Bullish sentiments dominated on the Lahore Stock Exchange (LSE) on Wednesday and the equities registered gains across the board amid marginally increased trading turnover on account of fresh entries made by the investors in anticipation of new financing margin system, which would help boost stocks trading.
The lSE-25 index significantly jumped to 2067.65 against 1993.55 of Tuesday, denoting an increase of 74.10 points, while transaction volume increased to 9.293 million shares, as compared to previous volume of 7.586 million shares. The market opened on a healthy sign and stayed in green zone throughout the day. The market kept on rising due to buying support in oil, cement and banking sectors.
As a result the banking and oil sectors shares recorded considerable improvement in their values. According to the market experts, the investors are anticipating implementation of new financing margin system under which the financiers would be allowed settlement of defaulters out of the National Clearing Company, said Abbasi and Company's Chief Operating Officer, Syed Muhammad Ishaq, while talking to market trend.
The new system is also expected to provide the financiers the facility of self-risk assessment while there would be no financing limit. The new system could be proved an effective tool to bring the market out of the crisis, he added. He said the new model, which is being reviewed and considered at different levels would help improve trading activity besides restoring the investors' confidence.
The market is likely to present bullish rallies in coming days mainly on account of possibility of implementation of new financing margin model. The advancing stocks were far ahead of declining ones as out of a total of 110 active issues, 53 companies posted gains, 8 landed in red zone while values of 49 companies were closed at their previous levels.
Among gainers, National Refinery was improved by Rs 9.15, Pak Oil Fields was appreciated by Rs 6.86, MCB Bank gained Rs 6.62, while PPL and PSO were up by Rs 6.28 and Rs 5.20, respectively. On the contrary, Standard Chartered Bank lost 21 paisa, Sui Southern Gas was declined by 19 paisa, while Dewan Cement was down by 15 paisa. D.G. Khan Cement with trading of 1.282 million shares topped the volume leaders followed by Arif Habib Securities with 1.025 million shares.
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