Powered by institutional support in fuel and energy sector and banks, share values flared up on Lahore Stock Exchange (LSE), with a substantial rise in turnover indicating improvement in buying interest form investors. The LSE-25 index surged to 2,771.76 points from 2,743.60 of last Friday, posting a net rise 28.16 points.
There was also a visible improvement in volume, which at the close totalled 53.130 million shares as compared to 33.655 million of the previous closing session, registering an improvement of 19.475 million shares.
After taking a healthy start, the market maintained the upward move amid across the board buying interest, particularly in PSO and Union Bank that led the entire proceedings followed by other oil and gas shares and banking stocks.
According to stock analysts, both the sectors outperformed and contributed in helping the market breach highest level at 5,619 points, adding it was also the highest closing of KSE index. At the close, gainers also thumped losers by a wide margin.
A leading broker said there were strong rumours in the market that the Privatisation Commission of Pakistan has called expression of interests (EoI) for PSO sell-off during the next week that caused spark in the entire sector with PSO taking the lead.
According to brokers the reports about 23-percent growth in cement sector and raise in demand of fertilisers also generated fresh interest in both sectors.
A broker said that the market was expected to continue treading the uphill course on Tuesday and there were strong chances that it might reach new highs.
The change in market direction was purely on technical grounds, as after staying subdued for many sessions, it was expected to take a turn, said Mirza Muhammad Irfan, equity research head of Capital Vision Securities Ltd.
However he pointed out that before change in the direction people were expecting a downward correction but it came out of the range-bound situation without a sharp dip. He added that in the morning it was up by 15 points and then with short dips it kept improving gradually on the back of interest in banks, fuel and energy and fertilisers.
As such there is no significant positive news to provide support to the market and it is moving on its own weightage, he said adding if the political scene remains calm and there is no negative news from any other front, the market is expected to remain in the positive zone in the coming days, under the lead of fuel and energy, banking sector and cements, Irfan viewed.
Overall there were 91 scrips changing hands on the day, of which 34 were up, 10 landed in negative zone, while 47 were intact to its previous levels. Prominent gainers were PSO improving by Rs 5.05, Union Bank Rs 2.20, Bank Alfalah Rs 1.45, Faysal Bank Rs 1.25 and Pakistan Oil Fields Rs 1.25. Those closing in negative column included Southern Electric Power shedding Rs 1.15, Adamjee Insurance Rs 0.40, Askari Commercial Bank Rs 0.30, Prudential Mod Ist and Bosicor Pakistan Rs 0.15 each.
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