Slow activity on LSE

Activity remained very slow on Lahore Stock Exchange (LSE), seemingly due to lacking interest on the part of potential players, especially from the institutions which resulted in lacklustre.
The LSE-25 index ascended to 5,600.63 points from 5,596.69 of Wednesday, registering a marginal improvement of 3.94 million shares. Volume retreated to 56.589 million shares from 63.965 million shares, registering a decline of 7.376 million shares.
The market painted a dull picture throughout the day following lack of interest in key shares, brokers said. Oil and gas sector, which has played a key role to lead the index towards all time-high levels, was depressed on Thursday. However, banks, especially United Bank, Askari Bank and MCB received fresh buying and added to their worth substantially.
Analysts said the index based shares including PSO, PPL and OGDC which have gained a lot of strength in the recent sessions and helped the index reach the present levels have undergone correction due to which activity has turned slow in the market. But they pointed out that activity is likely to pick up as soon as correction in heavy weights ends.
There is no doubt that the market is staying on strong fundamentals, but this is also a fact that it is highly overbought, especially the levels of banks have touched their peaks, said Mirza Ejaz Ullah Baig, director, Capital Vision Securities Ltd. Except oil and gas sector, all shares have attained their highest levels, especially banks and cements.
Activity has slowed down in cements after the government decision to allow its import. There are strong prospects that now the prices of cement will come down in the local market, he added. Banks have already touched their highest levels and have little room for further improvement, he pointed out. However, oil and gas sector is likely to pick up further amid increase in oil prices in the international market.
Oil has reached $72 per barrel and in case of US attack on Iran, it will further shoot up, Mirza Ejaz Ullah Baig said. "In this perspective, I foresee a bright future of oil exploration companies ahead." Similarly, the privatisation of gas distribution companies such as Sui Northern and Sui Southern is also in the offing, which will have a healthy impact on these companies' shares. Therefore, long-term scenario of the market is good but in the near term, activity may remain range-bound due to investors' worries regarding the forthcoming federal budget, he pointed out.
Out of a total of 110 traded scrips, 31 were up, 26 landed in minus zone while 53 were intact to their past levels. Among major gainers, UBL gained Rs 7.25, Askari Commercial Bank Rs 4.60, MCB Rs 4.00, Adamjee Insurance Rs 3.00 and Allied Bank Rs 2.60. In negative column, Pakistan Oilfields shed Rs 20.00, PSO Rs 6.00, PPL Rs 3.45, Union Bank Rs 2.95 and DG Khan Cement Rs 2.75.
OGDC and PPL dominated the proceedings by volume with 6.880 million and 5.254 million shares, respectively.