Activated by buying at attractive levels, the share market witnessed an upsurge of 1.8 percent, however, following uncertain political situation trade activity remained on the lower side, resulting in more than 22 percent decline in turnover, in the past week.
Trade activity was mostly low because the investors confused by the Opposition and the government statements about future political set-up of the country, adopted a cautious approach and preferred taking restricted positions, market experts said. However, oil distribution companies performed well on increasing crude oil prices in the international market, they added.
The cement sector also remained in the limelight on the basis of reports of getting export orders by a cement manufacturer from India. Javed Omer Vohra & Co. and Arif Habib Securities also made advances. Another factor that helped the market build up momentum was the price levels, which attracted locals and foreign investors. Overall, the LSE-25 index recorded a gain of 79.71 points, reaching 4,300.36 as compared to previous 4,220.65 points. Volume, however, lowered to 21.363 million shares from 27.635 million shares.
Equities moved both ways on first day of the week under review, but finally ended with a positive note following fresh buying on part of the local and foreign investors. The LSE-25 index, with a marginal gain of 6.51 points, finished at 4,227.16 as against 4,220.65 points.
Bullish trend prevailed on the second day while the equities registered across the board gains amid improvement in volume due to institutional buying. The LSE-25 index jumped by 75.77 points to close at 4,302.93 against 4,227.16 while turnover grew to 24.186 million shares from 20.162 million shares. MCB Bank, Allied Bank, National Bank, Alfalah Bank, Bank of Punjab, DG Khan Cement, Lucky Cement, Maple Leaf Cement, Pakistan Oilfields and PPL performed well and helped the market maintain upward move throughout the day with Attock Refinery remaining under pressure.
Bulls dominated the proceedings on the third day on account of an aggressive buying interest in banks, fertilizers and oil sector following unconfirmed reports coming from Dubai concerning finalisation of the much-awaited political deal between the government and Benazir Bhutto. The LSE-25 index registered a remarkable gain of 118.63 points to reach 4,421.56 from 4,302.93. Overall volume surged to 33.386 million shares from 24.186 million. National Bank and Engro Chemical were the key gaining stocks while Allied Bank and ICI Pakistan were the main retreating stocks.
Share prices closed easier on Thursday due to profit-selling, which, according to some market experts, was expected after two-three days' bullish spell. The opening of the market was not bad and in initial hours, it showed strength, but lately fell prey to profit-taking surfacing in key chips. After that, it moved both ways, but last minutes' selling pressure forced the index to land in minus zone. The LSE-25 index, with a net decline of 38.70 points, closed at 4,382.86 as compared to 4,421.56 points. Share volume was almost unchanged at 32.797 million shares compared with 33.386 million shares. Profit-taking was seen in all the key shares performing outstandingly during the last few days. MCB Bank and National Bank and key oil sector shares, including PPL and OGDC were the major sufferers
The share values extended the overnight losses on last day of the week under consideration, amid shrinking volumes. The LSE-25 index lost its worth by 82.50 points to 4,300.36 from 4,382.86 points. Volume came down to 21.363 million shares from 32.797 million. The market took an easy start and then came under heavy pressure, which kept mounting throughout the day. Banking sector shares, particularly MCB Bank and National Bank, were the prime victim of pressure while JDW Sugar Mills and Lucky Cement led the advancing stocks.
Analysts said the market was under pressure because of political reasons and the rapidly taking place developments regarding Nawaz Sharif's return and confusion over talks between the government and the PPP had reduced trading activity. Other than the political reasons, there is no other disappointing factor, they said, adding the market sentiment is good and levels are quite attractive for future investment.
As soon as political uncertainty ends and the picture about the future political scenario turns clear, the market will give very good yields to the people investing in dividend-oriented shares, a broker said. But, he pointed out, small investors should avoid making fresh entries and wait till September 15.