Trading during the week under review began with a positive note and fresh buying in index-based shares helped bulls demonstrate strength in the following sessions. However, on last trading day of the week, the market underwent battering, due mainly to suicide attack on a commando base in NWFP that reportedly claimed 20 lives.
Analysts said despite upward movement, trading remained volatile due to clashing political news. JOVC, Arif Habib Securities, cements, insurance sector, oil refineries and exploration sector dominated the trading and improved their values significantly. The LSE-25 index ascended by 146.21 points (3.39 percent) to reach 4,446.57 from 4,300.36 points. The turnover soared from 21.363 million shares to 25.843 million, posting a rise of 4.48 million shares (21 percent). According to analysts, the market moved in upward direction with increasing volumes, but the turnover was still far below the required level.
Share values soared on Monday while the benchmark index registered 1.8 percent surge, amid a highly volatile trading following political uncertainty on return of former prime minister Nawaz Sharif. The LSE-25 finished at 4,380.61 points as compared to its last closing at 4,300.36, incrementing by 80.25 points. Volume was slightly changed to 23.410 million shares from 21.363 million, improving by 2.047 million shares. The market made a weak start on the news of arrival of former premier Nawaz Sharif and reports that the government might send him to jail, the people off-loaded, fearing further unrest in the country. However, it took a sharp turnaround when local TV channels aired the news that he had been forcefully sent back to Saudi Arabia. In second half of the session, the market improved across the board with MCB Bank and Javed Omer Vohra & Co taking the lead.
Equities turned mixed on second day of the week under review and finally settled in positive zone with slight increase in volume following fresh buying in selective shares. The LSE-25 index fractionally moved up by 9.48 points to 4,390.09 from 4380.61 points whereas volume soared to 24.746 million shares from 23.410 million shares.
The market maintained the rising tempo on the third day amid fresh buying from the investors, who placed new orders taking advantage of the attractive prices. The LSE-25 index, with a net gain of 74.03 points, ended at 4,464.12 compared with 4,390.09. Volume improved to 26.898 million shares from 24.746 million shares. Javed Omer Vohra & Co led the proceedings followed by Attock Refinery while MyBank and First Investment Modaraba were the prime declining stocks.
Share prices moved up again on the fourth day, but the market behaved roughly, following volatile political situation in the country. The market kicked off with an upbeat note, but later turned volatile amid a rapidly changing political situation in the country. The LSE-25 index ended at 4,493.54 points as against 4,464.12, registering an increase of 29.42 points. Volume mounted to 33.895 million shares from 26.898 million, increasing by 6.997 million shares. In last minutes, recovery took place that paved the way for a positive closing of the market. Exploration companies led the proceedings while PSO and JOVC topped the declining stocks.
Share values underwent losses on last day of the trading week under review, as investors reacted in the negative to the suicide attack on a military camp, and offloaded massively. The LSE-25 index lost 46.97 points to finish the week at 4,446.57 compared with 4,493.54 points. Volume reached 25.843 million shares from 33.895 million, showing a fall of 8.052 million shares. All key scrips, including exploration companies, major banks, insurance sector, cements and fertilisers remained under pressure, losing their worth significantly.
The market was likely to continue showing a volatile behaviour in the coming week and perhaps in the subsequent sessions too, on account of uncertain political situation, which had scared away the investors and forced them to adopt a wait-and-see policy, analysts said. Confusion prevails over the possibility of reaching a political deal by the government and the PPP, they added.
The government was claiming talks with the PPP are advancing while, according to the latter, both sides had failed to remove differences over certain issues. Moreover, the PPP chairperson's announcement to return home on 18th October has given a new turn to country's politics, they stated. Under such an uncertain situation, which is changing with every passing moment, investors are not willing to enter the market, hence a dull trading activity is expected to take place in the near future, they viewed.