The assassination of Benazir Bhutto sent shock waves in the share market, which received massive battering during last week ended on January 5, losing more than 40 percent amid little improvement in trade turnover.
The week started with mourning of Benazir and all prime chips opened at their lower locks and this state of affairs continued through the session. The subsequent two sessions were also very disappointing as there was no let-up in the bearish trend, with most of the prime chips reaching their lower cap limits.
Analysts said first three sessions were very shocking in which the LSE-25 Index lost 531.58 points. Later, in the last two days, the market staged a smart recovery as heavyweights came in for buying at attractive levels, helping the index recover 333.46 points.
However, final statistics showed that overall the market suffered 4.36 percent loss during the week to finish at 4,545.71 points compared with previous 4,743.83 points. Volume, however, showed some improvement, to 31.102 million shares from 26.237 million, increasing by 4.726 million shares (18 percent).
The market crashed on the first day and LSE-25 Index suffered a loss of 239.43 points (5.04) to finish at 4,504.40 as against 4,743.83 points. Volume was marked at 6.685 million shares compared with preceding closing of 26.376 million, depicting a fall of 19.690 million shares (75 percent). Analysts termed it a complete dark day where majority of investors stayed aloof while others massively off-loaded, fearing further unrest in the country.
Bearish trend continued on the second day and equities recorded losses across the board on account of heavy selling pressure. The LSE-25 Index, with a loss of 158 points, retreated to 4,346.30 from 4,504.40 points. Turnover, however, increased to 30.501 million from 24.251 million shares.
There was no change in the trend on third day and the market underwent a loss of 3.08 percent amid panic caused by rumours about resignation of President Musharraf and military take-over. The LSE-25 Index closed at 4,212.25 points compared with previous closing at 4,346.30, registering a decline of 134.05 points (3.08 percent). Turnover, however, again improved, to 30.501 million shares from 24.251 million, depicting an increase of 6.250 million shares (26 percent).
On the third day, the market took a technical turn in upward direction. In initial trading, the market moved in upward direction, but failed to sustain.
On Thursday, share prices rebounded on fresh buying ending three days' losing streak. The bull-run prevailed till close. The LSE-25 Index with a remarkable recovery of 212.55 points closed at 4,424.80 compared with 4,212.25 points. However, turnover squeezed to 22.834 million shares from 30.501 million, showing a fall of 7.666 million shares.
Led by oil & gas sector and banks, the market moved up sharply pleasing investors, who were expecting a depressed sentiment following postponement of the general elections. PSO and MCB Bank outshined with hefty gains while Mari Gas Company and Dandot Cement led the losing shares.
Bulls continued their grip over the driving seat on Friday, last trading day of the week, with the index gaining another 2.73 percent. The LSE-25 Index gained 120.91 points to 4,545.71 from 4,424.80 points. Volume surged to 31.102 million shares from 22.834 million, registering an increment of 8.267 million shares. Banks and oil & gas sector outperformed, under the lead of MCB Bank and JOVC.
According to analysts, the market showed a remarkable performance during last two sessions of the week, recovering a sizeable chunk of losses received earlier in three days. The bullish mood of the market was also indicative of foreign buyers' renewed interest which might further increase provided all remained well on the political front.
A broker said the market could turn volatile as the uncertainty was not yet over. Thus, people have been advised not to cross their limits. They should prefer day-to-day trading and avoid going for long positions in view of the volatile behaviour of the market, he added.
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