The LSE-25 index closed at 3959.83 points as compared to 3903.69 of Wednesday, registering a net gain of 56.14 points or 1.43 percent. Volume mounted to 58.944 million shares from 43.794 million of the previous session, depicting an increment of 15.149 million shares.
There was not much confidence when trading resumed in the morning and the market showed high volatility, as it was the day for futures settlement. In early hours, selling pressure dominated the market, as people in anticipation of a possible eventuality during the process of futures settlement took to profit-taking, brokers said. However, when settlement took place smoothly, the market was back on track, they added. After the settlement, the index sharply moved upward gaining up to 126 points at one stage. However, in last minutes pressure re-emerged after people offloaded, as there was no news about the PTCL take-over, which is scheduled for 28th.
Moreover, it was the short week, as the market will remain closed on last Friday of the holy month of Ramazan. So people preferred off-loading than holding positions for the next week, which caused pressure and the index shed a part of gains. Bulk of activity was seen in petroleum and banking stocks and PSO and NBP were the star performer in their respective factors, while PPL and MCB were the other prominent gainers. Fauji Fertilisers and PICIC Growth Fund delivering well a day earlier on back of their results were the top losers.
According to Javed Iqbal, chief executive of Javed Iqbal Securities Ltd, the market remained under immense pressure because of apprehensions regarding the futures settlement. This was a prime concerning factors and responsible for recent disastrous equity falls.
On Thursday, the settlement was done smoothly therefore, pressure built up because of this factor started lightening gradually and the index moved up by over 100 points, he pointed out. But, he maintained, in last minutes profit taking took place partly due to absence of any positive or negative news about PTCL take-over, and partly because of weekend pressure. He, however, said that according to reports, Etisalat management is going to hold a press conference in Dubai on Friday over this issue. As far as future of the market is concerned there is no threat to it and after the futures settlement the chances for an eventuality are non-existent, he observed.
Out of a total of 75 traded scrips, 29 bagged gains, 10 landed in minus column, while 36 remained unchanged. Major gainers were PSO, which improved by Rs 7.00, National Bank Rs 6.05, PPL Rs 5.70, MCB Bank Rs 5.35 and Bank of Punjab Rs 5.15. In negative zone, Fauji Fertiliser lost Rs 3.90, PICIC Growth Fund Rs 1.65, UBL Rs 1.50, Pakistan Oilfields Rs 1.50 and PTCL Rs 1.15. PTCL led the market by volume with 13.468 million shares followed by Bank of Punjab with 11.119 million shares.