Bullish sentiment on LSE

Getting boost from the fuel and energy sector, banking stocks, and fertilisers, the share market remained in a bullish mood during the past week with the benchmark index ending with a net gain of 3.19 percent, amid almost a steady trade turnover.
During the week under review, the market performed well and despite some negative news, particularly the tragic incident of bomb blasts in the city claiming seven precious lives, remained in a bullish frame of mind.
The factors that kept the bullish sentiment intact were the strong fundamentals, especially of banks whose results pleased investors, brokers said, adding additional support coming from the petroleum sector and fertilisers further aided the sentiment and the market maintained its underlying sentiment positive, ignoring the news of blasts and some CFS-rumours.
One of the most significant features of the week's trading was the renewed interest in second-tier shares, which helped the market close with a handsome gain on the week end.
Out of five trading days, the market depicted positive signs during three days, while in two sessions, it depicted weakness, but the falls were fractional with the underlying sentiment remaining upward.
Overall, the LSE-25 index gained 125.08 points or 3.19 percent during the week under consideration to finally finish at 4041.36 points as compared to 3916.28 points. The volume, however, showed a little increase of 1.982 million shares to 68.177 million as against 66.195 million shares. Brokers said the volume, though was a bit higher as against the previous week, it stayed below the desired mark.
The share market performed unevenly on Monday, and moved erratically that badly dampened the sentiment, but due to late buying in selective items, the index finished with a positive note while the volume declined. At the final count, the LSE-25 index was down by 14.48 points or 0.36 percent to finish at 3930.76 versus 3916.28 points. Overall trade turnover came down to 56.193 million shares from 66.195 million shares, registering a decrease of 10.001 million shares or 15.10 percent.
The market performed roughly and equities moved both ways with a range-bound activity. The movement in blue chip companies shares remained slow, while majority of ready board items also stayed depressed. Good buying interest was, however, observed in Sui Northern and Worldcall Communications which provided strength to the index.
On second day of the week under review, the market registered gains across the board on account of fresh buying in gas, cement and banking sectors. The LSE-25 index improved by 51.77 points closing at 3982.53 against 3930.76, while transaction volume marginally declined to 55.493 million shares as compared to 56.193 million shares.
On the third day, mainly led by petroleum sector, equities extended their overnight gains, where the index went beyond 4,000 points level with a tangible improvement in trade turnover. The LSE-25 index closed at 4,044.29 points as against 3,982.53 of the preceding session, registering an increment of 61.76 points or 1.55 percent. The volume soared to 70.103 million shares from 55.493 million shares, posting a rise of 14.610 million shares.
On Thursday, the share market showed firmness whereas the index with a fractional gain closed above 4,000 level, amid an abnormally high volume. There was a sharp movement in early hours of trading with the index moving in plus zone on account of buying interest in oil and gas sector, banks and fertilisers. On the basis of strong buying activity in initial hours, there were high expectations that the index will shoot up significantly, but the news of bomb explosions in the city forced people to go for profit-taking. This affected the market sentiment, but there was hardly panic selling. Institutional interest in selective chips averted the possibility of major declines and the LSE-25 index ended at 4,045.34 points as compared to 4,044.29 of the previous session, depicting a marginal increment of 1.05 points. The volume was, however, significantly up and at the final count it was registered at 111.707 million shares versus 70.105 million shares, showing an increase of 41.602 million shares.
PSO and Bank of Punjab were the top gainers while Engro Chemical and PPL were the major victim of profit-selling caused by bomb blasts in the metropolis on that day. There was hardly any change in the market sentiment on last trading day of the week, as share prices stayed almost flat with the index showing a fractional decline, while overall trade turnover was drastically down. The LSE-25 index closed at 4,041.36 points as compared to 4,045.34 points, registering a slight decline of 3.98 points. The volume lowered to 68.177 million shares from 111.707 million of the previous session, showing a significant fall of 43.529 million shares.
The market was not much active on the weekend as majority of market players, including institutions and big brokerage houses stayed at distance due to concerns over law and order situation following explosions in the city.
Overall the market depicted a positive trend during the whole week with particular interest in fuel and energy sector, banks and fertilisers. It is significant development that the market ignored rumours regarding re-investigation of 'March crisis' and loss of precious lives in bomb blasts in the city, and remained stable, which is an indication of a good outlook of the market in the upcoming week, a stock analysts said.
Based on corporate results, the fundamentals of the market are strong, thus there is nothing to worry about the market, at least in the near term, he observed.
People might witness good trading in the coming week, particularly in the banking sector which has announced very encouraging results, he added. Some stock analysts viewed the market trend was still very positive and investors could benefit from the situation by investing in selective stocks, especially fertilisers, banking sector and cement scrips on dips.