LSE remains bullish

Pushed by buying interest in cements, fertilisers, JOVC, Arif Habib Securities, key banks and insurance sector, the share market moved forward and ended the outgoing week with a net gain of 2.21 percent, with also a tangible improvement in volume, depicting a considerable surge of 34 percent.
The week under review started with a buoyant note and then, backed by interest in selective chip, the trend continued persisting. The market also remained in grip of various rumours concerning political situation, dissolution of the assemblies, but its impact was negligible on the sentiment, brokers said. Reports of floating of GDRs of United Bank and Lucky Cement also lured investors to take interest in these scrips.
Moreover, SCRA figure increased showing growing interest of the foreign buyers in the market. SCRA figure during the week under review surged to 978 million dollars from 928 million dollars. According to some analysts, financial institutions and banks built up portfolios to show higher June closings and that was one of the reasons for the upsurge.
The most important feature of the week was the highest ever-closing level of KSE at 13,7246. The LSE-25 index during the week under consideration improved by 105.19 points (2.21 pc), reaching 4,849.99 as compared to 4,744.80. Turnover increased to 58.309 million shares from 43.482 million, marking a surge of 14.827 million shares (34 percent).
The share market moved up on first day of the week under review on the back of strong buying interest in Adamjee Insurance, JOVC and Arif Habib Securities Ltd, resultantly the index surged by 0.61 percent. The LSE-25 index ended at 4,773.98 points compared with 4,744.80. Volume declined to 40.923 million shares from 43.482 million. Charged by hectic buying in insurance sector, Javed Omer Vohra & Co and Arif Habib Securities, the market moved in positive zone.
However, volume remained on the lower side, depicting general investors' disinterest. Banking sector, including MCB Bank, UBL and Bank of Punjab, also performed well while oil sector showed a mixed performance. Mixed trend prevailed on second day with equities moving in a narrow range.
The LSE-25 index improved by 8.32 points, closing at 4,786.11 against 4,777.79 points. Volume increased to 52.287 million shares as compared to 40.923 million. Lucky Cement and Maple Leaf Cement from the cement sector, NIB Bank, Bank Alfalah and National Bank from the banking sector, provided support to the market while DG Khan Cement, PSO, Pak Oil Field, Attock Refinery were depressed. Share prices depicted an upward movement on Wednesday, following buying interest in oil and gas sector, refineries, Javed Omer Vohra & Co, and cements while volume also showed firmness. The LSE-25 index improved by 34.86 points to close at 4,823.65 as compared to 4,788.79. Overall turnover totalled 52.338 million shares as against 52.287 million shares.
The market moved both ways on second last day of the week, but following interest in selective chips, especially in Mansha Group companies' shares, finally ended with a bullish note. Disturbed by various rumours coming from the political front, the market failed to take a single direction and moved in a zig-zag way. The LSE-25 index reached 4,840.25 points versus 4,823.65 of the past day.
There was, however, a reasonable improvement of 11.736 million shares in volume, which at close of the market stood at 64.074 million compared with 52.338 million of the preceding session. Buying interest was seen only in selective chips while broader market was almost stagnant. Adamjee Insurance and Javed Omer Vohra & Co topped gainers column while PSO and Pakistan Oil Fields came out as the prime declining stocks. The share market witnessed a see-saw situation on last trading day of the week but remained firmer on account of interest in JOVC, fertilisers, cements and partially in banks.
The LSE-25 index, with a marginal improvement of 5.72 points, finished at 4,849.99 as compared to previous 4,844.27 points. Volume retreated to 58.309 million shares from 64.074 million, registering a decline of 5.764 million shares. Javed Omer Vohra & Co and Engro Chemical were the top gainers while Pakistan Oilfields and National Bank led the declining stocks.
According to some analysts, bullishness is expected to continue and the market might rush towards new peaks on the ground of soaring interest of foreign buyers, float of new GDRs, rising demand of cement and fertilisers. However, according to some experts, this surge is cosmetic and the market may plunge into another crisis.
For them, at present, only big players and some institutional buyers are in the run while general investor is totally indifferent, fearing yet another crisis. "Barring a few scrips which are undervalued, I don't see any countable advancement in rest of the market," an expert said. As far as foreign funds' investment is concerned, their interest is restricted to some particular scrips, especially banks, he added. Reports of delay in PSO bidding is another negative factor causing disappointment among the investors, he opined.