The local share market gained 8.64 percent following an unusual and rather unexpected rally in exploration companies' shares and key banking stocks, amid phenomenal rise in overall transactions' turnover during the last week ended Thursday.
The market made a weak opening on the first day of the week under review, but subsequently, maintained buoyancy with bulls, mostly charged by interest from the key players, holding sway, stock analysts said. They said the volume also significantly improved because of local players' interest after a long time. Local buyers, who have been on the sidelines for long, joined the Eid rally, which unexpectedly continued till end of the week.
The LSE-25 index ended at 5031.21 points compared with preceding week's 4631.07 points, registering 400.14 points. Volume surged to 38.236 million shares from 23.090 million, rising by 15.146 million shares or 65.59 percent. Although it was four-day trading week, the LSE index recorded a remarkable gain of 400 points, which pleased everyone and raised people's hopes for better future of the market.
On first day of the week under review, the market depicted dullness with activity remaining very low for lack of interest, resulting in an unusual decline in volume of transactions. The LSE-25 index was marginally down by 3.50 points to 4627.57 points from 4631.07 points. Overall turnover squeezed to 13.798 million shares from 23.090 million shares, registering a drastic fall of 23.090 million shares.
The market remained range-bound throughout the session while volume further declined, as people adopted an indifferent attitude because of the short weekend. The week had only four trading sessions on account of last Friday of Ramazan. Moreover, a number of big shares such as PPL, Nishat Mills, Sui Northern, etc were spot, due to which activity squeezed.
Bullish trend prevailed on the second day on Tuesday, as equities registered gains amid ascending transaction volume on account of investors and institutional interest in the banking and oil sector. The LSE-25 index increased by 142.30 points closing at 4769.87 points against 4627.57 points while trading turnover increased to 28.667 million shares as compared to 13.798 million shares.
OGDC, PPL, Pakistan Oilfields and PSO from the oil sector and National Bank, MCB Bank, Askari Commercial Bank, and United Bank helped substantial gain in the index while Bank Alfalah, Picic, and Union Bank remained under pressure.
The bull-run continued persisting in the third day (Wednesday) with the index gaining another 2.83 percent following buyers' interest, notably in the exploration sector. The LSE-25 index ended at 4909.28 points as against 4769.87 points, registering a net gain of 139.41 points or 2.83 percent. Turnover swelled to 46.065 million shares from previous 28.667 million shares, showing an increment of 17.397 million shares or 38 percent.
The market made a strong opening and showed upturn with immense interest in the petroleum sector and selective banks, which aided the already bullish sentiment. Brokers termed it an 'Eid rally' which, they said, was possible due to sudden interest from local buyers, which persisted for the whole day with oil sector again taking the lead.
Pakistan Oilfields was the main stimulating force followed by PPL and National Bank while UBL emerged as the top loser. Share prices also maintained the upward tempo on last day of the week under review, where the benchmark index crossed 5000 points mark, ending with 2.48 percent fresh gain.
The market remained in upward mood while the LSE-25 index reached 5031.21 points compared with 4909.28 points of the preceding session, showing a net gain of 121.93 points. Volume, however, depicted downward tendency retreating to 38.236 million shares from previous day's 46.065 million, showing a fall of 7.829 million shares. OGDC topped the gainers list followed by National Bank while Pakistan Oil fields and PSO were the key sufferers.
The most significant aspect of the week's trading was that both the KSE and the LSE crossed the psychological barriers of 11,000 and 5000, respectively, an analyst said. Except the first day of the week the market traded quite unexpectedly, as no one was expecting such a sustained rally, which helped the LSE index gain almost 400 points in just three days, he added.
Seeing past week's performance of the market enabling the index to easily breach 5000 level, the people are cheerful and hopeful about the post-Eid trading scenario, another broker said. He, however, showed concern over low volume, saying despite improvement in it during the last week, it was far below the desired mark.
He urged the government to withdraw CVT, which was the actual factor for decrease in volume. According to him, this move will increase turnover, which in turn, will improve the government revenue many more times it is collecting under the head of CVT.