Mixed trend on LSE

The share market painted a mixed picture and finally ended up marginally since investors awaited the formation of new government and the announcement of the Prime Minister's package for the next 100 days after winning the unanimous vote of confidence from the National Assembly, during the outgoing week.
The week under review began with a negative note but brokers said that the sentiment was positive and index decline was because of a number of shares' shift from spot to ex-positions. Falls, therefore, were due to technical reasons rather any other factor, they added.
The market sentiment, however, remained weak on the next day as investors appeared least interested in going for fresh positions before the oath taking of the Prime Minister. In the subsequent sessions, the market again showed positive sentiments amid hopes of positive political developments ahead.
At the close of the week under review, the LSE-25 Index ended with a gain of 17.23 points to 4,750.11 from earlier 4,732.88. Volume declined to 19.379 million shares from 24.810 million, declining by 5.437 million shares. Although the market showed weakness in initial sessions of the week yet falls were limited and there was also hardly any major shift in the sentiment.
Share prices depicted a mixed trend on first day of the week under review, however, overall sentiment was positive following investors' positive thinking about the future political set-up. The LSE-25 Index, with a loss of 33.33 points, finished at 4,709.55 compared with 4,732.88 points.
Trade turnover fractionally improved to 25.303 million shares from 24.810 million shares. The market made a good start on positive news from the political front and buying was seen in many chips, but finally the index ended with a negative sign. The KSE index moved up significantly while LSE ended with loss because of most of the index-based s scrips' coming out of their spot positions.
Equities again moved both ways on the second day and eventually settled in red zone amid ascending volume due to lack of institutional support. The LSE-25 Index plunged by 41.80 points to 4,667.75 from 4709.55 points while volume shrank to 17.332 million from 25.303 million shares.
Share prices recovered on the third day and finally ended with an optimistic note, gaining 0.6 percent. The LSE-25 Index finished at 4,695.89 points versus 4,667.75, registering an increase of 28.14 points.
Volume was registered at 15.679 million shares compared with past day's 17.332 million shares. The bounce was mainly supported by reduction in cash margins for CFS Mark-II and increase in the CFS cap limit. Pakistan Oilfields topped the major gainers' column while First Capital Equities led losers.
Stocks extended the gains and finished 1.05 percent higher on Thursday, as local buyers thronged the market, despite outflow of SCRA. The LSE-25 Index, with a net gain of 49.46 points, reached 4,745.35, compared with 4,695.89 points. Volume improved to 18.929 million shares from 15.679 million, registering an increment of 3.250 million shares.
Helped by the insurance sector, banks, securities stocks and exploration sector, the market traded higher with Adamjee Insurance and MCB Bank being the first choice of investors. The main support came from the local institutions, who opted for new entries, particularly in oil & energy, key banks and insurance sector. The emerging political scene was supportive to the market and oath taking of the new Prime Minister and his order to release judges boosted investors' confidence and encouraged them to take bold decisions.
The market remained volatile, but finally ended with a positive note on last trading day of the week because investors held positions till the next week. The LSE-25 Index finished the session at 4,750.11 points compared with 4,745.35, ending with a marginal gain of 4.76 points.
Volume slightly surged to 19.379 million shares from 18.929 million shares. Oil distribution sector and securities stocks led the proceedings while cements rose on reports of increase in the prices following its rising demand.
"I think the political and economic measures announced by Prime Minister Yousuf Raza Gilani after winning the trust vote on Saturday last will boost the sentiment and we might see its the impact during the next week," a top broker said, adding this will further build investors confidence.
He said because of these positive developments, at least short-term picture of the market seems good while long-term outlook will depend on the how the government meets its promises to provide economic and financial relief to the nation.
Eyes are also on the issue of judiciary and how the Gilani-led government tackles, it will also impact the market in the days to come, he viewed. If everything remains smooth, the market will certainly continue moving forward and showing strength, he added.