Helped by local institutions and foreign buyers, bulls held sway on the Lahore Stock Exchange (LSE), where the benchmark index recorded 7.24 percent gain with a remarkable improvement in trade turnover, during the past week.
The bull-run started at the outset of the week under review, and persisted till second last trading day. The investors, sensing a clear win of President Pervez Musharraf in election, continued buying. However, small investor was in a fix and failed to take decision in view of uncertainty over the verdict of the Supreme Court over two identical petitions challenging the eligibility of President Musharraf for the office of the president.
The market welcomed the apex court verdict staying the result of the presidential election, analysts said. With this court decision, the investors anticipated safe arrival of PPP Chairperson Benazir Bhutto and her good working relationship with President Musharraf, another analyst said.
He said this was a significant positive development from the market point of view, which kept the sentiment bullish throughout the week. The LSE-25 index escalated by 331.91 points (7.24 percent) reaching 4,914.39 from 4,582.48 points. Turnover also marvellously surged to 32.469 million shares from 14.335 million, depicting an increment of 18.134 million shares (126 percent).
Fuelled by fresh buying in key scrips, the share market blazed up amid a growing turnover and remarkable improvement of 3.37 percent in the benchmark index on Monday.
After a bullish start, the market moved in positive zone throughout the day with key banks, exploration companies scrips, insurance sector, securities share and selective cements delivering pretty good. The market showed a frenzied movement on the back of renewed interest in all prime shares, which took the LSE-25 index upwards. At close of the market, it was registered at 4,737.26 points compared with its previous closing at 4,582.48, surging by 154.78 points. Volume escalated to 34.893 million shares from 14.335 million, showing an increase of 20.558 million shares.
Bullish trend prevailed with equities recording hefty gains on the second day amid soaring volume following fresh buying from local institutions and foreign buyers. The LSE-25 index, with a gain of 83.76 points, ended at 4,821.02 compared with previous 4,737.26 points. Turnover grew to 44.145 million shares from 34.893 million shares. Share prices maintained the upward thrust on third day of the week following a hectic movement in fertilisers, oil refineries and OGDC in late session enabling the market to bag 1.67 percent gain.
The market landed in negative zone soon after its opening and then failed to take a clear turn on account of rumours coming from the political front and problems relating to CFS. In the second half of the session, the sentiment changed with developing interest in fertilisers, exploration sector and oil refineries. Resultantly, the LSE-25 index, with a net gain of 80.54 points, closed at 4,901.56 as against 4,821.02 points. Turnover declined to 40.169 million shares from Tuesday's 44.145 million shares.
The share market painted a mixed posture on second last day of the week where prices fluctuated up and down on conflicting political news and rumours, which kept the investors in a confused state of mind. The LSE-25 index ended at 4,920.51 points compared with 4901.56, depicting a slight increase of 18.95 points.
Turnover, with a fall of 6.488 million shares, retreated to 33.680 million shares from 40.169 million shares. Lack of interest from investors kept activity on the lower side, however, because of movement in selective chips the index ended with a bullish note. Volatile political situation in the country forced investors, including the institutions, to adopt a very cautious approach.
Share prices moved both ways due to confusion over the decision of the Supreme Court in identical petitions filed by two presidential candidates, challenging the candidature of President Musharraf, on last day of the week under review. The LSE-25 index, with a fractional downward fluctuation of 6.12 points, finished at 4,914.39 compared with 4,920.51 points.
Turnover was slightly down to 32.469 million shares from 33.680 million shares. The market underwent a wide-ranging fluctuation of around over 300 points on conflicting news about the Supreme Court decision. Because of rumours and unconfirmed reports about the Supreme Court judgement, the market failed to take a clear direction and kept moving both ways. The unofficial results showed a clear victory of President Musharraf in the presidential election and the market was expected to welcome and celebrate it in the forthcoming week, an analyst said.
The market people believe that President Musharraf's re-election means there will be major change in the economic policies which, backed by the US, will continue for another five years, he commented. This will also encourage foreign investment in the market and other spheres, he pointed out. The market may remain jittery till October 17 and after taking oath by President Musharraf it will return to its smooth course of trading.
Brokers said the improvement in SCRA showed foreign investor was confident about a better economic outlook of the country. However, people are advised to avoid taking hasty decisions and better to wait for the Supreme Court judgement on October 17, they said.