Equities, helped by aggressive buying in banks and textiles, remained in the upbeat mood on Lahore Stock Exchange (LSE) Wednesday, while index moved up by 52.28 points amid decline in overall trade turnover. The LSE-25 index closed at 3468.79 points as against 3416.51 of the previous session, while turnover moved down to 106.155 million shares from 118.036 million shares of Tuesday, registering a decline of 11.880 million shares.
Opening with a positive note, the market remained in a bullish frame of mind throughout the day, powered by strong buying interest from the institutional side. According to market experts, MCB in banking sector and Nishat Mills in textile sector appeared as key attraction for the buyers followed by PTCL and some cement stocks. Fuel and energy sector, however, showed a mixed performance, as OGDC and Pakistan Oil Fields were stable, while PSO depicted weak signs.
Brokers said that bulls occupied the driving seats from the beginning of the session, and the subsequently continued strengthening their position gradually. Analysts said the LSE-25 index, which breached 3,400 level during the past session, was moving towards 3,500 level now, which it might achieve Thursday or the day after. In two sessions, the LSE index has gained 126 points.
Javed Iqbal, chief executive, Javed Iqbal Securities Ltd, said that fundamentals were supporting the market and it was improving every day with short corrections, which had turned the situation attractive for investors. Economic indicators are in favour of the market and it is gaining strength on the basis of merit, he further said, adding it still had a lot of depth to pick up further.
Institutional interest is overwhelming, while presence of foreign buyers is also visible, particularly in telecommunication giant PTCL has appeared as the most favourite scrip for foreign investors, he pointed out. "In view of huge institutional and foreign interest in the market, I foresee that if the nothing unusual happens, the market might touch 9,000 points level by end of the year," he stated.
One of the most significant and positive features is that the market is gaining momentum with corrections, which is a very healthy sign, Javed Iqbal said. Moreover, the level of awareness is increasing among the public about the capital market and media, especially the electronic media, playing a key role in this regard due to which the capital base is showing growth. Likewise, good governance and transparency level has also improved that has boosted investors' confidence in the market, he stated.
Out of a total of 94 traded scrips, 24 improved in worth, 21 stayed in negative zone, while 49 maintained its previous levels. Among major gainers, MCB surged by Rs 3.35, Nishat Mills Rs 3.15, PICIC Growth Fund Rs 1.70, Nishat (Chunian) Rs 1.50 and OGDC Rs 1.45. In negative zone, Askari Commercial Bank shed Rs 3.20, PSO Rs 2.40, National Bank Rs 2.20, Adamjee Insurance Rs 1.50 and D.G. Khan Cement Rs 0.80. PTCL and OGDC were the volume leaders with 24.811 millions shares and 19.236 million shares, respectively.
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