Share prices moved in a narrow range on Lahore Stock Exchange (LSE) which ended with a fractional increase amid very low volume showing lack of interest on the part of potential investors. The LSE-25 index closed at 4393.31 points as against 4387.81 points of the previous session, registering a slight improvement of 5.50 points.
Trade turnover squeezed to 16.810 million shares from preceding day's 24.755 million shares, decreasing by 7.945 million shares. The market opened with a healthy note and subsequently moved in bullish zone, but activity was range-bound due to lacking interest on the part of investors. According to brokers, due to Muharram, investors were scared of law and order problem; therefore, they were not ready to go for fresh deals because of which volume had reduced significantly.
They, however, pointed out that people were upbeat regarding the coming corporate results, hence, sentiment was bullish and market could take a positive turn after Ashura holidays. MCB Bank and Adamjee Insurance were the top gainers of the day while PSO and PPL led losers' column.
Despite range-bound activity, the market is bullish mainly because of high expectations of corporate results and the index has been ending in plus zone since last many sessions, meaning buying is still taking place, Mirza Muhammad Irfan, head of equity research head of Capital Vision Securities Ltd, said.
On Monday banking sector performed well with MCB dominating the entire session proceedings. However, depressed sentiments of oil sector minimised the gains and the market finished only with a fractional gain, he added.
Commenting on range-bound activity, he said more than one day's badla due to Muharram holidays and rollover of futures were the factors responsible for restricted activity. However, he pointed out that despite low volume, the sentiment was bullish as investors were anticipating good corporate results for the second quarter.
Moreover, three bourses representatives were scheduled to meet with Omer Ayub Khan, the minister of state for finance, on 24th of this month and people were waiting for the outcome. If the government agreed with their point of view regarding relief in CVT, the volume would come to its normal levels, he stated.
Out of a total of 127 traded scrips, 25 improved their worth, 24 landed in minus column while 78 were intact to their previous levels. Among key gainers, MCB Bank was up by Rs 4.50, Adamjee Insurance Rs 2.30, DS Industries Rs 2.20, UBL Rs 1.60 and Kot Addu Power Company Rs 1.40.
In negative column, PSO shed Rs 1.70, PPL Rs 1.25, Picic Growth Fund Rs 0.50, while Crescent Commercial Bank and PTCL Rs 0.45, each. Fauji Fertiliser Bin Qasim and MCB Bank took the lead in terms of volume with 2.092 million shares and 1.253 million shares, respectively.
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