Trading on the Lahore Stock Exchange (LSE) remained very thin amid lacking interest from the investors because of political grounds, interest rate increase by the State Bank and overall recession in the Asian markets following worries over a global slump, during the past week.
According to stock analysts, investors lost interest in the market due to multiple reasons, mainly on account of the prevailing political uncertainty, foreign investment outflow and mounting international pressure on Pakistan with regard to safety of its nuclear assets.
The State Bank's monetary policy announced by its governor on Thursday added to the worries of investors and forced them to continue with their wait-and-see policy, they added. The LSE-25 Index moved up marginally by 23.31 points (0.52 percent) to reach 4,457.04 from 4,433.73 points. Volume squeezed to 14.079 million shares from 36.794 million, decreasing by 23 million shares (62 percent).
Brokers said overall activity during the week under review remained very low with ready market volume shrinking drastically. On last day of the week, the ready market recorded lowest volumes since September 21, 2007, brokers said.
There was slow activity on the first day of the week under review while turnover declined, since investors appeared nervous following widespread fall in the international markets, during the preceding week. The LSE-25 Index showed a fractional decrease of 4.66 points to recede to 4,429.07 from 4,433.73 points. Turnover fell to 22.360 million shares from 36.794 million of the preceding session, depicting a loss of 14.433 million shares. Dullness prevailed throughout the day due to indifferent attitude of investors, who preferred to stay at distance because of political unrest and more importantly on account of worries over a global recession.
Oil sector, including refineries and some banking stocks, remained volatile. The LSE showed positive signs with equities showing across the board gains amid ascending volume on the second day. The LSE-25 Index was up by 31.08 points to 4,460.15 from 4,429.07 points while turnover surged to 25.842 million shares. Stocks were range-bound Wednesday while losers thumped gainers with a visible margin amid further decline in volume.
The LSE-25 Index came down to 4,451.69 points from 4,460.15, showing a marginal decline of 8.46 points. Volume decreased to 23.276 million shares from 25.842 million, registering a fall of 2.565 million shares. The market moved in a narrow range, amid lack of interest from the main players that resulted in low volumes.
Most of the key scrips in banking and oil and gas sector stayed subdued and painted a dull picture. MCB Bank and First Capital Equities were the major gainers while Dawood Hercules and Pakistan Refinery led the losers column.
There was no change in the sentiment on the second last day, with the equities continuing painting a dull picture. The LSE-25 Index gained marginally by 5.62 points to 4,457.31 from 4,451.69 points. Turnover fell down to 16.968 million shares from 23.276 million shares. Share prices stayed depressed on the Lahore Stock Exchange (LSE) on last trading day of the week while volumes further lowered, which raised investors' worries about its future outlook. The sentiment was also unchanged on the last day of the week under review and the market continued depicting a sluggish outlook.
The LSE-25 Index finished at 4,457.04 points versus past day's 4,457.31, showing a fractional decline of 0.27 points. Volume decreased to 14.079 million shares from 16.968 million. All pivotal scrips, including key banks, oil marketing and exploration sectors, were depressed while Pak Suzuki Motors Company and Engro Chemical retreated. At the closing bell, losers were far ahead of the gainers.
Market gurus viewed the stocks were more disturbed by country's political factors rather than fears of a global recession, adding that with improvement in the political scene, the market will turn to its normal course.
According to them, except technical corrections, they did not see any change in the sentiment before the elections and since then it is expected to portray a range-bound picture with short bubbles on technical grounds. However, they advised investors to adopt a careful approach as the market could turn highly volatile in the coming weeks in view of the approaching general elections.
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