Equities moved both the ways on Lahore Stock Exchange (LSE) mainly on account of lacking interest on the part of institutions, amid ascending transaction volume.
The LSE-25 index registered improvement of 27.40 points, closing at 2956.83 against 2929.43 of Monday, while trading turnover increased by 16.914 million shares to 95.653 million shares as compared to 78.738 million shares traded a day earlier. Banking and oil and gas sectors helped market recovery while cement sector remained under pressure.
The market opened on a healthy note despite the fact the investors were expecting bearish rally due to resignation of Chief Minister Sindh Ali Muhammad Mahar.
The investors were of the view that market could suffer till the elevation of new Sindh chief minister. However, it could not sustain and dragged into negative zone soon after one-hour trading.
Market remained under grip of rumours regarding resignation of Prime Minister Mir Zafarullah Khan Jamali.
Another factor that contributed to negative sentiments was auction of treasury bills. The State Bank has auctioned treasury bills amounting to 15 billion of rupees for a period of three-month and one-year.
The investors were of the view that treasury bills would register increase in yield from 2.24 percent to 3.25 percent. These perceptions restricted the investors to stay away from the buying spree while investors also remained on the sidelines, said Ahmad Nabeel of Invest and Finance Securities, while commenting on the market trend.
The cement sector remained under pressure on account of decrease in production quota from 90 percent to 70 percent, while banking, oil and gas sector performed well.
The cement sector could take U-turn within next couple of days, as production quota would start rising by five percent from Wednesday, he maintained.
Just one and half-hour before the closing, the market received results of treasury bills' auction according to which there was no increase in treasury bills margin. As a result, the investors as well as institutions came forward to build up their portfolio that helped market to end in positive zone, he added.
Advancing stocks were ahead of declining ones as out of a total of 95 active issues, 26 registered gains, 18 landed in negative zone, while 51 stayed glued to its previous levels.
National Bank recorded gain of Rs 2.30, Nishat Mills improved by Rs 2.25, ICI Pak appreciated by Rs 1.60, while Pakistan PTA moved up by Rs 1.35. Adamjee Insurance declined by Rs 1.45, Zeal Pak Cement lost Re 1.0, while Dandot Cement and Pioneer Cement were down by Rs 0.70 and Rs 0.56, respectively.
National Bank was the market leader whose 13.649 million shares changed hands followed by Sui Southern Gas with total transaction of 12.118 million shares.
Comments
Comments are closed.