Share prices underwent roller-coaster movement last week on Lahore Stock Exchange (LSE) following unrest caused by political rumours and law and order situation, but strong buying interest in select chips helped the market manage 2.45 percent gain.
The market opened the week on an upbeat note with oil and gas sector and banks remaining in the spotlight. However, rumours about possible change in the political set-up of the country turned the market highly volatile. Rumours coming from the federal capital and uncertainty resulting from fresh wave of suicide bomb explosions, particularly the targeted attacks on law enforcing agencies, gripped the entire market during whole week.
Bad law and order situation also triggered panic among the foreign funds and they took to offloading heavily, which was also evident from the SCRAs figures, which showed downward fluctuation.
On the second day, the LSE index went down as the statement of the United States saying it could launch attack on Pakistan's territory marred business activity in the market.
In the following three sessions of the week, the market kept swinging amid rumours pertaining to resignation of Prime Minister Shaukat Aziz and deteriorating law and order problem.
Despite the uncertain state of affairs and erratic movement of the market, the LSE-25 index gained 115.03 points reaching 4,793.14 mark from 4,678.11. Turnover, however, declined to 26.017 million shares from 30.671 million shares. Oil and gas sector, key banks, insurance, cements and fertiliser sectors appeared as the prime gainers, adding handsomely to their worth. Statistics released by the LSE showed that during the week under review, Mari Gas Company gained Rs 31, National Bank 21.20, MCB Bank Rs 18.00, Honda Atlas Bank Rs 16.25, National Refinery Rs 15.15. Major losers were Javed Omer Vohra & Company, which shed Rs 30.00, Shell Gas LPG Rs 7.00, PPL Rs 6.40, Crescent Textile Rs 5.25, Pakistan Tobacco Rs 4.05.
Stock experts said they hardly saw any tangible change in the market behaviour till the political uncertainty persists. However, under the given situation, investors were advised to be very careful in their deals and it would be better to remain on the sidelines for the time being, they said.
As far as fundamentals of the market are concerned, they were very strong whereas investors were also very upbeat about the corporate sector results, analysts said. But, the persisting political uncertainty forced investors to adopt and wait and watch policy.
Market players were also weighing the media reports about Musharraf-Benazir meetings and a possible deal between the two sides. If the 'deal' finalised, it would end the political rumours and possibly lead to smooth holding of the general elections in the country, they viewed. If the process of elections is over without any disturbance, the KSE index would be moving towards new high records and even and it will not be surprising if it touches 18,000 mark after the settlement of issue regarding presidential election, they opined.
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