Share prices showed mixed trend on Lahore Stock Exchange (LSE) on Wednesday as equities moved both ways but ended with gains on buying in the insurance sector and securities stocks. The market moved unevenly most of time, but buying interest, particularly in insurance sector, provided strength to KSE-25 Index helping it to make a positive closing of 18.40 points.
At the close, the LSE-25 Index reached 4,533.38 points from 4,514.98 points of Tuesday. Turnover improved to 21.012 million shares from past day's 16.802 million, registering an increase of 4.209 million shares. Analysts said the market was highly oversold and people short-covered positions that helped the index finish up.
They said bulk of activity centered on Mansha Group shares like MCB and Adamjee Insurance, which gained handsomely. Pakistan Oilfields and securities stocks also fared better and provided support to the index. The news that candidatures of Nawaz Sharif and Shahbaz Sharif had been challenged in the court caused pressure, but the market digested it shortly.
Analysts said the market people's concerns about political scenario were still there and they were not ready to go for big risks. Similarly, fears of new taxation in the budget also kept investors away from the market. Majority of people believe that the worst is not over. Therefore, innovators need to proceed cautiously, a broker said. Some analysts, however, believe that investment is still pouring into the stocks having potential for further growth, especially in oil and gas sector.
Things were improving with news of foreign buying in select chips, said Pervez Iqbal of Javed Iqbal Securities. He said that the presence of foreign investors was felt, which aided the market sentiment. As far as political situation wass concerned, the PML-N announcement that despite quitting the cabinet it would continue its support to the government was an encouraging sign, he added. In all, 115 scrips changed hands of which 29 were up, 33 declined while prices of 53 were unchanged.
In positive column, EFU General Insurance gained Rs 18.30, Adamjee Insurance Rs 16.55, Pakistan Reinsurance Rs 6.60, MCB Bank Rs 6.45 and Packages Limited Rs 5.85. Major losing stocks were Attock Refinery, which shed Rs 6.40, Indus Motors Rs 4.60, Engro Chemical Rs 4.50, ICI Pakistan Rs 3.80 and Arif Habib Securities Rs 2.90. Arif Habib Securities and Bank Alfalah were the volume leaders with 3.700 million and 3.636 million shares.
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