LSE remains range-bound

In the absence of any fresh news or rumour, the share market remained range-bound and finally closed the five-session week, ending on Friday March 30, with a loss of one percent amid slight improvement in turnover.
The market moved in a very tight band throughout the week under review, with trade turnover touching new lows, which added to worries of the players. Analysts described the international scenario in the perspective of mounting US pressure on Iran, and Pakistan's internal situation in the wake of a series of incidents like suspension of the Chief Justice of Pakistan, situation in Tank and fresh suicide attack in Kharian military training camp as the key disturbing factors.
Nobody seems ready to go out of safe heavens ahead of April 3, the day for hearing of the presidential reference against the CJ, a broker said. Political parties have also given strike call for that day, therefore, people are set to remain on sidelines till that time, he added.
The LSE-25 index lost 41.46 points to 4,249.31 as opposed to 4,290.77 points, during the preceding week. Volume slightly improved to 15.207 million from 14.069 million shares. The market sentiment stayed bearish on first trading day of the week because of political uncertainty as well as some internal factors the market faced in terms of lack of interest following issuance of notices to brokers for March 2005 crisis. The LSE-25 index shed 32.63 points to close at 4,258.14 as compared to 4,290.77 points. Turnover was registered at 13.274 million shares as against 14.069 million shares.
SECP move to issue fresh notices to brokers and latter's resolve to move the court, coupled with ARD call for countrywide protests forced investors to stay on sidelines. NBP and MCB Bank underwent pressure while oil sector and cements performed better. Bullish sentiments prevailed on the second day under the lead of oil sector on account of increase in the prices of crude oil in the international market.
The LSE-25 index gained 13.77 points closing at 4,271.91 against 4258.14 while turnover increased to 17.287 million shares from 13.274 million shares. Trade volume further lowered touching month's lowest on account of lacking interest from day traders and investors, on the third day. The market extended the losses and the LSE-index finished at 4,229.08 points versus 4,271.91. Volume declined to 11.943 million shares from 17.287 million shares.
There was again range-bound activity on the fourth day, while volume stayed much below the desired level, indicating no change in indifferent attitude of key players. The LSE-25 index was fractionally down by 9.87 points, closing at 4,219.21 as compared with 4,229.08 of the previous day. Volume moved up to 17.034 million shares from 11.943 million shares.
The market showed a volatile movement and, after undergoing a widespread downward fluctuation, recovered in second half of the session on buying in selective chips. Till mid-session, the index was down by 100 points, but in last minutes recovery took place on the back of growing interest in some banks and oil sector shares, which helped the index recover most of early losses.
Javed Omer Vohra and National Bank added to their worth while PSO and Pakistan Oilfields were the key scrips losers. Equities picked up strength and moved upwards on the last trading day of the week, led by fresh buying interest in oil sector, key banks, cements and partially fertilisers.
The LSE-25 index gained 30.10 points, closing at 4,249.31 versus 4,219.21 points. Volume was a bit lower reflecting lacking interest. It was registered at 15.207 million shares compared with 17.034 million of the preceding session.
The market ignored the news of oil touching its high of the current year reaching $68 bpd and Scra $662 million and failed to make any visible headway during the entire week, an analyst said. However, he added that some spark was seen in selective chips such as OGDC, PPL and POL which helped the players avert disaster.
Fresh sanctions on Iran deteriorating the already tense situation in the region as well as growing worries regarding the political uncertainty caused by the government's move, has led to the market instability.
But despite all that, cement sector continued showing strength on growing demand and increase in its price in the neighbouring countries as well as stability in the indigenous market ranging between Rs 225 to Rs 230 per bag, he pointed out.
Commenting on the fertiliser sector, he said that the rising demand of DAP and increase in its price which rose to Rs 1,450 per bag provided support to fertilisers, notably FFBL.
According to him, technically the market is range-bound and trading between the levels of 11,200 and 11,400. Closing above 11,400 and below 11,200 may give a new turn to the market. At present, the market PE is 9.77 and the existing levels are charming which may turn further attractive for buying in the near future, he concluded.