Mixed trend on LSE

The last week ended June 17, 2005, witnessed a seesaw posture on the Lahore Stock Exchange (LSE), where equities moved in a tight band, as differing news reports about PTCL privatisation kept investors in a confused state of mind due to which their interest was very low in the business activity.
The week, under review, opened with a pleasant note, and the LSE-25 index gained 65 points or 1.74 percent to go beyond 3800-point levels on expectations of smooth privatisation of PTCL on June 18.
According to stock analysts, reports appearing in the press quoting the PTCL Chief Executive that there was complete peace in the company offices and the implementation of Rs 5 billion package will start from July, encouraged the market people. People were so happy that they ignored the news of crackdown on PTCL workers. The petroleum sector showed a mixed performance, as PPL led top gainers, while PSO was no one loser of the day.
On the second day of the week under review, the market came under pressure because of apprehensions over the PTCL sell-off after the PTCL workers union threatened to continue their strike against the privatisation policy. This dragged the index in negative column, which suffered a net loss of 58.11 points to close at 3760.44 points, with also a visible downslide in the turnover, which receded to 46.636 million shares.
On third day, the market regained strength after the news regarding patch-up between two major factions of PTCL union and the top management reached the trading halls. This boosted the sentiment of the market, and the index gained 63.67 points closing once again above 3800-point levels, amid also improvement in the volume.
The second last day of the week proved to be disastrous for the bourse, as rumours regarding lack of interest of major companies' interest in the PTCL sell-off, badly hit the sentiment, which kept the index in the negative zone throughout the session.
The LSE-25 index on that day was down by 111.75 points or 2.92 percent reaching 3712.36 points. However, due to pressure, the volume showed improvement. There were rumours that only two companies from Singapore and Middle East had deposited security money on the last date to participate in the bidding of PTCL on 18th of this month.
On the last day, the market remained in seesaw position with little interest from the potential investors because of confusion over the privatisation of PTCL. However, the index was fractionally up 24.84 points or 0.66 percent, touching 3737.20 points with a slight improvement in turnover.
In the whole week, the market moved in a tight band, as conflicting news about the PTCL privatisation kept people in a confusing state, stock analysts said, adding majority of the players adopted a cautious approach and waited for the final round on June 18.
Overall the LSE-25 index shed 16 points or 0.42 percent during the week under review. Turnover declined by 5.267 million shares or 9.05 percent during the week under review.
According to stock analysts, uncertainty over the privatisation of PTCL was the main disturbing factor forcing the market for a roller-coaster drive.
Phasing out of badla and confusion over the issue of margin financing was also a reason for subduing the sentiment.
The smooth completion of bidding process of PTCL will give a boost to the market, and it is expected to take a sharp upward turn on Monday to celebrate this news, a market dealer from a leading local brokerage house said.
He said that UAE telecom company, Etisalat, has won the bidding of PTCL offering US $1.96 per share, which is a very positive development for the capital market point of view.
On Monday, the Cabinet Committee on Privatisation is expected to meet to approve the bidding offer of the UAE company, he added.