Share prices on Lahore Stock Exchange (LSE) gained around 5 percent during last week following aggressive buying in banking, petroleum and cement sectors, which helped the index to cross the 4600 mark.
With banking, cement and petroleum sectors playing the leading role, the market maintained buoyancy during entire week and gained handsomely. Although the volume improved, according to experts, it was not up to the desired level due to lack of local buyers' participation. The LSE-25 index soared to 4642.10 points from 4432.95, registering an improvement of 209.15 points, or 4.71 percent. The volume swelled to 37.488 million shares from 29.095 million shares, surging by 8.393 million shares, or 29 percent.
"So far we have witnessed excitement of foreign buyers in certain shares, but the response from local investors was not to the extent we expected," an analyst said. He pointed out that if the market continued with its present pace, local investor would keep himself aloof for a longer period. According to brokers, banking sector's role has been of much significance in building up the rally. Banking sector has made enormous gains in last couple of weeks, with MCB Bank and National Bank recording 10 to 15 percent growth.
Share values moved in upward direction on the first day of the week, with banking sector remaining on top position. The LSE-25 index ascended to 4458.87 points from 4432.95 points, recording a net gain of 25.92 points. Turnover surged to 32.045 million shares from 29.095 million shares, showing an improvement of 2.950 million shares.
Overall sentiment remained positive while banking sector led the market, showing an outstanding performance. However, performance of the index-based shares such as OGDC, PPL and PSO etc was below the mark, due to which movement remained restricted to side items. MCB Bank, UBL and National Bank did pretty well and scored hefty gains.
On the second day, equities moved both ways but finally settled in the red zone amid ascending transaction volume on account of profit taking in the banking sector. The LSE-25 index marginally declined by 8.49 points, closing at 4450.38 points against 4458.87 points, while volume increased to 37.751 million shares as compared to 32.045 million. Cement sector including Lucky Cement, Kohat Cement and Cherat Cement helped the market avert more declines, while Faysal Bank, Union Bank, MCB Bank, Picic Commercial Bank, Askari Commercial Bank and United Bank remained under pressure.
Led by major banks and key petroleum scrips, the share market moved up again on Wednesday, mainly because of late buying spree, making the index to score a century. The LSE-25 index closed at 4550.86 points as compared to 4450.38 points. The volume, however, was slightly down to 34.954 million shares from 37.751 million, depicting a fall of 2.796 million shares.
Bullish spell prevailed on Thursday also, where banks led the rally while the index scored a fresh gain with also a visible increase in turnover. Trading started with overnight bullish note and subsequently the rally, mainly driven by banking sector, and continued till the closing bell rang, with the index gaining 61.34 points.
The LSE-25 index finally ended at 4612.20 points compared with its overnight closing at 4550.86 points. Turnover depicted a significant improvement to 58.896 million shares from 34.954 million of the preceding session, rising by 23.941 million. The market maintained previous day's rising tempo throughout the day with National Bank and MCB Bank once again staying on top. It was truly a banking sector driven rally, which performed extremely well with the support of PSO and some other sectors.
Upward thrust also continued on last trading day of week, Friday, where the market gained another 0.64 percent with Adamjee Insurance, banks and petroleum sector dominating the proceedings. The LSE-25 index surged to 4642.10 points from 4612.20, registering a net gain of 29.90 points or 0.64 percent. Turnover, however, was drastically down showing lack of interest from local buyers. The volume was down at 37.488 million shares compared with previous day's 58.896 million, retreating by 21.408 million, or 36.34 percent.
Experts were of the view that due to various factors, foreign investors' interest in banking, cement and oil and gas sectors were enormous. Therefore, the market, next week, was unlikely to change its direction. They said that MCB Bank and OGDC were attracting foreign buyers due to the news of their GDRs. In the recent discoveries in Tal Block, oil ratio is more than gas ie 53 percent. Therefore, there is no pressure on oil sector and it is also likely to fare well in the future.
Moreover, according to an analyst, from January onward, the world-wide market performance has remained very encouraging, they said, adding during this period, Hong Kong market surged by 18 percent, Mumbai 30 percent, China 50 percent and Pakistan 7 percent. In view of above facts, the market future outlook seems positive, provided there occurs no change in its internal and external state of affairs, he stated.
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