Lahore stocks strengthen

Anticipation about good corporate results for December closings kept investors' hopes alive and provided strength to the local share market which gained 3.80 percent, with also a significant improvement in trade turnover, during the last week.
The particular feature was that the market opened the week ended on Friday (January 12) with a bullish start following buying interest in selective sectors, particularly banks and oil and gas sectors. In middle of the week, pressure was witnessed but the losses were only marginal, while fluctuation in turnover was also quite insignificant.
According to market experts, high hopes regarding December closing results, one-year extension in exemption of capital gains tax and expectation of some relief in capital value tax kept investors interest intact throughout the week under review due to which volume also improved. There were also rumours in the market that three bourses' representatives were scheduled to meet Minister of State for Finance Omer Ayub shortly to take up with him CVT and other issues.
All such factors played a key role in maintaining the sentiment bullish and helped the index gain strength. The LSE-25 index gained 157.48 points (3.80-percent) to close at 4291.63 points as compared to 4134.15 points. Volume surged to 24.788 million shares from 14.310 million shares, increasing by 10.478 million shares (73 percent).
Fresh buying interest in oil sector and banking stocks helped the market stay in bullish zone, and finish with a net gain of 52.26 points, with a visible improvement in turnover, on first trading day of the week under review. The LSE-25 index closed at 4186.41 points compared with 4134.15 points, improving by 52.26 points (1.26-percent). Trading turnover surged to 21.302 million shares from 14.310 million shares, registering an increase of 6.310 million shares (49-percent).
The market took a bullish start and then stayed in bullish zone most of the day on account of growing interest in oil sector followed by banks. The market behaved well from the outset and the index kept gaining strength on the back of PSO and other oil and gas stocks. There was also tangible improvement in turnover. Besides PSO, National Bank, Pakistan Oilfields and public sector exploration giant, OGDC showed a significant improvement, signalling fresh interest in the market.
Bullish trend prevailed on the second day too, with equities registering gains amid ascending volume. The LSE-25 index jumped by 105.55 points and closed at 4291.96 points as against 4186.41 points while trading turnover increased to 27.293 million shares as compared to 21.302 million shares. National Bank, Askari Commercial Bank, Soneri Bank, Prime Commercial Bank and Faysal Bank aided the sentiment while Adamjee Insurance, Bank of Punjab, PPL and FFC remained under pressure.
The share market was range-bound on Wednesday with a fractional difference between gainers and losers due to lack of interest on part of small investors. The LSE-25 index ended at 4264.40 points as compared to 4291.96 points, depicting a decrease of 27.56 points. Volume slipped back to 22.704 million shares from 27.293 million shares, declining by 4.598 million shares.
Share prices turned mixed, but ended in minus zone on second last day of the week with low volume, which the analysts said was due to lack of interest, especially from the general investors. The LSE-25 index showed a marginal decline of 8.13 points closing at 4256.27 points from 4264.40 points. Turnover further declined to 16.166 million shares from 22.704 million shares, registering a fall of 6.537 million shares.
The market opened with a bullish note, but failed to sustain because of lacking support from potential investors. Except initial few minutes, the market kept moving up and down and failed to take a clear direction for a longer period. However, Engro Chemical attracted fresh buying on the news of acceptance of its Rs 101 million bid for Qadirpur gas field while banks showed a mixed trend.
Share prices moved up on the weekend on expectations of corporate results as well as report of an international brokerage house recommending investment in Pakistan equity market. The LSE-25 index surged by 35.36 points to 4291.63 points from 4256.27 points. Volume improved to 24.788 million shares from 16.166 million shares, surging by 8.622 million shares. The market showed bullish signs, particularly in the second session on the basis of buying in banking, oil and energy sectors. National Bank and PPL were the day's most favourite chips while DS Industries and Attock Refinery were the prime losers.
According to analysts, there is strong anticipation of encouraging corporate results for December closing, therefore, the market is expected to stay bullish in the near term, but after the announcements are over, it might again turn bearish. Another encouraging development is the report of an international brokerage house released on Friday, which has recommended Pakistan equity market for buying and termed its outlook better than India, they pointed out. However, they observed that in the near term, market sentiment is bullish but its medium and long terms outlook does not seem encouraging in view of likely political developments taking place during the year which is the election year.