Share values recovered on Lahore Stock Exchange (LSE) as fresh buying interest, emerging in banks and cement stocks lifted the index up, ending over week-long losing streak. The LSE-25 index rose to 2774.67 points from 2753.52 of Tuesday, registering a net increase of 21.15 points.
The volume, however, was a bit low, and registered at 55.614 million shares as compared to previous day's 59.021 million shares, showing a fall of 3.406 million shares.
The market opened with a bullish note and remained in the upbeat mood in subsequent hours.
Stock analysts said the profit-taking was observed in last minutes due to which the index ended with a reduced gain, adding the sentiment remained bullish and the winning streak might continue on Thursday with focused buying activity in banking and cement shares.
On Wednesday, the market staged a smart recovery with National Bank and Lucky Cement dominating the proceedings, brokers said, adding it was technical correction that was due after over week-long bearish spell.
Dr Shahid Zia, head of research, Switch Securities Ltd, said the market was highly oversold, and a technical correction was over due, adding during the previous session, weak-holders had heavily off-loaded their positions, which released pressure and raised the chances for a technical reversal of the market. He, however, pointed out the recovery was on technical ground, and there was no rumour or negative news from any front, saying: "The reversal is logical and the trend is likely to prevail on Thursday too, with banks and cements faring better."
Hopes of good annual corporate results have also given a positive tone to the market, said Dr Shahid Zia, adding now investors' focus is on annual earnings of the companies, particularly their expectations are high about the announcements of banking and cement sectors.
As far fundamentals are concerned, the market seems strong and liquidity position is positive, said a broker, adding the subscription of the IPO of PPL is very encouraging. According to Privatisation Commission announcement, PPL IPO has set a new record and this is a very positive sign for capital market, he added.
At close of the market, gainers beat losers 28 to 9 with 53 remaining unchanged, of a total of 90 scrips changed hands on the day.
Among leading gainers, National Bank and Lucky Cement improved by Rs 1.50 each, DG Khan Cement Rs 1.25, Union Bank Rs 1.20 and Bank of Punjab 95 paisa.
Among major losers, Engro Chemical was down by 60 paisa, Nishat Mills 55 paisa, PPL 50 paisa and Pakistan Industrial Credit and PSO 40 paisa and 35 paisa, respectively.
The National Bank and the Bank of Punjab were volume leaders of the day with 13.026 million and 12.305 million shares turnover, respectively.
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