Since there was no considerable movement in blue chips, mainly because of PTCL issue and confusion over appointment of bourses chairmen, equities moved randomly on Lahore Stock Exchange (LSE) during the past week, however, following interest in fertilisers, cements and banks the index managed a gain of 1.30 percent.
In addition to confrontation between the regulator and stock exchanges and uncertain state of affairs about PTCL deal, the brokers remained busy in elections due to which activity was also slow during the week under review. The election has lost its charm, earlier due to appointment of independent MDs and now SECP ruling of making non-brokers chairmen of the bourses has sidelined the brokers.
But on hopes of withdrawal of the SECP directive, the old rivals in the LSE launched their campaigns silently. However, five directors were elected unopposed which are believed to be the consensus candidates of all the active LSE groups. Now there will be no election on 17th, the day, which had been fixed for polling.
So according to some brokers, this was also a factor for keeping activity slow in the market during the past week. However, the LSE-25 index managed a gain 57.45 points and finally closed at 4,476.25 points as against 4,418.80 points.
Volume was slightly up to 69.404 million shares from 68.161 million, showing a rise of 1.243 million shares.
Equities remained in a bullish mood on first day of the week, and fresh buying in PSO and banking stocks jacked up the index 0.89 percent and volume of transactions 24.89 percent. The LSE-25 index registered a net gain of 39.40 points to finish at 4,458.20 as compared to 4,418.80 of the previous session.
Turnover also climbed up and was finally registered at 85.119 million shares as opposed to 68.161 million shares, posting an increase of 16.957 million shares. The market moved in the positive zone throughout the trading session, with an encouraging movement in petroleum and banking sectors.
The market ignored all the negative factors and picked up because of backing from the big players. There was hardly any presence of small investors. Increasing interest from the big players also made emergence of correction impossible.
The trend turned mixed on the second day of the week under review when values moved both sides. However, buying in banks and cements helped the index settle in plus zone. The LSE-index gained 25.77 points to reach 4,483.97 compared with 4,458.20 points. Volume surged to 91.455 million shares from 85.119 million shares. The trend continued on Wednesday and the market after undergoing up and downward fluctuations ended with an easy note, following mid-session profit-taking.
The LSE-25 index declined to 4,467.13 points from 4,483.97, registering a fall of 16.84 points or 0.37 percent. Overall turnover descended to 81.983 million shares from 91.455 million of the previous session, showing a decrease of 9.471 million shares or 10.35 percent.
The market moved erratically and because of no response from blue chip companies, the index stayed in minus zone. According to brokers, there was slow movement in key chips and activity was seen only in banks and cement stocks. As there was no clear development regarding PTCL deal, big players stayed at distance, which resulted in thin trading activity.
Following fresh buying in oil sector, trade activity improved on second last trading day of the week, however, due to no tangible movement in index-based shares and late profit-selling, the market could make just a slight gain. The LSE-25 index closed at 4,485.39 points as compared to 4,467.13, registering an improvement of 18.26 points.
Volume improved to 91.214 million shares from 81.983 million of the previous session, posting a rise of 9.231 million shares. The market depicted weakness in early hours, but at midseason, activity picked up following buying in petroleum shares that pushed the index in positive zone. The market remained active till second half of the session with the index showing good strength, but then profit-taking set in which forced the index to shed part of early session gains.
Overall sentiment, however, continued to be positive throughout the session. Activity on last trading day of the week was low and finally ended with an easy note on the local market, which stayed directionless, mainly because of lacking support from the potential investors. The LSE-25 index ended at 4,476.25 points as compared to 4,485.39 of Thursday, registering a marginal fall of 9.14 points. Volume declined to 69.404 million shares from 91.214 million of the previous session, showing a decrease of 21.810 million shares.
There was a volatile activity in the market throughout the week, which dampened the sentiment, brokers said. About emergence of a technical correction, which has become over due, analysts said, as along as the affairs were in hands of big players, its chances were distant in the near future. Moreover, strong fundamentals of the market and foreign investment were the other key factors keeping the market stable, they added.
According to analysts, this is the month of building of portfolio for institutions, therefore, the market is expected to remain in a positive frame of mind in December. Overall sentiment is bullish and if all the outstanding issues between regulators and the bourses are resolved smoothly and a viable and effective mechanism for badla financing is framed, the market will be shooting up and moving towards new heights, a stock analyst in a leading brokerage house said while giving his views on future of the market.
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