The increasing political uncertainty kept the equities range-bound during the week ending on March 14 on the Lahore Stock Exchange. Despite depressed sentiment because of confrontation between the government and the Pakistan Muslim League (N) over the disqualification of Sharif brothers and Governor rule in Punjab, institutional buying helped the market avert declines.
The LSE index marginally slid down from 1707.36 to 1702.84, depicting a decline of 4.52 points while lack of interest on the part of investors reduced the transaction volume to 38.033 million shares. The United Banks profit of Rs 14.1 billion could not attract the investors and resulted in low trading activity. Of four trading days because of public holiday on account of Eid Milad-un-Nabi on Tuesday, the market witnessed downtrend on Monday, Wednesday and Friday but institutional support helped the market show upward move on Thursday.
In consequence of disqualification of Nawaz and Shahbaz Sharifs, imposition of Governor rule in Punjab, and the long march and sit-in planned for March 16, the situation in the country deteriorated each passing day while arrest of political activists and lawyers also made the situation more panicky.
On Monday, the market opened on a negative note and lost 26.49 points with volume 6.430 million shares. Small investor stayed away from the market that resulted in sluggish trend. Investors kept on awaiting good news with regard to reconciliation between the government and the Sharif brothers.
On Wednesday, the index declined by 31.55 points but the turnover marginally increased to 7.716 million shares because of selling pressure in PSO, Attock Refinery, Pak Oilfields, Pakistan Refinery, PPL, OGDC, Fauji Fertiliser, Engro Chemical, Fauji Fertiliser Bin Qasim MCB Bank, Allied Bank, National Bank and Bank Alfalah remained under pressure. However, Shell Pakistan, United Bank, NIB Bank, Adamjee Insurance, and Nishat Chunian could managed their closure in green zone.
On Thursday, there was no change in the sentiment but the institutional buying in select shares led the market up by 63.43 points, showing an increase of 3.84 percent. Not only the index but the shares volume also improved to 12.818 million. According to analysts, it was institutional buying which provided support. However, "buying on dip and sell on strength" continued throughout the day, as the institutions also kept on opting profit taking.
On Friday, mixed sentiment were observed and equities showed up and down move throughout the day. Buying by institutions, particularly in the state-owned companies, helped market sustainability so as to face minimum declines. The index closed with loss of 9.91 points with declining volume of 11.069 million shares.
Analysts were of the view that when the market would resume trading on Monday, March 16, things might change positively following efforts made by foreign diplomats and local forces. If the political situation improved, the market might witness bullish rallies, they added.
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