With no significant impact of PSO's quarterly earnings, share values turned mixed on the Lahore Stock Exchange (LSE), where the index registered only a marginal improvement, but the volume increased significantly. The LSE-25 index rose to 2721.49 points from 2715.66 of last Friday, showing a slight increase of 5.83 points, while the volume was nearly double of the previous closing level, soaring to 48.914 million shares from 25.701 million shares, registering an increase of 23.213 million shares.
There was a sharp upward movement in early trading with fabulous buying interest in PSO, MCB, Fauji Fertiliser, and the cement stocks that encouraged investors, stock analysts said.
The PSO led the gainers on announcement of its good earnings for September closing. They, however, pointed out that in last minutes the profit-taking emerged that affected the sentiment, saving the activity in fuel & energy, banks, and cement resisted bears, and managed to keep them away from the arena enabling the index to make a positive finish, though with a reduced gain.
Brokers said the market people had got information about the results of the company, therefore, majority of big players ignored the formal announcement of results that was made on Monday.
Dr Shahid Zia, head of research, Switch Securities Ltd, said there was brisk activity in first half of the session, but the profit-taking emerged in last minutes that brought a bad impact on the market.
He said whenever the market comes near to its previous high level of 5508 points, the profit-taking generally emerges, adding on Monday, the KSE index after touching 5,502-point level, started declining due to the profit-selling.
He said the market may not change its direction unless it breaches the psychological level of 5,508 points.
He, however, pointed out just breaching this level is not suffice, the market should consolidate itself at this level.
Dr Shahid Zia also said the overall situation is healthy, and there are good future prospects of the market, adding that fuel, energy stocks, banks and cement may be the prime motivating factors due to their good results and pay-outs, but increasing oil prices in the international market is a disturbing factor that will have a negative impact on the economy.
So far the government has maintained the price level in the domestic market by providing subsidy, but its impact will be seen on the national economy sooner or later, he said, adding this will also surely hit the market sentiment too.
There were 18 gainers against 26 losers with 53 staying unchanged of a total of 97 scrips changed hands.
In the positive column, PSO gained Re 1.00, MCB 75 paisa, Fauji Fertiliser 70 paisa, Pakland Cement 60 paisa, and DG Khan Cement 50 paisa.
Among major losers, Pakistan Industrial Credit shed Rs 1.90, Engro Chemical Rs 1.25, Adamjee Insurance 85 paisa, PPL 70 paisa, and Hub Power 40 paisa.
OGDC took the lead by volume with 2.838 million shares followed by DG Khan Cement with 2.786 million shares.