A seesaw trend was witnessed in the local stock market on the last day of trading, where share values remained highly volatile with the index making a negative closing.
The LSE-25 index closed at 2516.73 points compared with previous day's 2517.61, registering a minor downward fluctuation of 0.88 points. Turnover also showed downward trend and was registered at 54.825 million shares as against 65.542 million shares on Thursday, showing a fall of 10.717 million shares.
The market took a positive start with fresh buying in selective chips and finally, after observing up and downward fluctuations, ended on a weak note. According to stock analysts, the index was up by 30 points in the first session, while in the second session, it stayed mostly in the red zone.
However, last minutes recovery helped the index close with a capped loss, they added. Fidelity Investment Bank, Kohinoor Textile and PSO topped the gainers column while Honda Atlas, Habib Bank Modarba 1st and Pioneer Cement depicted a dismal picture.
Brokers said as it was the last trading day of the weak, therefore, in the second session, people took to off-loading to secure their positions, which caused pressure.
Apparently, they added, there was no specific factor behind the pressure except that weak holder off-loaded. According to a broker, after the Saarc summit, hopes of investors are very high and they are expected to indulge in fresh buying during the next week.
According to Ahmed Nabeel, head of operations at Invest and Finance Securities Ltd, the market remained directionless, painting a seesaw picture during the entire day. After the Saarc summit, the index has improved by around 100 points with no tangible rise in share prices, which means the index is being manipulated.
It was being anticipated that the market will attract foreign buying but this did not happen, he said. However, he pointed out, there are chances that the future outlook rating of Pakistan by Moody International or other international agencies will be raised in view of the positive developments noted on the occasion of Saarc summit.
"I guess the rumours about delay in privatisation of the PSO is a prime factor, which is disturbing the market," he viewed. There are rumours that privatisation of the PSO has delayed and now the government strategy is to privatise PTCL before the PSO.
Moreover, growing interest of investors in Iraqi currency is also a disturbing factor for the capital market, he said, adding it is a serious issue and the government must check it.
"In my view, under the given situation buy on strength should by the strategy."
Out of a total of 103 scrips, 17 were up, 28 showed negative signs while 58 were unchanged to its overnight levels.
Among major gainers, Fidelity Investment Bank was up by Re 1.00, Kohinoor Textile Mills Rs 0.90, PSO and Punjab Modarba 1st Rs 0.80 each and Bossier Pakistan Rs 0.70.
In the negative zone, Honda Atlas Cars declined by Rs 1.65, Habib Bank Modarba 1st Rs 1.45, Pioneer Cement and Nishat Mills Rs 0.80 each, Pakistan Industrial Credit Rs 0.55.
Bank of Punjab and PTCL were day's volume leaders with 9.092 million and 7.345 million shares turnover, respectively.
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