Share prices recovered on the Lahore Stock Exchange (LSE) after suffering heavy battering on Wednesday, as investors showed appetite for fresh buying in selective chips.
The LSE-25 index moved up by 54.91 points closing at 3059.12 as against 3004.21 of Wednesday.
The volume also mounted, and registered at 144.163 million shares as compared to last day's 125.343 million shares, posting a rise of 18.819 million shares.
The market commenced trading with its overnight bearish note, and maintained the downward tendency in initial trading hours. But later fresh buying in Adamjee Insurance, Engro Chemical, banking, fuel and energy stocks emerged which dragged the index in the positive zone.
Stock analysts said the market has absorbed the impact of correction surfacing during the last session, and now it is back on path of recovery. Terming the correction a 'blessing in disguise', they said it has pushed the weak-holders out of the market.
Dr Shahid Zia, head of research at Switch Securities Ltd, said initially, the market showed negative vibes, and the index went down by around 100 points, but recovery started on fresh buying in cement, banking and fuel and energy stocks.
At one stage, buying from various sides, including institutions was so aggressive that the management of the exchange had to place upward caps on banking, cement and fuel and energy stocks to prevent them going beyond limits, he added.
About the correction, he said it was due to purely internal factors, as the market was heavily overbought, adding now the market has lightened its weight and weak holders are no more in the market that has paved way for fresh buying. But the risk is still there, as badla rate especially in Lahore is very high, he pointed out.
Friday, which is the weekly last day of trading is very important for the market, he said, adding if the index closes above the level of last Friday, chances for an upward tendency will increase.
Another positive thing is the optimism among investors about the quarterly results of companies, he said, adding if these are in accordance with their aspirations, one can expect positive trend in the coming sessions.
Out of total of 84 traded scrips, 37 were up, nine depicted weak signs, while 38 stayed glued to its overnight positions.
Among key gainers, Adamjee Insurance was up by Rs 6.75, Engro Chemical Rs 5.65, National Bank Rs 4.75, Bank of Punjab Rs 4.35 and PSO Rs 4.25.
Among major losers, Askari Commercial Bank declined by Rs 2.00, Fauji Fertiliser 75 paisa, Lucky Cement 75 paisa, Zeal Pak Cement 45 paisa, and Fauji Cement 40 paisa.
OGDC was the volume leader with 27.144 million shares followed by National Bank with 14.357 million shares.