The LSE-25 index gained 113.41 points or 2.89 percent to finish at 4,024.37 points as against 3,910.96 of the previous closing session. Overall turnover improved to 51.186 million shares from 45.962 million, depicting a rise of 5.224 million shares or 11.36 percent.
There was a wild upward movement when trading resumed in the morning after a day's break. The market was closed on Tuesday on account of 27th of Ramazan. Helped by the reports that Etisalat may not back out from the PTCL deal, bulls continued hold over the proceedings during the entire session, with hectic buying activity in banking stocks and Adamjee Insurance, brokers reported.
On the other side, gas sector received massive losses, following declining prices of oil in the international market, they added. According to stock analysts, fundamentals of banking sector, which are very positive because of their encouraging results, provided strength to the market otherwise it could have undergone heavy falls, as there was still confusion over PTCL deal.
According to Ahmed Nabeel, head of operations, Invest & Finance Securities Ltd there is still confusion in the market over PTCL deal and the news coming from UAE are not good. However, despite this fact, big players did not allow the market to go down on the basis of speculation that Etisalat had not ended the PTCL deal, he added. As the game was in hands of big players, therefore, they were in position to dictate the market, he pointed out.
"As far as my knowledge is concerned, Etisalat has ended the PTCL deal." Even if fresh talks between Pakistan government and Etisalat make some headway, the latter will seek more advantages and concessions from the former to honour the deal, he said. If the government compromises on this issue, it will affect its credibility, he viewed.
PTCL deal will have a definite impact on all the privatisation shares in future, therefore, the market whose sentiment is bullish on the back of good earnings of banks, petroleum sector and cements might undergo pressure after Eid, he pointed out. So far positions are in big hands, thus the market may show bullish signs after Eid, but soon it will turn depressed, he stated.
"I foresee the market will remain bearish in November and December and may regain strength in January when the December closing results of corporate sector will start pouring in.," he said. Now all banks have announced their results and oil prices in the international market are also on the decline, thus both the sectors are expected to stay depressed in November and December.
Similarly, earthquake after effects will also have a negative impact on economic growth, though the government has rejected this possibility. These factors suggest that the market may not show any significant movement till end of the year, Ahmed Nabeel viewed.
Out of a total of 81 traded scrips, 35 improved in worth, 7 landed in minus zone while 39 were intact to their previous levels. Among major gainers, Adamjee Insurance was up Rs 5.25, National Bank Rs 3.95, MCB Bank Rs 3.30, Nishat Mills Rs 2.50 and Engro Chemical Rs 2.05.
In minus zone, PSO was up Rs 4.20, Sui Northern Rs 1.20, Dewan Farooq Motors Rs 1.15, Pakistan Industrial Credit and PPL Rs 0.10 each. Bank of Punjab and Fauji Fertiliser were the volume leaders, with 8.451 million shares and 7.993 million shares, respectively.