With oil and cement sectors remaining in the fore, the share values surged on Lahore Stock Exchange (LSE) on Monday, on reports of increase in crude oil price as well as allocations for big dams in the federal budget. The LSE-25 index soared by 33.77 points to finally stay at 4673.94 as compared to last closing at 4640.17 points.
Turnover improved to 53.495 million shares from 56.883 million of the preceding session, showing an increment of 3.387 million shares. The market opened with an optimistic note and then managed to sustain the trend till the end of the session. Encouraged by anticipation of an increase in the oil prices and rumours that the government was going to set aside amounts for the construction of big dams, both the sectors guided the entire market, experts said.
Moreover rumours of 50 percent cut in the rate of CVT on shares transactions in the budget also played a role in boosting the sentiment, they pointed out. Pakistan State Oil and Pakistan Oilfields, a prominent name in exploration sector, dominated the proceedings while MCB and National Bank were the key losers.
It seems the much-awaited pre-budget rally has started which might extend on the back of anticipation of curtailment in CVT and withholding tax on shares transactions, Umair Butt of Dosslani Securities Ltd said.
If the government curtails CVT by 50 percent, as being anticipated by the players, the participation of small investors and traders will increase, he added. This development, however, will give boost to volume but will have no impact on value of shares, he pointed out.
In case it is done in the budget, the government will also be a beneficiary of it, as its revenue will increase due to growth in turnover, he pointed out. At present, the market is staying on strong footings despite political uncertainty, which is a good sign, he maintained. Certain sectors are now overvalued and that is why are depressed while those, which are still undervalued, are moving up, he pointed out. Out of a total of 141 traded scrips, 49 were up, 17 landed in the minus column while 75 stayed glued to their previous closing levels.
Among major gainers, PSO gained Rs 5.30, Pakistan Oilfields Rs 4.20, DG Khan Cement Rs 4.15, Lucky Cement Rs 3.95 and Allied Bank Rs 2.95. In negative zone, MCB Bank lost Rs 1.25, National Bank and Nishat Mills Rs 1.00 each, Habib Metropolitan Bank Rs 0.70 and ICI Pakistan Rs 0.50. DG Khan Cement was the volume leader with 6.496 million shares followed by Fauji Cement with 5.043 million shares.
Comments
Comments are closed.