LSE stays range-bound

Dullness prevailed in the Lahore share market where equities stayed range-bound on account of investors' alienated attitude since they awaited completion of the election process during the past week.
The start of the week under review was pleasant, but subsequently the market turned range-bound following the lack of support from the stalwarts. More or less the major sectors, including oil and gas and banks, stayed depressed.
Overall activity remained low during the short trading week, which consisted of only three days. The market was closed on December 25 on account of birth anniversary of Quaid-e-Azam (RA) and then on December 28 because of assassination of PPP Chairperson Benazir Bhutto. Overall during the three-session week, the LSE-25 Index was marginally up and gained 9 points to 4,743.83 from 4,734.93 points. Trade turnover declined to 26.376 million shares from 36.610 million, depicting a fall of 10.24 million shares.
A bullish trend prevailed on first day of the week with equities gaining under the lead of prime chips, while volume shrank considerably. The LSE-25 Index gained 48.18 points reaching 4,783.11 from 4,734.93 points. Turnover squeezed to 34.102 million shares from 36.610 million shares.
The market was closed on Tuesday on account of public holiday declared by the government on the occasion of the Quaid-e-Azam Day and the Christmas. There was a range-bound activity on Wednesday while the index showed downward tendency with the losers overtaking the advancing stocks. The LSE-25 Index closed at 4,757.74 points compared with 4,783.11, registering a fall of 25.37 points.
Volume decreased to 28.165 million shares from 34.102 million, ending with a decline of 5.936 million shares. The market opened with a pleasant note, but soon fell victim to pressure because of lack of support from the major sectors. Most of trading activity was limited to some small banks and some other second-tier shares while key stocks, including banks and oil & gas sector were depressed.
Allied Bank and Habib Metropolitan Bank were prominent advancing stocks while Mari Gas Company and National Refinery led the top losers. Thursday was the last day of the trading week and the year under review and equities appeared jittery since majority of investors stayed on sidelines avoiding risks ahead of the general elections.
There was not much change in overnight pattern of the market and it mostly remained range-bound. The LSE-25 Index declined marginally, losing 13.91 points retreating to 4,743.83 from 4,757.74 points. Turnover slipped back to 26.376 million shares from 28.165 million, showing a fall of 1.789 million shares. The market moved in a tight band because people preferred holding positions, which led to low volumes. Crescent Steel and Bank Al Habib led the gainers while Shakarganj Mills and Adamjee Insurance were top losing stocks.
The market remained closed on Friday due to law and order problem in the city following the tragic assassination of PPP Chairperson Benazir Bhutto. The decision was taken at the KSE late Thursday night after the approval of the Securities & Exchange Commission of Pakistan authorities.
"As the news of the death of Benazir Bhutto came after the close, we will see its impact on the market when it re-opens on Monday," an analyst said. The SECP has tried to minimise the losses by keeping the market closed on Friday, but experts still foresee drastic falls ahead, he added.
Although the government has not changed the schedule of the elections yet there is strong likelihood of postponement of the same, another analyst said. Nawaz Sharif has already announced to boycott the polls and if the PPP leadership also joins him, the government will have no other option but to put off the elections, which will be a shocking development for the local as well as foreign investors, he maintained. In view of this uncertainty, the people are advised to stay at distance and wait what the government decides about the election schedule, he viewed.