Activity was dull in local stock market on the last trading day of the week where shares values remained depressed while the index ended with a weak note amid retreating volume of transactions. The LSE-25 index finished at 2715.66 points as against 2716.53 of Thursday showing a slight decline of 0.87 points.
Volume was also quiet, mainly due to short session on account of Ramazan, and was registered at 25.701 million shares compared with 55.398 million shares showing a drastic fall of 29.697 million shares.
There was no change in the market mood, which maintained its overnight trend showing very dull activity. Stock analysts said that start of the market was not bad, as it opened with a positive note and in subsequent hours remained in plus zone, led by PSO and MCB and cement stocks. But in last minutes following profit taking the index landed in the negative column to finally end with a fractional decline. Analysts termed high badla rate and appreciation in value of dollar as prime factors for the sluggishness. According to brokers, activity has also reduced on account of short trading hours, but they expect good trading during the coming week amid hopes of positive quarterly results of PSO, OGDC and others. Good results will encourage investors and activity will improve, they opined.
On the back of good quarterly results announced by the corporate sector so far, the market has potential to show strength, but is depressed on account of high badla rate and increase in demand of the dollar, said Ahmed Nabeel, head of Operations at Invest & Finance Securities Ltd, Badla rate in Lahore is 18.5 percent, while in Karachi market it is 14.5 percent, he pointed out.
According to him, due to economic revival industrial activity has increased in the country, which in turn has given rise to demand of the greenback. He, however, expressed the hope that the SBP's recent move to inject funds in the currency market will ease out the situation and badla rate will also turn normal. If the badla rate comes down, the market will improve and petroleum sector and PTCL may outperform, Nabeel pointed out. There are also positive news from the privatisation front, he said, and added, according to reports, the Privatisation Commission has planned to offload shares of Kapco through stock market in November this year, while it intends to call Expressions of Interest (EoI) for sale of PSO in the near future. Floating additional shares of OGDC is also on the cards, he disclosed. Moreover, it is being reported that a Canadian firm has been assigned the task for re-valuation of reserves of OGDC, which is healthy development from the market point of view, he pointed out.
In all, 80 scrips changed hands of which 21 improved in worth, 18 showed negative signs, while 41 were intact to their previous levels. Major gainers were PSO improving by Re 1.00, MCB Rs 0.75, Fauji Fertiliser Rs 0.70, Pakland Cement Rs 0.60 and DG Khan Cement Rs 0.50.
In minus column, Pakistan Industrial Credit was down by Rs 1.90, Engro Chemical Rs 1.25, Adamjee Insurance Rs 0.85, PPL Rs 0.70 and Hub Power Rs 0.40. OGDC led the market with 2.838 million shares followed by DG Khan Cement with 2.786 million shares.
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