Activity on last trading day of the week was low and finally ended with an easy note on local share market, which stayed directionless, mainly because of lacking support from the potential investors.
The LSE-25 index ended at 4,476.25 points as compared to 4,485.39 of Thursday, registering a marginal fall of 9.14 points. Volume declined to 69.404 million shares from 91.214 million of the previous session, showing a decrease of 21.810 million shares.
There was volatile activity in the market, which disturbed investors due to no clear direction of the market. According to brokers, the market widely fluctuated up and down, but because of support from the oil sector, it turned up subsequently and thus finished with a marginal loss.
Since the market failed to determine its direction, majority of the players went for profit taking, resulting in weak closing of the market, a broker said. The market is in overbought position, therefore, until and unless a wide-ranging correction emerges, it is unlikely to take a clear turn, he added. Kapco and PPL were the key gainers of the day, while ICI and MCB Bank were the major losers.
The market thrashed small investors and traders by its rough behaviour on the weekend, said Ahmed Nabeel, head of operations, Invest & Finance Securities Ltd, adding at one stage, it touched the peak of 9,493 with a gain of 75 points, but last 30 minutes proved fatal that brought the market down by 9 points. On Friday, the market was saved by oil sector, which was on the upside due to rise in oil prices in the international market, he added. He further said that despite SECP issue of non-broker chairmen of bourses, government-opposition cold war, budget deficit, high interest rate, liquidity crunch, high inflation, new rules of futures trading, effective from January next, the KSE index is moving positively towards 10,000 level. But people should also keep in mind that correction is overdue and they should wait for dip to enter fresh buying, he said.
According to Ahmed Nabeel, key reason for the overall upward sentiment is foreign investment, which is pouring in with regular intervals. July to November 2005 volume of foreign investment was 255 million dollars and as on December 07, 2005 it stands at 278 million dollars, he pointed out. Similarly, good growth, presence of foreign funds, arrival of new mutual funds, privatisation in pipeline and prospects of new dams etc, are other supporting factors, having a healthy impact on the market. But still one should wait for the dip and buy cements, banks and fertilisers to enjoy the expected future rallies that could lead the KSE-100 index to 13,000-14,000 by March next year, he viewed.
Overall 99 scrips changed hands, of which 18 improved their worth, 35 landed in minus zone, while 46 stayed to their previous levels. Among major gainers, Kapco improved by Rs 2.40, PPL Rs 1.20, Engro Chemical Rs 1.10, DS Industries Re 1.00 and Allied Bank Rs 0.50. In negative column, ICI Pakistan was down by Rs 4.50, MCB bank Rs 2.30, National Bank and Adamjee Insurance Rs 2.25 each, and DG Khan Cement Rs 2.00.