The share market gained 4.2 percent during last week ending on August 6. However, trading was erratic as investors were uneasy due to confusion over outcome of the meetings between government side and the brokers on the issue of COT and margin financing.
According to stock analysts, the market showed a wild movement on second and third day of the week on hopes of settlement of the outstanding issues between the Securities and Exchange Commission of Pakistan (SECP) and stockbrokers. However, it failed to completely come out of selling pressure, partly due to the SECP-brokers row and partly because of poor performance of PPL, which has recently been added to the LSE-25 index on the basis of its turnover. Overall, the LSE-25 index gained 150.45 points, or 4.29 percent, closing at 3698.36 points from 3547.91. Overall turnover was also significantly up, soaring to 41.868 million shares from 24.707 million of the preceding week, registering a net improvement of 17.161 million shares.
The market was not much active on Monday and share values moved in a very tight band with drastic decline in volumes, reflecting lack of interest from key players. However, the index managed a positive closing, with slight improvement. It finally finished at 3559.16 points from 3547.91 of the previous session, registering a marginal increase of 11.25 points, or 0.3 percent. Overall turnover fell to 11.298 million shares from 24.707 million shares, posting a decrease of 13.409 million shares or 54.27 percent. The market, though remained in a positive zone throughout the day, activity was very low because of lack of interest from heavyweights who stayed at a distance, awaiting some positive development regarding SECP-brokers dispute.
On second day, the market staged a sharp rally in anticipation of a meeting between Shaukat Tarin and Prime Minister Shaukat Aziz on the issue of COT. Aggressive buying in select chips helped the index gain 84.18 points, improving to 3643.34 points from 3559.16 points while volume swelled to 30.576 million shares from 11.298 million shares.
Bull-run continued on the third day, too, and the index showed another surge of 2.04 percent on hopes of acceptance of brokers' recommendations regarding the COT and futures trade. The LSE-25 index moved up 74.66 points closing at 3718.00 points as compared to 3643.34 points while volume was more than double of Tuesday's and was finally marked at 64.553 million shares as against 30.576 million shares, registering an increase of 33.977 million shares.
On Thursday profit-taking emerged in key sectors that put share values under pressure, pushing both index and volume down. The LSE-25 index finally closed at 3689.44 points compared with 3718.00 of Wednesday, posting a decline of 28.56 points. Overall trade turnover went down to 54.090 million shares from 64.519 million of the preceding session, registering a decrease of 10.519 million shares. The market showed weakness because of profit-taking caused by the news regarding release of SECP task force report on stock market crisis. But despite that, banking sector performed well, notably Bank Alfalah touched its upper circuit breaker.
On the last day of the week, the index showed a marginal improvement while volume depicted decrease, denoting lack of interest from prime players who stayed on sidelines following task force report on March crisis. The LSE-25 index closed at 3698.36 points as against 3689.44 points, registering a fractional fall of 8.92 points or 0.24 percent. Volume retreated to 41.868 million shares from 54.098 million shares, registering fall of 12.230 million shares or 22.60 percent.
The market is likely to respond to the positive news of PPL privatisation on Monday and people might witness a good trading session, a broker said. According to news appearing in the national press, the Privatisation Commission has pre-qualified four parties for privatisation of 51 percent stake with management control of PPL. The corporate results might also provide boost to the market during the next week, he added. He, however, advised people to remain in safe havens and avoid over-trading.