Bullish trend prevailed on Lahore Stock Exchange (LSE), where increasing badla rates restricted the equities in narrow range amid low trading turnover despite positive news of improvement in Pakistan's long-term rating. The LSE-25 index showed an improvement of 10.25 points, closing at 2729.77 against 2719.52 of Monday, while transaction volume marginally declined to 46.703 million shares as compared to 47.344 million shares traded a day earlier.
The market opened on a healthy note and remained in the positive zone throughout the day. There were strong news both positive and negative in the market. The increasing badla rates discouraged the investors.
The badla volume is on the rising trend, which has increased to Rs 3 billion at the LSE and Rs 27 billion at the KSE whereas rate has been increased to 16 percent and 13 percent, respectively, said Ahmad Nabeel of Invest and Finance Securities, while commenting on the market sentiments. Besides, the overnight money market rates are also on rising trend, which squeezed the liquidity that left negative impact on the stocks trading, he maintained.
Though, President Musharraf has given indications with regard to construction of new dams yet it failed to leave positive impact on the cement sector shares. Another reason that put the market in narrow range was its overbought position and investors offloaded their holdings to pocket the available margin, he added. However, the raising of Pakistan's rating by Standard and Poor's could attract foreign investment in the country, he maintained.
The release of Asif Zardari was taken as negative in the market, as most of the investors started apprehending new political set-up in the country within next four-five months. However, some experts are taking it as a threat to opposition (MMA), which is planning agitation movement against the government, he added.
Declining stocks were ahead of advancing ones as out of total of 98 active issues, 16 companies registered gains, 24 landed in negative column, while 58 stayed glued to their previous levels.
Capital Assets Leasing and WorldCall Communication gained Re 1.00 each, Fauji Fertiliser moved up by Rs 0.55 while Engro Chemical and Adamjee Insurance were up by Rs 0.45 and Rs 0.35, respectively. Sui Northern declined by Rs 1.10; Maple Leaf Cement lost Rs 0.80, while PPL and PSO depreciated by Rs 0.70 each.
Bank of Punjab was the market leader whose 9.095 million shares changed hands followed by Fauji Fertiliser Bin Qasim with total transaction of 5.131 million shares.
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