LSE stays bullish

Despite the tragic Lal Masjid incident, the share market maintained rising tempo on the Lahore Stock Exchange (LSE), adding 0.61 percent to its value, however, volume came down visibly during the past week.
The week under review began with good trading following aggressive interest in Arif Habib Securities, JOVC, petroleum and cement stocks. But on the following day pressure emerged amid the negative development of Lal Masjid and the market underwent erosions.
According to stock analysts, the impact of the Lal Masjid incident was minimal as the falls as compared to magnitude of the incident were negligible. In the subsequent session, the market stayed range-bound as general investors distanced themselves, fearing a bigger tragedy in the federal capital.
However, over all sentiment was bullish and the LSE-25 index gained 29.91 points during the week to eventually reach 4,879.79 from 4,849.88 points. Volume, however, retreated to 49.205 million shares from 58.309 million shares, depicting a decline of 9.104 million shares.
Share prices staged a sharp rally on the first day, with oil and gas sector, refineries and telecom stocks remaining in the fore, resultantly, the market managed a substantial gain of 1.3 percent. The LSE-25 index surged to 4,913.16 points from 4,849.88, depicting an improvement of 63.28 points. Turnover also showed an upward movement and finally, ended at 61.902 million shares compared with 58.309 million, increasing by 3.593 million shares.
Besides the oil and gas sector and banks, the cement also performed well in view of its rising demand and increase in its profitability. Shell Pakistan was the most active scrip followed by Attock Refinery while UBL and Bank Alfalah led the losers' column.
The news regarding launch of operation on Lal Masjid turned the market bearish, and the equities registered declines across the board, on second day of the week. The LSE-25 index lost 53.50 points, closing at 4,858.82 against 4,912.32. Volume declined to 56.631 million shares as compared to 61.902 million shares traded a day earlier.
Arif Habib Securities, Picic Commercial Bank, Attock Refinery, and Nishat Mills provided support to the market, but selling pressure in JOVC and Adamjee Insurance led the market to red zone.
The market took a turn on the third day and registered fresh gains, under the lead of Pakistan Oilfields and JOVC. The LSE-25 index ended at 4,883.27 points compared with 4,860.36, registering an increase of 22.91 points. Volume declined to 47.569 million shares from 56.631 million shares, decreasing by 9.062 million shares. Pakistan Oilfields dominated the trading followed by JOVC, while MCB while banks stayed in minus column.
Equities depicted a volatile behaviour on the second last day of the week under review, with the benchmark index ending with a fractional fall, however, volume showed a slight improvement. The LSE-25 index finished at 4,875.90 points as opposed to 4,882.33, registering a slight decrease of 6.43 points. Overall volume improved to 50.764 million shares from 47.569 million, increasing by 3.195 million shares.
The market showed a volatile movement as equities kept moving both sides throughout the day. Arif Habib Securities and JOVC closed on upper cap limits, while Adamjee Insurance and MCB Bank led the losers side.
Equities stayed range-bound on last trading day of the week, however, the sentiment continued to be bullish following buying interest in side items. The LSE-25 index ended at 4,879.79 points as compared to 4,875.74, registering a nominal increase of 4.05 points. Volume slightly receded to 49.205 million shares from 50.764 million, depicting a fall of 1.559 million shares.
The market was in a positive mood in the morning and during the pre-prayer session, people witnessed a good trading session, but pressure emerged after rumours about attack on President Musharraf's plane hit brokerage houses. However, recovery took place when the concerned authorities contracted the news. JOVC and Arif Habib Securities once again emerged as top gainers.
The way the market ignored Lal Masjid incident and fared well with some of the scrips performing outstandingly in the whole week, it is expected to keep moving up with short corrections, an analyst said.
The market was likely to take a technical turn that is why on first day of Lal Masjid operation it went under pressure but recovered on the very next day, he added.
He said the oil sector performed quite well during the week on surge in prices of oil in the international market, which jumped to $74 from $69 per barrel. There was also no change in the SACRA, which stood stagnant at $975 million, he pointed out. Another significant feature of the week's trading was that the side-items performed remarkably while the index-based shares disappointing investors, he said.