Buying in banking, cement and petroleum shares helped equities maintain rising tempo throughout the week, ended 11th November on Lahore Stock Exchange (LSE), where the index gained 5.44 percent amid a remarkable improvement in volume of transactions.
Bulls kept hold over the market following an aggressive buying interest in banks and cements, which outperformed during the short week under review, brokers said. The market was closed on Wednesday, November 9, on account of Iqbal Day.
According to brokers, SBP directive to banks for enhancing their paid-up capital and increase in cement sales multiplied interest in both the sectors.
Despite doubts and uncertainty over PTCL-Etisalat deal, there was no let-up in buying, which also indicates involvement of general public in the market, analysts said.
The LSE-25 index improved to 4243.64 points from 4024.37, registering a net increment of 219.27 points, during the week under review. Overall volume increased to 85.204 million shares from 51.186 million shares, registering a significant improvement of 34.018 million shares.
On Monday, the first day of the last week, equities registered gains across the board amid ascending transaction volume, mainly because of fresh buying interest on the part of general investors.
The LSE-25 index witnessed a substantial improvement of 149.69 points and closed at 4174.06 against 4024.37, while trading turnover increased to 86.193 million shares as compared to 51.186 million shares. Buying was seen in selective shares of oil, banking and cement sectors, while MCB Bank and Southern Electric Power remained under pressure during the session.
The market, which opened on a healthy note, remained in positive zone during the entire day's trading. According to analysts, State Bank's directions to commercial banks for enhancing their paid-up capital to Rs6 billion generated interest among the investors for banking sector shares.
As a result, Askari Commercial Bank and National Bank of Pakistan moved up and closed in the plus column. Similarly, the cement sector showed surge and fresh buying was seen in D.G. Khan Cement, Lucky Cement, and Maple Leaf Cement.
Equities maintained upward trend on the second consecutive day, under the lead of oil sector on account of fresh buying in fertiliser and chemical sector. The LSE-25 index further improved by 24 points and closed at 4198.06 against 4174.06, while transaction volume marginally declined to 84.776 million shares as compared to 86.193 million shares traded a day earlier.
Share prices continued surging on Thursday, where Pakistan Industrial Credit, PPL, MCB Bank and telecom sector fared better, with almost a steady volume of transactions, amid hopes of some breakthrough in government negotiations with Etisalat regarding PTCL deal.
The LSE-25 index moved up to 4258.60 points from its previous closing of 4198.06, registering a surge of 60.54 points. Volume, however, remained flat and at final count stood at 84.955 million shares, as compared to its preceding session closing at 84.776 million shares. The market opened with a positive tone and petroleum sector, banks, cements and telecommunications received fresh buying, moving the index in upward direction. At the final count, the market was up 1.44 percent with gainers thumping the losers. Pakistan Industrial Credit, PPL and MCB were the most attractive shares of the day, while Pakistan Oilfields and D.G. Khan were the major losers.
Share values remained volatile on the last trading day of the week, amid hopes and fears regarding PTCL-Etisalat deal, and finally ended depressed after observing up and downward fluctuations. The LSE-25 index closed at 4243.64 points as compared to Thursday's 4258.60, registering a decrease of 14.96 points or 0.35 percent.
Overall volume showed a slight improvement mounting to 85.204 million shares from 84.955 million shares of the previous session. The market depicted an erratic movement and in early session, the sentiment stayed mostly depressed, but later the market improved on account of buying in cement and banking sectors with the index gaining strength. According to stock analysts, the tone was highly uncertain as the market people awaited the government announcement for the PTCL deal.
According to stock analysts, though the market is strong and stable as far as its fundamentals are concerned, its future trend mainly depended on the next week's developments, including a press conference by Privatisation Minister Dr Hafeez Shaikh about his negotiations with Etisalat management, Saarc summit being held in Dhaka, UN Secretary General's arrival in Pakistan and international donors' moot on 19th of this month in Islamabad.
They said, in view of increase in sales, especially export sale of cement and good earnings of banks, these two sectors could be a better choice for investment. But, they maintained, due to decline in the prices of oil in the international sector, petroleum sector could remain under pressure in the week starting from Monday (November 14).