PSO leads LSE rally

The winning rally stretched to fourth consecutive session on the Lahore Stock Exchange (LSE) on Thursday with a sharp movement in PSO, which pushed the index 5.37 percent up, amid positive news regarding settlement of the regulator-brokers row over the issues of futures trade. The LSE-25 index surged by 192.32 points to 3771.24 points from 3578.92 points of Wednesday, while the volume was slightly low to 69.529 million shares from last day's 78.662 million, registering a decline of 9.133 million shares.
The opening of the market was above previous day's price level, and it celebrated the positive news of settlement of contentious issues between brokers and the Securities and Exchange Commission of Pakistan (SECP). PSO led the market and finally ended at 385.85 after moving in the band of 370.15 and 385.85. Fauji Fertiliser, UBL, PPL and OGDC all scored handsome gains and ended with a positive note.
Stock brokers said the movement in the petroleum sector was so wild that they were capped at the upper level, adding another news that there were very slim chances for increase in tax on stock brokers for purchase of shares also made people happy and boosted investors' confidence.
They said the SECP has met most of the demands of the brokers at a meeting with board members of the three stock exchanges held in Islamabad on Wednesday. This will boost the sentiment and improve liquidity position in the market, they added.
A broker, however, claimed that the SECP has accepted these demands on the directives of the government who wants to keep the market in positive zone so as to lure people for subscription of UBL shares being offered for sale from Friday, hence the trend might reverse soon.
The rally inspired by the positive outcome of the meeting of brokers representatives with SECP Chairman Dr Tariq Hassan and other authorities, was the real cause for accentuating activity in the market, said Javed Iqbal, chief executive, Javed Iqbal Securities Ltd.
He said that shares, which were in badla, moved up with an aggressive tone and finally were capped at upper levels, adding that all news reports were positive and the market was likely to move up further.
The SECP has assured the representatives of the stock markets that it would take further steps to boost the capital market, which is a very positive development, he added.
In what the market will move Friday, he said generally the trend seems upward, but because of weekend, the people might go for profit-taking, especially in the second session, scaring any untoward incident during the holidays ahead.
Out of a total of 77 traded scrips, 42 closed in positive column, two showed negative signs, while 33 maintained its previous positions.
PSO gained Rs 11.85, Fauji Fertiliser Rs 4.00, UBL Rs 2.90, PPL Rs 2.90 and OGDC Rs 2.40. In negative column, Pakistan Oilfields and Trust Leasing Corporation shed Rs 12.90 and 25 paisa, respectively.