Led by fuel and energy sector, equities recovered earlier losses on the Lahore Stock Exchange (LSE) amid the ascending transaction volume mainly on account of institutional support. The LSE-25 index registered an increase of 50.81 points, closing at 2791.32 against 2740.51 of Monday, while the trading turnover increased to 53.606 million shares as compared to 39.246 million shares traded a day earlier.
The PSO triggered buying spree in petroleum sector shares, which continued throughout the day.
The market opened on a healthy note, but could not sustain due to high badla rates. After about half an hour, the institutions provided support to the market that resulted in bullish rally.
Some experts were of the view that market improvement was merely because of technical correction. Optimism regarding privatisation of PSO played contributory role in the bullish trend, as investors were of the view the Privatisation Commission could take some concrete steps for privatisation of PSO in next week.
Besides, oil price has touched new high of $55.3 per barrel in the international market, which would add to the profit of petroleum companies, said Ahmed Nabeel of Invest and Finance Securities, while commenting on market sentiments.
The analysts are forecasting attractive financial results of first quarter of 2004-05 particularly of the oil manufacturing companies (OMC) which could give boost the stocks business. PSO is likely to announce its earning per share (EPS) of Rs 8.00 and OGDC Rs 1.80 to Rs 1.90, PTC is also expected to declare EPS of Rs 1.40 to Rs 1.50, while DG Khan Cement is expected to announce its EPS of Rs 1.70 to Rs 2.00. Similarly, National Bank is expected to show EPS of Rs 11 for the first nine month, he added.
However, Maple Leaf Cement due to its announcement of right share with a premium amount of Rs 8.00, disturbed the cement sector, he maintained.
Nabeel was of the view that market is likely to maintain sentiments for next 10-15 days. However, technical correction on account of badla rates could upset the investors' mood any time.
Advancing stocks were ahead of declining ones as out of a total of 81 active issues, 35 companies registered gains, five landed in negative column, while 41 stayed glued to its previous levels.
PSO gained Rs 6.80, Fauji Fertiliser Company improved by Rs 4.00, Engro Chemical appreciated by Rs 2.60, while PPL and OGDC were up by Rs 2.40 and Rs 2.20, respectively.
Maple Leaf Cement declined by Re 1.00, Faysal Bank lost 20 paisa, and Southern Electric Power was down by 15 paisa.
OGDC was the market leader whose 10.759 million shares changed hands followed by the Bank of Punjab with a total transaction of 7.810 million shares.
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