The local share market maintained rising posture and gained more than four percent during the last week, following multiple supporting factors such as good corporate results, foreign investment in selective banks and world funds' positive reports about Pakistani bourses.
The week began with a bullish note and then bull-run continued, except the second day, during the week with key shares resisting profit-selling pressure. Brokers said that besides local interest, foreign buying was also witnessed in key banks, which boosted the sentiments in the market. The index based shares like PPL, OGDC, National Bank and MCB Bank dominated the proceedings from the very outset and set trend for the following sessions. It is worth mentioning that the LSE-25 index crossed the level of 4500 points during the week under review.
It gained 199.02 points (4.53-percent) closing the week at 4586.83 points compared with preceding 4387.81 points. Another notable feature of the week was a remarkable improvement in volume, which improved by 22.111 million shares (89-percent), reaching 46.860 million shares as against 24.755 million shares. Analysts said that surge in volume was a very positive development meaning interest was returning to the market. However, they pointed out that turnover was still below the mark.
Share prices moved in a narrow range on the first day, but the market ended with a fractional increase amid low volume. The LSE-25 index closed at 4393.31 points as against 4387.81 points, 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.
Equities moved both the ways on the second day and finally settled in the red zone, however, improvement in turnover was noted. The LSE-25 index registered a decline of 16.57 points and closed at 4376.74 points against 4393.57 points while trading turnover increased to 18.819 million shares as compared to 16.810 million shares. National Bank, Fauji Fertiliser Company, Askari Commercial Bank and Callmate Telips Telecom resisted declines, while Adamjee Insurance, Sui Northern, Pak Oilfields, PICIC and PSO remained under pressure.
With an immense interest in banking sector, share values shot up on the third day (Wednesday), recording an overall 1.76-percent gain, amid improving volume of transactions. The LSE-25 index registered a net gain of 77.07 points to 4453.81 points from 4376.74 points. Volume improved to 30.823 million shares from 18.819 million shares, increasing by 12.004 million shares.
The local share market extended the rally on fourth day (Thursday) and discharged by petroleum and banking sectors, it further gained strength with the benchmark index crossing 4500 mark. The LSE-25 index closed at 4561.68 points as compared to 4453.81 points, showing an improvement of 107.87 points. Volume also mounted up to 37.925 million shares from 30.823 million shares of the preceding session, increasing by 7.101 million shares.
Share prices also maintained the rising tempo on last trading day of the week under review with banking sector again taking the lead.
The LSE-25 index surged to 4586.83 points from 4561.68 points, improving by 25.15 points. Overall turnover soared to 46.860 million shares from 37.925 million of the preceding session, registering an increase of 8.935 million shares.
Bank of Punjab and Allied Bank were the day's key gainers while PPL and Arif Habib Securities Ltd were the major declining stocks.
The market showed a good performance during the month of January due to different factors, including foreign buying in key banks and corporate results, an analyst said.
According to him, other supporting factors, which maintained the positive posture during the month of January, were one-year exemption in capital gains tax, some international funds and agencies' positive reports about the Pakistan market etc. A rumour regarding MCB Bank and Barkley Bank partnership also triggered foreign buying in the former, he pointed out.
The market may show good performance during the next week, if 9th and 10th Muharram passed smoothly. However, profit taking could also surface at high levels, he pointed out.
Comments
Comments are closed.