Stock market review

The Lahore share market maintained the bullish trend and added another gain of 2.68 percent to its worth during the outgoing week, on the back of positive valuation reports of foreign and local brokerage houses on certain sectors.
The market kept picking up during the week under review with little change in the volume. Banks, cements and fertilisers and to somehow petroleum sector remained in the fore front, adding substantially to their worth. There, however, was a slight decline in overall volume, which implied general investors still lacked interest and were awaiting improvement in law and order problems and settling down the issue of Chief Justice of Pakistan, stock analysts said.
According to them, the lacking volume was still a disturbing factor and indicating no public interest in the market. The LSE-25 index gained 118 points (2.68 percent) surging to 4,515.96 from previous week's closing at 4,397.96 points. Volume declined to 31.684 million shares from 37.722 million shares. The market took turn on the basis of the SECP move not to take further action against the brokers for their alleged involvement in March 2005 crisis but despite that there was hardly any improvement in turnover.
Trade activity remained range-bound on first day of the week under review, as the market players adopted a cautious approach following rumours regarding changes in national political scene. The LSE-25 index ended with a nominal gain of 6.87 points, closing at 4,404.83 compared with previous 4,397.96 points. Volume also slightly moved up to 38.003 million shares from 37.722 million shares of the preceding session.
All key petroleum shares depreciated in value on account of drop in crude oil prices in the international market. Bullish trend prevailed on the second day where equities registered gains under the lead of cements, oil and energy sectors, which received fresh buying. The LSE-25 index gained 33.61 points to 4,438.44 from 4,404.83 points. Turnover declined slightly to 37.458 million shares from 38.003 million.
Supported by fertilisers, banks and selective petroleum scrips, share prices maintained the rising posture on Wednesday, with the index closing with a fresh gain of 1.18 percent. The LSE-25 index closed at 4,491.10 points compared with 4,438.44, incrementing by 52.66 points. Overall volume mounted to 42.450 million shares from 37.458 million of the past session, depicting a surge of 4.991 million shares.
Share values moved in a narrow range on second last day while interest in banks and cements kept the sentiment bullish, however, on account of late pressure the market ended fractionally lower. The LSE-25 index closed at 4,478.69 points as opposed to 4,491.10, showing a slight decline of 12.41 points. Volume receded to 40.555 million shares from 40.450 million of the past session, decreasing by 1.894 million shares.
The market opening was bullish with a lot of interest in cements and banks, but in second half of the session, selling pressure, particularly in cement sector, dragged it in red zone. There was also no considerable movement in oil sector, however, banks actively supported the cement sector which limited the late session falls caused by selling pressure in the latter. Engro Chemical and MCB Bank dominated the entire day's proceedings while PSO and National Bank were the major losers.
The share market also maintained the rising tempo on last trading day of the week and the index crossed 4,500 level, with banking stocks performing very well on reports of NIT meeting. The LSE-25 index gained 37.27 points to finish at 4,515.96 compared with 4,478.69 points of Thursday. Turnover, however, retreated to 31.684 million shares from 40.555 million, showing a decline of 8.870 million shares.
During the last two weeks, the market has gained 6.27 percent and is 300 points behind the new historical high, an analyst from a leading brokerage house said. It has0 made heady way in terms of index, volume and capitalisation and sentiment seems bullish ahead, he added.
The market movement mainly based on valuation reports of foreign as well as local brokerage houses, which played a key role in boosting the sentiment in the week under consideration, he pointed out. On 8th April, a local house revised upward the valuation of Lucy Cement and DG Khan Cement while on 9th and 10th April local brokerage houses made upward valuation of Askari Bank and Packages, respectively. On 11th April J. P Morgan released positive reports on NBP, MCB, BoP and OGDCL.
These reports forecast 25 percent rise in MCB, 33 percent in BoP besides making good predictions about NBP and OGDC. Due such reports the price of these shares rose by 7-8 percent, he added. Moreover on 12th April, Merry Lynch released a report, 'Investors Radar Scanner,' which predicted Pak GDP at 7.5 percent, he concluded.