Equities moved both the ways on the Lahore Stock Exchange (LSE) on Tuesday but finally settled in the green zone following aggressive buying in the oil exploration companies. The LSE-25 index improved by 28.88 points and closed at 4407.92 points against 4379.04 points of Monday while trading volume increased to 21.033 million shares as compared to 17.866 million shares traded a day earlier.
The market opened on a healthy note but could not sustain and started declining. However, fresh buying helped market recovery and afterward it remained in green zone throughout the day's trading. The oil sector performed well while Mian Mansha's companies including MCB, Adamjee Insurance, and D G Khan Cement provided support to the market.
Oil exploration companies are mainly accounted for keeping the market bullish following revision of pricing policy by the government under which the selling limit of US $50 per barrel of crude oil has been lifted, said Muhammad Ishaq Abbasi of Abbasi and Co, while commenting on the market sentiments.
PPL, Pak Oil Fields and OGDC because of the chance of pricing policy played vital role in keeping the market bullish. The sentiments remained positive in anticipation of positive verdict by the Supreme Court in the petition filed against General Pervez Musharraf.
Apart from the upcoming decision, the news regarding possibility of taking oath by General Pervez Musharraf as president for the next term also encouraged the investors to stay on the buying course, he added.
He was of the view that the institutions have substantial amount of liquidity and fresh entries on their part could take the market upward. However, the market may lose foreign investors' support because they have now get out of the market that could be evident from sharp decline in SCRA figures.
The outflow was mainly due to imposition of emergency in the country, he added. Besides, the prevailing law and order situation in the tribal areas and ongoing war against Taliban in Swat made the investors scared who are reluctant to take positions, Abbasi said. He also said the investors must be conscious while investing in stocks, however, buying on dips and selling on strength could yield good margin to them.
Out of 110 total traded scrips, 37 moved up, 26 retreated while 47 did not change their previous price levels. Among major gainers, Adamjee Insurance surged by Rs 15.50, ICI Pak Rs 9.20, MCB Bank Rs 7.00, UBL Rs 6.00, NBP Rs 3.85 and D.G. Khan Cement Rs 2.00. In minus column, Pakistan Reinsurance shed Rs 4.45, Attock Refinery Rs 3.85, Honda Atlas Cars (Pak) Rs 2.55, Mari Gas Co Rs 2.50 and Luck Cement Rs 0.95.
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