Share prices moved randomly on the Lahore Stock Exchange (LSE) during the past week, as confusion over the issue of OGDC's GDS, enforcement of new risk management measures and to somehow MMA legislators resignations kept investors at distance, however, buying in petroleum sector helped the market finish the week with 1.64 percent gain.
The start of the week was slow and activity was range-bound because people awaited the outcome of new risk management measures enforced from December 4 as well as response of the OGDC's GDS at the London Stock Exchange (LSE). However, later the market turned mixed as the oil sector rebounded on fresh buying, but it failed to determine a clear direction in the remaining sessions.
According to stock analysts, there was no visible improvement in volume, due to absence of day-to-day traders. After the imposition of CVT on share transactions, small investors and trader has left the market, therefore, volume has decreased drastically, they added. Overall the LSE-25 index improved by 70.69 points (1.64 percent) to 4365.48 from 4294.79 points. Volume slightly improved to 26.735 million shares from 23.009 million shares, surging by 3.726 million shares, during the week under review.
Share prices were mixed with range-bound activity on first day of the week under review, as people awaited the ramification of the new risk management measures enforced from December 4. The LSE-25 index went down marginally by 0.96 points to 4,293.83 from 4,294.79. Volume was down to 17.719 million shares from 23.009 million, showing a decline of 5.290 million shares.
The market moved ahead in the morning, with key support from cements and petroleum sector, but in late trading hours, the outlook turned flimsy as people continued to be sidelined, seeing the outcome of the new risk management measures. Volume, which was already very low, further came down, indicating potential investors' indifferent attitude towards trading. Pakistan Oilfields and Lucky Cement were the key gainers while MCB Bank and Adamjee Insurance shed heavily.
Equities rebounded on the second day following aggressive buying in exploration and oil distribution companies scrips, which outperformed, while the index gained 1.87 percent. The LSE-25 index gained 80.55 points to 4,374.38 as compared to 4,293.83. Volume improved to 24.915 million shares from 17.719 million, increasing by 7.196 million shares. The market opened with a bullish note and subsequently moved in positive zone throughout the session, helping the index to gain strength gradually. Bull-run prevailed on the third day, with banking sector performing extremely well following fresh buying. The LSE-25 index ended at 4,441.76 points as opposed to 4,374.38, registering a net increase of 67.38 points. Turnover also significantly improved to 45.264 million shares from 24.915 million, soaring by 20.349 million shares. MCB Bank and UBL were the top gainers while Pakistan Industrial Credit and Callmate Telips Telecom received losses.
Share prices moved both ways on the second last day and finally ended in minus column following profit-taking in second half of the session. The LSE-25 index lost 25.43 points to 4,416.33 from 4,441.76. Overall turnover declined to 35.231 million shares from 45.264 million, registering a fall of 10.033 million shares.
Responding to the start of OGDCL trading on the London Stock Exchange, the market made a strong opening and people witnessed good trading, particularly in first half of the session. Attock Refinery and Javed Omer Vohra improved their worth while PSO and Pakistan Oilfields underwent losses. Selling pressure, notably in banking sector, kept the market in minus zone, while the index finished below 4,300 points level, receiving a net loss of 1.15 percent, on Friday. The LSE-25 index closed at 4,365.48 points as compared to 4,416.33, registering a fall of 50.85 points. Volume came down to 26.735 million shares from 35.231 million, declining by 8.495 million shares. The market came under pressure at the outset of the trading on account of main players' reluctance to take risk on the weekend. Arif Habib Securities and PSO were the key gainers while National Bank and MCB Bank were the top losers.
OGDCL's GDS reportedly received a positive response and fetched $18.90 on the London bourse on the first day of its trading, which is a significant development and will have a very positive impact on the entire exploration sector, analysts said. Another positive factor is the likely arrival of a foreign fund in the local market. According to reports its interest in oil sector is immense, they pointed out. On the back of this hope the oil sector performed very well during the week under review, and scored fresh gains.
During the week under review OGDCL gained Rs 2.05, PPL Rs 2.55 and PSO Rs 3.65 while in the banking sector, which remained depressed, National Bank shed Rs 6.00 and MCB Bank Rs 9.00.
Market experts seem to be very optimistic about the oil sector and say it still have room of improvement in future.