Fresh buying in petroleum shares pushed equities in upward direction on the Lahore Stock Exchange (LSE) to close above 5,000 points level amid visible improvement in turnover.
The LSE-25 index gained 114.06 points or 2.31 percent to 5030.72 compared with Tuesday's closing at 4916.66 points. Trade turnover improved to 46.242 million shares from 27.233 million of the preceding session, registering an increase of 19.008 million shares or 70 percent. The market recovered on its internal strength and moved up with the index crossing once again 5,000 points mark.
According to stock analysts, the market has remained very dull for last many sessions and reached the levels, where buying was expected to emerge anytime. Volume also significantly rose, indicating fresh activity in the market, they added.
Oil exploration company, PPL, led the proceedings while there was also support from banking sector, fertilisers and cements. The market now seems coming out of the lackluster condition because of institutional interest, which, lured by attractive levels, are taking interest in the market, an analyst said. He, however, pointed out that the next few sessions will determine the future course of the market.
The market has remained depressed with range-bound activity for around last four weeks, and its oversold position helped bulls regain strength, Syed Asim Zafar, former chairman of LSE said.
He said the world stock markets have witnessed steep falls, including in India, therefore, the impact of this global trend was also witnessed over Pakistani bourses. Moreover, budget-related rumours also aided the bear-run and the market had turned highly oversold, he added.
The situation about the budget is becoming clearer and impact of rumours has started fading out gradually, he said, adding, now there was hardly any room for further falls. "If you analyse last session's trading, activity was very thin and volume was alarmingly low to the level where there was almost no room for more falls." Because of such factors, the market improved on Wednesday but it is still hard to say anything exactly how it will turn in the coming sessions, Asim Zafar pointed out.
Out of a total of 109 traded scrips, 41 improved their worth, 14 landed in minus column, while 54 stayed to their previous levels. Top gainers were PPL, which improved Rs 9.15, National Bank Rs 5.85, OGDC Rs 5.75, UBL Rs 3.25 and Engro Chemical Rs 3.00.
In minus column, Pakistan Industrial Credit lost Rs 1.60, Crescent Commercial Bank 80 paisa, Sui Northern 65 paisa, Crescent Standard Investment Bank 65 paisa, and Pioneer Cement 40 paisa. OGDC and PPL were the volume leaders with 9.705 million shares and 4.717 million shares, respectively.
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