The share market, Lahore Stock Exchange (LSE), remained directionless on Tuesday where equities moved both ways amid descending transaction volume for lack of interest on the part of investors. The LSE-25 index marginally declined by 8.08 points closing at 4536.61 against 4544.69 of Monday.
While trading turnover squeezed to 20.895 million shares as compared to 23.942 million shares traded a day earlier. Javed Omer Vohra & Co, Arif Habib Securities and Picic Growth Fund resisted declines while Lucky Cement, Kot Addu Power Company, PSO, and Pak Oil Filed remained under pressure. The market opened on a mixed note and moved up and down during the day's trading and on every dip, buying was seen in selective scrips.
The experts were of the view that market, which remained volatile almost throughout the day, witnessed intra-day correction, which is good sign for the market future. Investors' interest was seen in securities companies shares like Javed Omer Vohra and Co and Arif Habib Securities.
The financial results of the first quarter of the refineries, including Attock Refinery and National Refinery performed up to the expectation. Attock Refinery is expected to show Rs 12-Rs 13 earning per share, which attracted the investors, said Syed Muhammad Ishaq Abbasi of Abbasi and Company, while commenting on the market sentiments.
Apart from financial results, the rising trend of oil prices, which reached $84 per barrel is also one of the major factors that persistently provides support to the market, he added. He said there was no change in economic fundamentals that could disturb the market sentiments. However, the upcoming change in political scenario could force the investors to stay away from the buying course.
The Supreme Court has yet to give its verdict on the petition filed against holding of two offices by President General Pervez Musharraf. The political situation is so ambiguous that one can not assess the future of the next government, he added.
The APDM members have already decided to tender resignation from the assemblies on September 29, while nomination papers for the presidential election are also under process. The investors are still confused about the political scenario and thus reluctant to take long-term positions, said Abbasi.
He also said the investors should avoid panic selling to avert losses and take a chance on dip in securities companies, refineries and dividend-oriented shares. The declining stocks were ahead of advancing ones as out of a total of 107 active issues, 42 companies registered gains, 55 went down while 10 stayed glued to their previous levels.
Among gainers Adamjee Insurance improved by Rs 14.30, National Refinery gained Rs 8.25, Javed Omer Vohra & Co moved up by Rs 3.60 while Faysal Bank and Honda Atlas Cars were up by Rs 3.25 and Rs 2.50, respectively.
In the minus column, Habib Bank lost Rs 18.40, PSO declined by Rs 3.60, Pak Oil Fields shed Rs 3.50 while MCB Bank and Engro Chemical were down by Rs 2.40 and Rs 2.20, respectively. Arif Habib Securities was the market leader whose 3.029 million shares changed hands followed by Javed Omer Vohra & Co with total trading of 2.757 million shares.