking them to keep their accounts separate from the brokers.
He said that Sui Norhtern, Sui Southern, PTCL, D G Khan Cement, Lucky Cement and PPL were spot. These scrips normally collectively contribute 30 to 35 percent of total volume. Therefore, because of their being 'spot' overall volume squeezed.
He said there were also some positive developments including the news regarding opposition of China and Russia for tough sanctions on North Korea and recommencement of exploration activities by OGDC in Balochistan.
Moreover, the news that Britain's Barclays Bank was hiring Pakistani bankers was also a positive development for the banking sector. But increase in trade deficit was a negative sign. "As far as future outlook of the market is concerned I am not much hopeful about it," he said.
"Currently, the upsurge of the market depends on foreign buying interest which is limited to certain banking stocks while the local investor is diverting his stakes to Gwadar. Therefore, one should not be much optimistic about the future of the market," he added. In all, 104 scrips changed hands, of which 29 surged, 20 retreated, and 55 stayed put.
Leading gainers were Union Bank which gained Rs 4.75, Bank of Punjab Rs 3.40, Allied Bank Rs 3.15, Gharibwal Cement Rs 1.90 and MCB Bank Rs 1.50. In the minus zone, Pakistan Oilfields lost Rs 3.00, Prime Commercial Bank Rs 2.95, Honda Atlas Cars Rs 2.45, Engro Chemical Rs 1.50 and PSO Rs 1.40. Bank Alfalah led the market with volume of 5.013 million shares, followed by Bank of Punjab with 4.435 million shares.