Range-bound activity on LSE

The share market almost ignored the London blasts incident killing scores of people, however, activity remained range-bound on last trading day of the week where equities moved back and forth and the benchmark index ended with a nominal decline. The LSE-25 index closed at 3828.33 points compared with 3831.65 points showing a nominal downward movement of 3.32 points.
Volume was also slightly down to 32.787 million shares from 37.629 million shares of the last session, posting a decline of 4.841 million shares.
The market paid hardly any attention to the tragic incidents that took place in London, in which dozens of people died, stock analysts said. The market went up and down receiving alternate buying and selling orders throughout the day. However, because of key players' lack of interest, turnover was very thin, they stated. Adamjee Insurance on Friday topped gainers list, while PTCL was the top loser, however it shed thinly.
Oil and gas sector also remained active once again, playing a key role in keeping the market stable, brokers said. PPL, PSO and Pakistan Oilfields were the star performers in this sector. Stock experts said they foresee oil and gas sector playing a prime role in the capital market in the coming sessions.
The market gained over 100 points during this week and the whole credit for it goes to oil and gas sector, which remained the major gainer this week too, said Ahmed Nabeel, head of operations, Invest & Finance Securities Ltd.
He added that the market was range-bound and it gained maximum 27 points, but afterwards, lost 27 points.
It was an excellent performance of the Pakistani capital markets, which remained silent despite a terrorist incident of bombing in London, he pointed out. "After 9/11, it was 7/7 which shocked the whole world." It is possible that like 9/11 cash inflow may start after some time, from UK-based Pakistanis, to Pakistan and give boost to country's bank deposits and real estates, he stated.
One of the major reasons for stable market is that crude oil remained stable at 61.50 dollar per barrel after shedding 4 dollar in the evening of 7/7, Nabeel pointed out.
Another reason for neutralised market is that KSE board has issued letters to advisor of prime minister and finance minister that they will not reduce COTs from now onwards.
It means that the board has got some clear indications from higher authorities of COTs and margin finance running in tandem, otherwise they could have taken this stand at a much earlier stage, he added.
"In my opinion, the market is stable and may improve Inshallah, and investors might see improvement in the market especially in oil & gas, fertiliser and cement sectors," Nabeel observed.
Out of a total of 81 scrips changing hands on the day, 31 were up, 9 landed in negative zone while 41 maintained their overnight positions. Among major gainers, Adamjee Insurance was up Rs 3.25, PPL and Faysal Bank Rs 3.05 each, PSO Rs 2.10 and Pakistan Oilfields Rs 2.20. In negative column, PTCL shed Rs 0.70, Worldcall Communications Rs 0.60, Sui Northern Rs 0.40, Sui Southern Rs 0.20 and Nishat Mills Rs 0.15.