Share values depicted high volatility on Lahore Stock Exchange (LSE) on Monday, however, late buying, particularly in petroleum stocks and banks, helped the index gain 36.42 points, amid a visible rise in volume of transactions.
The LSE-25 index closed at 4,028.48 points as against 3,992.06 of the previous closing session, registering a net improvement of 36.42 points. Overall turnover mounted to 55.547 million shares from 44.193 million, posting a rise of 11.354 million shares.
The market commenced trading with a healthy note and buying in petroleum and banking shares provided strength to the index and it picked up. At one stage in early hours, the market was up around 100 points but later started weakening as people indulged in profit-taking. At mid-session, equities moved both ways and the trend was unpredictable that forced investors to go for profit-taking, an analyst said. However later on, buying in selective shares helped the market re-gain strength, and it finally ended with a gain of 36.42 points, with gainers thumping losers with a wide margin
Stock analysts said that the erratic movement of the market disturbed small investors and they appeared indecisive in dealings. In view of last week's disaster, majority of people were expecting a smart recovery today, and off course, it took place in early hours, but subsequent profit-selling caused disappointment among them, a broker said. He, however, pointed out that on account of today's positive closing, chances for a positive trend were there in the upcoming session. PSO and National Bank were the prime gainers of the day while Pioneer Cement and Kot Addu Power Company were the major sufferers.
According to Dr Shahid Zia, head of research, Switch Securities Ltd, there was a see saw situation in the market and its tone remained highly volatile and predictable. In last minutes, buying emerged in petroleum and banks but no body had much chance to earn because of volatile behaviour of the market, he pointed out. About last week's widespread falls, he said it seemed some big players had manipulated the market to bring it down to pick stocks of their choice at desired levels. Moreover, he said that there were reports of tussle between some big players having huge positions in OGDC and BoP. This tussle between these parties seems to be a prime factor for the persisting pressure and volatility in the market, he pointed out.
Out of a total of 69 traded scrips, 34 improved their worth, 8 landed in minus zone while 27 were intact to their previous levels. Among major gainers, PSO was up Rs 20.95, National Bank Rs 12.40, PPL Rs 12. 35, UBL Rs 6.90 and MCB Bank Rs 6.35. In negative column, Pioneer Cement shed Rs 0.45, Kot Addu Power Company Rs 0.35, Zeal Pak Cement Rs 0.30, Southern Electric Power Rs 0.20 and Worldcall Communications Rs 0.15. National Bank and Bank of Punjab led the market by volume with 11.586 million shares and 9.009 million shares, respectively.