Depressed sentiment on LSE

Sentiment stayed depressed on the Lahore share market during the preceding week, as people took to profit-taking in most of key shares, thumping the week-long winning streak which stated after general elections.
The week under review commenced with a bearish note since majority of people went for profit-taking. However, buying in selective chips averted the chances of widespread falls. Despite overall depressed sentiment, buying interest remained intact in oil sector, banks and fertilisers that helped the market avoid massive battering.
Analysts said the market saluted the victory of moderates in February 18 elections and made hefty gains, therefore, the people opted for profit-taking. However, due to corporate results season, falls were limited.
The LSE-25 Index was down by only 87 points or 1.76 percent to close the week at 4,841.66 compared with previous closing at 4,928.56 points. Volume declined to 28.799 million shares from 34.124 million, depicting a decrease of 5.325 million shares or 15.6 percent. Brokers said the delay in formation of new political set-up was also a matter of concern, thus majority of investors were still at distance with their wait-and-see approach.
Share prices remained volatile with a comparatively low trading, amid a roller-coaster movement on first day of the week under review. Good trading took place in the morning and people witnessed an aggressive buying trend in first half of the session.
In second half, the market took a turn because pressure emerged due to profit-taking. The LSE-25 ended with a slight decline of 5.58 points to finish at 4,922.98 compared with last closing at 4,928.56 points. Turnover declined and was registered at 31.369 million shares as against 34.124 million, sinking by 2.755 million shares. Equities showed a mixed trend on the next day with the oil sector, cements and banks placing the market in green zone.
The LSE-25 Index went up by 23 points to reach 4,945.79 from 4,922.98. Volume decreased to 26.118 million from 31.369 million shares. The market prices scaled down on Wednesday after people once again pocketed profits, on account of rising worries over 'unnecessary delay' in formation of new government.
The LSE-25 Index closed at 4,905.98 points compared with 4,945.79, recording a loss of 39.81 points. Volume surged to 44.777 million shares from 26.118 million, depicting a significant improvement in 18.658 million shares. Refineries, fertiliser sector, securities stocks and selective banks performed well, despite pressure in various key scrips while the broader market was weak.
Share prices stayed firm on the second last day of the week while volume squeezed because investors waited results of some of the big corporate entities. The LSE-25 Index, with a fractional increase of 3.45 points, ended at 4,909.43, as against 4,905.98 points.
Trade turnover declined to 34.426 million shares from 44.777 million, registering a fall of 10.350 million shares. Fertilizers, oil sector, banks and securities stocks appeared much attractive while insurance sector remained under pressure. Equities underwent massive battering on last trading day of the week under consideration, mainly on account of a technical correction, which the brokers said was because of continuous upsurge after the February 18 elections. The LSE-25 Index plunged by 67.77 points to reach 4,841.66 from past day's 4,909 points.
The volume decreased to 28.799 million shares from 34.426 million, registering a fall of 5.627 million shares. Initially, the market showed positive signs, but later pressure emerged in key shares, which led it to downwards. Till close of the first session, the market was under pressure with key equities undergoing heavy losses.
Market experts said that most of the big players were in no mood of buying and awaiting the formation of new government. Since the PPP has yet to decide the name for the future prime minister, the people are confused over the prevailing political uncertainty. The reports that the PPP top brass has dropped the name of Amin Faheem for the premiership have added to the uncertainty and the people are avoiding taking risk, they pointed out.
However, SCRA figure was improving which means foreign funds interest was returning and if the persisting correction continued during the upcoming week, the price level could turn more attractive for them. After the smooth of transfer of power, the people might go for aggressive buying to greet the new elected government, a broker said.