There was range-bound activity on local bourse, where equities painted a mixed picture and mostly remained directionless, due to Karachi's Nishtar Park tragic incident, however, the index finished the last week with a bullish note, gaining almost one-percent.
Because of short week comprising only three days, all main players remained on sideline resulting in low activity, stockbrokers said. The market was closed for two days on Tuesday on account of Eid-e-Milad-un-Nabi (SAW) and on Wednesday to mourn the loss of precious lives as result of Karachi incident in which over 50 people died and several injured.
The investors were scared to go for fresh entries following the Karachi incident and afterward countrywide strike, which led to range-bound activity during the week under review.
Analysts, however, said that the market base was strong and except investors' apprehensions about the law and order problem, there was no other negative factor, thus activity was likely to improve in the coming week.
The LSE-25 index mounted to 5739.56 points from 5684.92, registering gain of 0.96 percent. Volume retreated to 63.182 million shares from 76.515 million shares, showing a fall of 13.333 million or 17.42 percent. Sunni Tehrik, after the assurance of the federal and Sindh governments, has withdrawn its ultimatum, which is a positive development from the market point of view and will boost the confidence of people, an analyst said.
On first day of the week under review, share values depicted an inconsistent movement while late session profit-taking resulted in pruning, forcing the index to shed a major chunk of early hours' gains. The LSE-25 index closed at 5707.75 points as against 5684.92 of the preceding session, showing a gain of 22.83 points.
Volume lowered to 69.648 million shares from 76.515 million, registering a decline of 6.867 million shares. The market took a good start and due to buying activity in oil & gas sector, the index went up by 80-90 points in early hours of trading. Later in the day, profit-selling in oil and gas shares caused pressure in the market. However, banks and cements continued strengthening its position, with Union Bank closing with its upper caps.
The sentiment was positive, but investors did not take chance for holding positions till Wednesday because of public holiday on Tuesday, on account of Eid Milad-un-Nabi (SAW). United Bank, MCB Bank and Adamjee Insurance topped gainers column, while prominent losers were Pakistan Oilfields and PPL.
Activity remained slow on Lahore Stock Exchange (LSE) when the market re-opened on Thursday following investors' worries over law and order problem, in the wake of Karachi incident, however, the index mostly moved in plus column and finally finished with a nominal gain. The LSE-25 index closed at 5713.72 points versus 5707.75 of the previous session, posting a fractional gain of 5.97 points. Overall transactions volume retreated to 67.207 million shares from 69.648 million shares, registering a decline of 2.440 million shares. The market depicted positive signs when trading resumed after a two days' break, but activity was slow mainly due to Nishtar park carnage. This perception among the market people led to slow trading, eventually resulting in reduction in turnover.
The market moved both ways on last trading day of the week under review; however, buying in petroleum shares and banks during the second session helped the index gain strength. The LSE-25 index finished at 5739.56 points as opposed to 5713.72 of the previous session, registering an improvement of 25.84 points. Volume, however, was on the lower side and at close of trading was registered at 63.182 million shares in comparison to 67.207 million of the preceding session, showing a fall of 4.024 million shares.
The market was depressed in early hours because of countrywide protest call of MMA and investors were reluctant to move ahead fearing law and order problem. However, in second session, buying in petroleum shares and bank and some cements brought a positive impact on the sentiment. Pakistan Oilfields was the top gainer of the day followed by PPL and National Bank while MCB and UBL were the worst-hit bye selling pressure. "I think the impact of the Karachi blast will be short-lived and the market could get normalised in the week ahead," an analyst said, adding, "in spite of negative news, the market remained stable which implies its base is very strong and it will soon be on track, and most probably in the upcoming week."
According to some analysts, Wednesday's closure of the market was a wise decision of the management of the bourses to save the market from a possible disaster. Apparently, bourses were closed to mourn the death of the Karachi incident victims, but as a matter of fact, big players knew well the possible impact of the Karachi blast on the equity market, they viewed.