Share values painted a mixed picture on Lahore Stock Exchange (LSE), with key players staying on the sidelines, adopting a wait-and see-policy mainly due to the forthcoming election of Shaukat Aziz.
The LSE-25 index shed 7.01 points closing at 2,760.45 points as against 2,767.46 of Wednesday. Volume, however, showed a slight improvement of 4.322 million shares totalling 41.828 million as compared to previous day's 37.506 million shares.
Investors were very happy when the market took a positive start and then kept showing upward movement with fresh buying in cement and oil & gas sectors. However, in the second half of the session, the direction of the market changed following profit taking that pushed index in negative column.
Afterwards, it showed an erratic movement and investors in disappointment took to profit taking forcing the index to end with a weak note, stock analysts said.
The market behaved roughly and remained direction-less on account of lacking support from big players, they further said, adding the trend may continue to prevail on Friday, which is the last day of trading.
Mirza Ejaz Ullah Baig, Director, Capital Vision Securities Ltd, said that the market remained volatile as key players appeared to be reluctant to take fresh positions before Monday.
However, cement sector did well despite absence of institutions. According to him, there is a strong anticipation in the market that government may announce construction of new dams on the eve of Independence Day.
As the announcement will directly benefit the cement sector, therefore, it has turned attractive for investors.
However, banking sector was depressed, especially Askari Commercial Bank performed poorly. Despite earning very good profits, it has declared neither divided nor bonus for its shareholders, he pointed out.
The bank has earned Rs 1.18 billion profits for the six months ended June 30, 2004 with an EPS ratio of Rs 9.38.
About the future direction of the market, Baig said after the election of Shaukat Aziz as Prime Minister the market will turn better with a cement sector remaining in spotlight.
The conversion of cement production units from furnace oil to gas or coal has reduced its cost of production and also enhanced profit margin. Any positive news regarding construction of new dams will trigger an extraordinary interest in cement sector, he observed.
Out of a total of 96 scrip, 11 improved its worth, 29 stayed in negative column, while 56 were unchanged. Among major gainers, D. G. Khan Cement was up Rs 0.85, PPL Rs 0.50, Hub Power Rs 0.30, Maple Leaf Cement and Fauji Fertiliser Rs 15 each. In minus zone, Askari Commercial Bank was down Rs 2.95, Sui Northern Rs 1.15, Picic Commercial Bank Rs 0.15, Pakistan Industrial Credit 1.05 and Union Bank Re 1.00.
D. G. Khan Cement and Maple Leaf Cement were the volume leaders with 5.204 million shares and 4.908 million shares, respectively.
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