The market painted a dull picture on Lahore Stock Exchange (LSE) on the last trading day of the week following lacking interest, however, sentiment stayed bullish and the market ended with a marginal gain.
The LSE-25 index closed at 4,535.83 points as compared to 4,516.07 of Thursday, gaining 19.76 points. Overall turnover, however, slipped back to 19.785 million shares from 21.826 million of the preceding session, showing a decline of 2.041 million shares.
Following political disturbance and law and order problems in the wake of filing of presidential reference against the non-functional Chief Justice of Pakistan, investors adopted a wait-and-see policy, analysts said. Majority of people stayed at distance as they awaited the result of today's Supreme Judicial Council (SJC) proceedings against the CJ, resultantly, volume, which was already very low, further declined, they pointed out.
According to brokers, activity was expected to remain low till final result of the SJC proceedings against the CJ. Another factor for the slow movement of the market was the spot position of most of banking stocks, brokers said. PSO and UBL today added to their worth significantly while Pakistan Insurance and Engro Chemical were the major losers.
Despite low volume, sentiment of the market is strong, which seems against the fundamentals, Ahmed Nabeel, head of operations, Invest and Finance Securities Ltd said. Due to political uncertainty, developing law and order situation, declining trend of oil prices in the international market and US media's criticism on Pakistan regarding the issue of al Qaida and Taliban, market fundamentals are weak but the sentiment is strong which is cosmetic. Big players are keeping the sentiment bullish artificially, he added.
"What we have witnessed today on TV screen has sent very negative signals to the world," Ahmed Nabeel said. The only positive factor is the strong position of Sacra, which today amounted to $616 million. "But of this figure, $22 million have come from Malaysia, probably for the possible deal with MCB, while $31 million from Netherlands for ABN Amro-Prime Bank deal."
Although foreign investors, so far seem alienated from what is happening in the country after the commencement of proceedings against the CJ, yet they could panic if the situation further worsens. Under the given situation the market people should not be impressed from the strong sentiment and use common sense while taking decisions for future deals, Ahmed Nabeel said.
Of 122 traded scrips, 22 were up, 37 landed in minus zone while 63 were intact to their previous levels. Among major gainers, PSO soared by 14.00, UBL Rs 6.40, National Bank Rs 4.25, MCB Bank Rs 2.00 and DS Industries Rs 1.95. In minus column, Pakistan Industrial and Engro Chemical Rs 1.90 each, DG Khan Cement Rs 1.50, Attock Refinery Rs 1.35 and Lucky Cement Rs 1.20. Fauji Fertiliser and OGDC were the volume leaders with 2.968 million shares and 1.263 million shares, respectively.
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