LSE registers gains across board

Because of institutional support coupled with investors' cash-based transactions, the equities on the Lahore Stock Exchange registered gains across the board amid ascending transaction volume during the last week that was comprised of only three days due to two holidays on account of Ashura.
The LSE-25 moved up to 1655.41 against the previous week closing of 1479.28. As such, the index gained 175.13 points as compared to previous week loss of 246.29 points. Similarly, the trading volume also jumped from 29.811 million shares to 48.969 million shares during the week under review.
The oil sector shares including OGDC, PPL, Attock Refinery, Pak Oil Fields, besides the energy sector helped market maintain bullish trend during the week under review. However, cement and some banking shares remained under pressure.
On first trading day, the market resumed business on a positive sign and kept on moving in the green zone throughout the day. The investors, in anticipation of rapid appreciation in the share values, placed buying orders that resulted in opening of most of the scrips at their upper caps. The experts attributed the Market Opportunity Fund amounting to Rs 20 billion for encouraging investors to return on buying course. The institutional buying from EOBI, National Investment Trust, State Life Insurance Corporation played key role in providing support to the market at this crucial stage. The institutions' buying was seen in fundamentally strong companies, particularly the state-owned companies like OGDC, PPL, Fauji Fertiliser Company, Attock Refinery, Pak Oil Field and National Bank.
The investors' interest remained intact for the second day-Tuesday and the equities continued upward slide. The experts accounted the oil sector for further improvement of 73.46 points in the index. However, the turnover of shares marginally reduced while the cement and insurance sectors remained under pressure.
The analysts were of the view that problem-creating factors/issues have almost been settled now that also encouraged the investors to return back to the buying course. The major step taken by the authorities concerned was the constitution of CFS Mark-II system that brought the market out of the crisis. They also opined that the most of the scrips were still under value and likely to improve by 30-40 percent within next couple of weeks.
The market, after two holidays on Wednesday and Thursday, opened on a healthy note on Friday but could not sustain following selling pressure. The investors preferred profit taking and thus offloaded their holdings to secure their positions. The experts were already expecting a technical correction because the market had witnessed continued bullish trend. They also considered the correction as a good omen for the market future.
Despite profit taking, the buying in selective shares on dip helped further improvement in index by 53.60 points to close at 1655.41. The investors' interest in the fundamentally strong shares is still intact and market could further witness more bullish rallies in near future, the experts said.
The positive sentiments are likely to prevail in January and February because the December ending year financial results of the companies would provide support to the market.