Institutional buying support in select oil and gas stocks, banks, securities and fertilisers helped the Lahore share market show a smart recovery, during the last week with the LSE-25 index gaining 164.85 points, or 3.69 percent.
The market took a bearish start, but recovered during the very next session on the back of institutional support in select blue chips, helping it gain substantially.
Brokers said that in view of constant sluggishness, they were expecting a breakout before the election. However, some termed it a pre-election rally.
Another factor which contributed to the sentiment and encouraged the local investor was the return of foreign buyers. Moreover, corporate sector results also added to the sentiment. An analyst said that political panic and fear had forced local investors to go for selling at available margins while the low levels attracted the foreign buyers. The LSE-25 Index reached 4626.67 points from 4461.82 points.
Another encouraging feature was a significant improvement in volume, which surged to 27.271 million shares from 12.751 million, posting a rise of 14.52 million shares (114 percent).
Share prices drifted lower on first day of the week following mounting worries of investors, amid fears expressed by the opposition parties about credibility of the forthcoming general election. The market remained mostly under pressure with no phenomenal movement in blue chips, which kept the index on the lower side.
The LSE-25 Index ended at 4,450.43 points, compared with previous 4,461.82 points, bearing a loss of 11.39 points. Turnover, however, slightly improved to 15.008 million shares from 12.751 million shares, depicting an increase of 2.751 million shares.
Fertilisers, some banks and partially oil distribution and exploration sector made advances while refineries were hit by selling pressure. Equities registered across the board gains on second day of the week amid growing volumes because of fresh buying from institutions and small investors.
The LSE-25 Index soared by 83.13 points to 4,533.56 from 4450.43 points. Volume improved to 23.838 million from 15.008 million shares. Share prices closed lower but overall gainers were ahead of losers since investors changed gains in selective energy-linked stocks, on the third day.
The LSE-25 Index, with a fractional fall of 7.23 points, finished at 4,526.33 compared with 4,533.56 points. Turnover improved to 29.997 million shares from 23.838 million. The market failed to maintain the overnight momentum, mainly because of big players' losing interest. Shell Gas LPG (PK) and Pak Suzuki emerged as the most attractive chips for buying while Insurance and exploration sector received selling pressure.
Share prices moved up on second last day of the week on account of institutional support, which helped the market record a handsome gain of 75.46 points. At the final count, the LSE-25 Index ended at 4,601.79 points compared with 4,526.33, posting a rise of 75.46 points. Turnover slightly improved to 30.464 million shares from 29.997 million shares. Bulls got control of the driving seat from the very outset and then did not lose grip over it, helped by an overwhelming interest in some key chips.
Brokers also termed it a pre-election rally, which was being awaited since many days by the investors. Share values maintained the rising tempo with the support from the institutions and foreign buying on last trading day of the week under review. The LSE-25 Index, with a fresh rise of 24.88 points, eventually finished the day at 4,626.67 compared with previous closing at 4,601.79 points. Volume decreased to 27.271 million shares from 30.464 million, registering a decline of 3.193 million shares. Oil, energy sectors, banks and fertilisers delivered well and attracted fresh investment
Broker were jubilant over the positive closing at the weekend and said it was a healthy sign, which indicated that the market could gear up and demonstrate strength when it resumes trading after the elections. "All eyes are focused on the election day," an analyst said, adding, "if the election day passed smoothly and without witnessing bloodshed, the market will be moving up non-stop in the post-election scenario." Experts foresee oil and gas sector, banks and fertilisers as the lucrative shares from the investment point of view.
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