Mixed trend on LSE

The local stock market painted a mixed picture amid conflicting news regarding the issue of phasing out of badla and commencement of margin financing last week, while the Lahore Stock Exchange (LSE) index managed a positive closing, depicting an increase of 1.59 percent.
The market moved both ways, as investors were confused because of contradictory news about the badla issue, which did not allow the market to settle down during the week under review.
Out of total five sessions of the week, the market showed bullish signs during the three sessions, registering 167 points while in the two sessions, it depicted weakness and shed 108.05 points, which means it remained directionless during the week under review.
The LSE-25 index closed the weekend with an overall increase of 59.13 points or 1.59 points to 3773.84 points from 3714.71 points, posting a rise of 8.768 million shares or 23.20 percent.
The market commenced trading on first day of the week with a bearish note, and then following no satisfactory development in pace of progress regarding margin financing for replacement of badla, as trading activity was very thin with the index plunging 2.09 percent.
There was very low activity in the market for lack of interest from institutional side and key players, which kept the index in negative zone most of the time, which went down by 77.86 points closing at 3636.85 points as compared to 3714.71 points of the preceding session. The volume lowered to 24.514 million shares from 37.791 million, showing a fall of 13.276 million shares or 35.13 percent.
On second day of the week, the market showed a good movement on account of news of increase in oil prices in the international market. An aggressive movement was seen in PSO. The index improved by 111.89 points to 3748.74 points from 3636.85, while turnover rose to 41.135 million shares from 24.514 million shares.
Similarly, rumours of extension in badla phase out deadline boosted the sentiment on Wednesday where equities maintained upward tendency for the second straight session, helping the index register 1.16 percent gain. The LSE-25 index went up by 43.78 points to close at 3792.52 points as compared to 3748.74 points of the previous session with ascending volume of transactions.
Equities failed to maintain the rally on Thursday, after profit-taking surfaced in key chips and mostly remained sideways, resulting in low turnover.
The LSE-25 index was down by 30.19 points or 0.79 percent to eventually close at 3762.33 points as opposed to 3792.52 points of the previous session. Overall volume totalled 46.559 million shares as compared to previous day's 52.541 million shares, registering a decline of 5.981 million shares or 11.38 percent.
The market depicted a mixed trend and kept moving both sides amid lack of interest from big players as well as institutions. The market opened with its overnight bullish note and activity in selective chips, particularly fuel and energy sector, boosted sentiments placing the index in the negative column. However, later profit-taking set in that triggered pressure and then dragged the index in minus zone.
Equities turned mixed on Friday, as people adopted a cautious approach and avoided going for big deals on the weekend, which kept trade activity very low. The LSE-25 index was only marginally up by 11.51 points or 0.30 percent ascending to 3773.84 points from 3762.of Thursday. The volume also moved down and reached 31.696 million shares compared with 46.559 million shares, posting a decline of 14.862 million shares or 31.92 percent.
Majority of people are also careful in making fresh deals because the findings of the report of the `Task Force', constituted by the SECP to probe the factors leading to 'March debacle' of the capital markets. However, an analyst said that the report, which has been submitted by the Task Force Chairman to the SECP and its contents are likely to be made public soon, will not have any negative impact on the market, as most of the victims have forgot what had happened in March 2005, and are hoping for a better future of the market.
There is also a group of people in the market who believe that the SECP will either extend the badla phase out date or allow both the COT and the margin financing running parallel. They called for finding early settlement of the issue of margin financing, adding until and unless serious and satisfactory steps are taken by the stock market management and the Securities and Exchange Commission of Pakistan (SECP) with regard to margin financing there were rare chances for positive change in the sentiment of the market.