Equities registered gains across the board on the Lahore Stock Exchange (LSE) amid ascending transaction volume due mainly to fresh buying, triggered as a result of announcement regarding extension of COT in the scrips of as many as 30 companies. The LSE-25 index jumped to 3678.25 from Monday's 3560.39, depicting an increase of 117.86 points, while the trade turnover increased to 52.814 million shares as compared to 43.483 million shares traded a day earlier. Besides, PTCL, Petroleum and fertiliser sectors helped equities to appreciate its values.
The market opened on a healthy note, and remained in positive zone during the entire day's trading. Fresh buying was seen in PTCL, OGDC, DG Khan Cement, PSO, Fauji Fertiliser Company, and National Bank, which, with substantial gains, also registered significant turnover.
It was an encouraging day for the stock market. Optimism prevailed in the market regarding early privatisation of PSO, PTCL, OGDC, and PPL, while extension of 30 companies on carry over transaction (COT) generated interest among the investors, said Ahmad Nabeel of Invest and Finance Securities, while commenting on the market sentiments.
However, fear of bearish rally due to some negative development on the political front in the country made the investors scared. PML(Q) chief Chaudhry Shujaat Hussain's statement vowing to continue fight against Pakistan People's Party (PPP) forced the investors to believe that there could be political uncertainty in future, while the investors termed his statement an attempt to foil the government's efforts regarding reconciliation with the PPP, he added.
Besides, liquidity crunch caused by recent crash like situation in the stocks would confine the market within negative zone, as investors are totally losing confidence, while the corporate results remained below their expectations, he maintained.
The market would now gradually move towards 8000-mark at the KSE subject to non-issuance of any negative notice from the State Bank of Pakistan (SBP) or the Securities and Exchange Commission of Pakistan (SECP), he added. Nabeel said the small and medium-sized investors must avoid day-to-day trading. Small positions in selective but profit-oriented shares for few months could yield margin for the investors.
Advancing stocks were ahead of declining ones, as out of a total of 78 active issues, 34 companies recorded gains, three went down, while 41 stayed glued to their previous levels.
PSO appreciated its worth by Rs 17.00, PPL gained Rs 11.00, Fauji Fertiliser improved by Rs 8.00, while ICI Pak and OGDC were up by Rs 5.75 and Rs 5.35, respectively.
In negative column, Bank Alflah lost 35 paisa, while Dewan Farooq Motors and LTV Capital Modaraba were down by 15 paisa and 5 paisa, respectively.
PTCL was the market leader whose 17.679 million shares changed hands, followed by OGDC with a total trading of 10.630 million shares.
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