Share prices on the Lahore Stock Exchange (LSE) on Wednesday recovered from Tuesday's losses and finally ended with an optimistic note gaining 28.14 points, or 0.6 percent. However, the volume posted a tiny fall. The LSE-25 Index finished at 4,695.89 points versus 4,667.75, registering an improvement of 28.14 points.
Turnover amounted to 15.679 million shares compared with past day's 17.332 million shares, depicting a fall of 1.653 million shares. The market made a good start with banks and exploration sector remaining centre of attraction. According to analysts, the bounce was mainly supported by reduction in cash margins for CFS Mark-II to be enforced from next month, and increase in the CFS cap limit.
Moreover, a rally in global markets, including the Asian markets, also brought a positive impact over the local stocks, on news of improvement in US economic data, they added. Apart from these reasons, defusing tension about the political situation also boosted the sentiment, they maintained.
Pakistan Oilfields topped the major gainers' column while First Capital Equities led losers' side. Capital Vision Securities Equity Research Head Mirza Muhammad Irfan said the market people responded positively to the Securities and Exchange Commission of Pakistan ((SECP) move to gradually reduce cash margin in the CFS Mark-II system and raise in CFS cap limit from Rs 55 billion to Rs 85 billion.
The existing CFS system will run parallel with Mark-II system, till June 2008, with the current existing cap of Rs 55 billion. He said the recent political developments, particularly the release of judges, had also sent positive signals in the market. He said the issue of their restoration was still a matter of concern for investors.
He said: "If all remains smooth on the political side and the new government announces some big project to address the prevailing energy crisis in the country, the cement sector could spark in the coming days." In all, 112 scrips changed hands, of which 39 improved in worth, 20 landed in minus column while 53 were unchanged.
In positive column, Pakistan Oilfields was up Rs 9.05, Habib Bank Rs 7.40, MCB Bank Rs 6.90, Engro Chemical Rs 3.50 and PPL Rs 3.50. In negative zone, First Capital Equities was down by Rs 4.35, Pak Electron Limited Rs 3.30, Fauji Fertiliser Rs 2.50, Dawood Lawrencepur Rs 1.50 and Atlas Insurance Re 1.00. Lucky Cement was the volume leader with 1.781 million shares, followed by Bank Alfalah Rs 1.660 million shares.
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