High volatility prevailed on the Lahore Stock Exchange (LSE), where share values failed to settle following panic selling in oil and gas sector in early hours, and subsequently recovery took place in second half of the session.
The LSE-25 index registered a marginal gain of 9.49 points to finish at 5651.90 as compared to Tuesday's 5642.41 points. On account of heavy selling, while the volume surged to 111.022 million shares from 74.131 million of the previous session, showing a significant increase of 36.891 million shares.
The market maintained the last day's bullish trend in the morning and due to interest in selective chips, the index mounted to 125 points in early hours, but later the profit-taking set in, which changed the entire scenario.
According to stock analysts, initially profit-taking was witnessed in oil and energy sectors and banking stocks, but later it spilled over to rest of the scrips taking the index downward.
They said there was no negative development from the market point of view and it was profit-taking that disturbed the sentiment. DG Khan Cement and Engro Chemical, despite pressure, maintained strength and added fresh gains to their worth. On the other end, Pakistan Oilfields and PSO were the prime selling pressure-hit scrips.
Mirza Muhammad Irfan, equity research head of Capital Vision Securities Ltd, said that high pressure caused by profit-taking, especially in oil and gas sector, played havoc with equities in early hours, when both the KSE index and the LSE nose dived. In oil sector, OGDC was the worst hit scrips which was capped at its lowest ebb. PSO and PPL are spot but even then they remained under heavy pressure, he added.
In banking sector, MCB and National Bank received massive profit-taking pressure but later recovered helping the index to finish in positive column. The market staged a smart recovery in last minutes which means it was fundamentally strong and the trend could change on Thursday, he observed.
According to him, in the second session National Bank made a good comeback on expectations of its results, adding people were anticipating a substantial rise in its earnings and hoped for at least 20 percent bonus. If the results matched with the wishes of investors, we might see a rally in the banking sector in general and National Bank in particular, he added.
Hopes of good results of National Bank has created further room for the market rise, he pointed out. Out of a total of 103 scrips, 14 were up, 40 landed in negative column while 49 stayed intact to their previous closing levels.
Among key gainers, DG Khan Cement soared by Rs 3.55, Engro Chemical Rs 2.50, Fauji Fertiliser Rs 1.60, Crescent Commercial Bank Rs 1.25, and Fauji Fertiliser Rs 1.15.
In minus zone, Pakistan Oilfields lost Rs 15.50, PSO Rs 10.85, MCB Bank Rs 9.40, ICI Pakistan Rs 8.50, and Adamjee Insurance Rs 4.10. DG Khan Cement and National Bank led the market by turnover with 14.372 million and 14.043 million shares, respectively.
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