The Lahore share market stayed mixed on Monday, and after undergoing short intra-day corrections, finally settled in the positive zone with the index reaching its highest mark after March 2005.
The LSE-25 index reached 4,511.62 points versus 4,476.25 of the previous closing session, posting a net rise of 35.77 points or 0.79 percent. Volume ascended to 84.116 million shares from 69.404 million, registering an improvement of 14.707 million or 21.19 percent.
There was a roller-coaster movement in the market on first day of the week, where stocks showed high volatility and witnessed frequent up and down fluctuations, brokers said. However, the underlying sentiment remained bullish and, on account of interest in Nishat Mills, Allied Bank and fertilisers, the index picked up subsequently and finally ended with a gain, they added.
Analysts said that the market was a bit slow because key players were now awaiting the outcome of President's on going efforts to arrive at a consensus on the issue of Kalabagh Dam.
This factor has also overshadowed the positive impact of foreign investment in the capital market, for the time being. The most significant feature of day's trading was that closing point of the LSE-25 index was the highest after March this year, the analysts pointed out.
Javed Iqbal, chief executive of Javed Iqbal Securities Ltd said that the market observed intra-day corrections during the past week, which helped it consolidate itself and made it more strong and stable. Today the market also landed in negative column more than one time and at one point the index was down by 50 points, he said.
But, he maintained, later in the day it recovered and finally finished with a bullish note. "I understand that the market is standing on very sound footing and, if their there is no negative change in the existing state of affairs, the KSE index might touch 10,000 by end of this month."
There are various factors, which are supporting the market sentiment, especially the foreign investment, which is pouring in the capital market these days, Javed Iqbal observed. Foreign investment is coming from Kuwait, Dubai, UK and other countries, which has turned the market very attractive, he viewed.
Similarly, the issue of appointment of chairmen of bourses is almost over now, and there is strong anticipation that the government could announce construction of Kalabagh Dam shortly. If this announcement is made, interest in entire cement sector will further increase, he pointed out.
Likewise, after completion of extension of Fauji Fertiliser Bin Qasim, the fertilisers sector will also turn more attractive for investors, he opined. "I believe Fauji Fertiliser Bin Qasim is a safe investment for long-term investors." Out of a total of 99 traded scrips, 27 improved their worth, 21 stayed weak while 51 were intact to their previous closing levels.
Amongst the most attractive scrips, Nishat Mills gained, Rs 2.45, Allied Bank Rs and Fauji Fertiliser Rs 2.10 each, Pakistan Oilfields Rs 1.80 and PSO Rs 1.50. In minus zone, MCB Bank and Pioneer Cement shed Rs 2.50 each, Adamjee Insurance Rs 2.30, Kapco Rs 1.95 and Faysal Bank Rs 1.50.