Bulls held sway on Lahore Stock Exchange (LSE), where share prices surged for the third consecutive sessions, under the lead of Pakistan Petroleum Limited (PPL), which outperformed and received aggressive buying. The LSE-25 index rose by 70.14 points or 1.8 percent, closing at 3783.51 points compared with previous day's 3713.37 points. Overall turnover significantly mounted to 180.273 million shares from 128.227 million shares of Tuesday, showing an increase of 52.046 million shares or 40.5 percent.
The market took a healthy start and subsequently bulls were in full command, which supported the index to move upward. Led by PPL, oil and gas sector received an overwhelming response from individual as well as institutional buyers followed by National Bank and other banks, along with cement stocks, which also received fresh investment. On loser's counter, Nishat Mills and some banking stocks showed weakness.
According to stock analysts, investors' interest was extraordinary and big and small investors were seen equally eager to join the buying spree, which started from the outset and continued till the close. News from privatization front and reports of corporate earnings are very encouraging, therefore, chances for a halt in the persisting rally seem very distant, brokers said.
The sentiment is bullish and last two day's performance of the market shows that chances for an immediate correction are not there, a broker said. During the three sessions, the LSE index has gained 153 points, he further said, adding on Tuesday it crossed the 3700 level and now was moving towards the 3800 level, which might be achieved on Thursday.
Mirza Ejazullah Baig, Director, Capital Vision Securities Ltd, said that in oil and gas sector, PPL was the day's star winner and rally in it was so wild that the LSE management had to place upper caps to stop it exceeding limits. He pointed out that the government has accorded approval of off shore drilling to the state-managed PPL, which is a very positive development. Similarly, there is a strong anticipation of 20-25 percent dividend from PSO due to which interest in it has further grown. According to him, foreign buying is a major contributory factor behind increased interest in oil and gas sector, especially in PPL, OGDC and PSO. PPL is also in focus of foreign buying. Moreover, fresh interest is growing in cement sector amid hopes of positive developments regarding big dams, he added.
About possibility of a technical downslide, Ejaz Baig said that the market was overbought and people were expecting a major correction at 7260 level. But as soon as, the KSE index breached this level, pressure emerged that led to erosions, which averted a major correction. However, the market is overbought and correction is overdue, he said, adding, after registering another 150-200 points, it could take a technical turn and people must be prepared for a sharp correction.
Out of a total of 95 traded scrips, 21 improved in worth, 27 landed in negative zone, while 47 stayed pegged to its previous levels. PPL topped gainers column, recording a net gain of Rs 11.75, National Bank improved by Rs 3.40, D.G. Khan Cement appreciated Rs 2.35, Bank Alfalah improved by Rs 2.85 and PICIC Commercial Bank gained Rs 2.50. In negative column, Nishat Mills was down by Rs 2.05, Allied Bank Modarba Rs 1.50, PICIC Growth Fund Rs 1.35, Dewan Salman Fibre and Engro Chemical Re 1.00 each, respectively.
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