Range-bound activity seen on LSE

The Lahore share market was not much responsive to budget announcement and moved both ways amid range-bound activity because of lack of interest from local investors and shrinking foreign buying, during last week ended on June 17.
Market reaction to the budget was monotonous with erratic movement on first day of the week. However, in subsequent two sessions, interest returned to select chips, notably cements, fertilisers, insurance sector and some oil and gas shares, which kept it in the positive zone, stock analysts said. Afterwards, it failed to determine its direction due to political worries, but some analysts said that the shares, which were still under-valued could pave the way for better trading.
Overall, the LSE-25 index was marginally up by 13.85 points to finish at 4,775.54 compared with previous 4761.69 points. Volume lowered to 32.519 million shares from 42.161 million, showing a decline of 9.642 million shares. According to some experts, fertilisers and oil and gas sector had a lot of room for improvement and might lead the market in the days to come.
The market depicted a capricious movement on first day of the week, and after undergoing both-side fluctuations, ended easier with a marginal loss. The LSE-25 index slipped back to 4,746.50 points from 4,761.69, declining by 15.19 points. The volume dropped to 40.314 million shares from 42.161 million, registering a fall of 1.847 million shares.
The market took a positive start in response to what the brokers said 'a market-friendly federal budget', but turned highly volatile later on. Engro Chemical was the top gainer while UBL led the other side. Bullish trend prevailed on the second day when equities registered gains amid ascending transaction volume on account of investors' interest, who made fresh entries in the cement sector.
The LSE-25 index improved by 13.42 points, closing at 4,759.92 against 4,746.50 of the past day. Turnover increased to 49.943 million shares as compared to 40.314 million shares. D.G. Khan Cement, Lucky Cement, Pioneer Cement, Pakistan Cement Company, Fauji Cement, Maple Leaf Cement, Kohat Cement, MCB Bank, Bank of Punjab and Soneri Bank helped market stay in the green zone.
Share values extended the overnight gains and improved by 1.12 percent on the third day, following an overwhelming buying interest in banks, cements and partially in oil gas sector. The LSE-25 index surged by 53.49 points to 4,820.65 from 4,767.16 points. Turnover improved to 59.895 million shares from 49.943 million of the preceding session, depicting an increase of 9.951 million shares.
Share prices retreated and the market finished with 0.6 percent loss as profit-taking set in on second-last session of the week. The LSE-25 index stood at 4,788.01 points as compared to 4,819.96 of the previous session, showing a net fall of 31.95 points. Volume slipped back to 57.405 million shares from 59.895 million, decreasing by 2.489 million shares. The market moved under pressure as people took to profit-taking, which led the index to downward direction. ICI and Engro Chemical maintained buoyancy and added fresh gains to their worth, while insurance and banking sectors were hard-hit scrips by the selling pressure.
Share values were depressed on last trading day of the week, and the market ended with an easy note following a technical correction. The LSE-25 index closed at 4,775.54 points compared with past sessions' 4,788.70, depicting a fall of 13.16 points.
The volume was drastically down by 24.885 million shares to 32.519 million from 57.405 million. The market made some progress in the morning but later fell prey to pressure. Recovery took place in last minutes, which rescued it from a major disaster.
According to analysts, cements and fertiliser sectors were the best performing stocks of the week on account of growing cement demand and subsidy provided by the government on DAP fertilisers. According to them, the market, after absorbing the ongoing correction, could return to recovery path shortly. The week also witnessed decline in SCRA figures, which showed foreign investors' lack of interest in the market, an analyst said. SCRA investment declined by $3.86 million to S 861 million from $897 million.
He said that SCRA had been a major factor keeping the market stable and enabling it to absorb the impact of the political developments after filing of reference against the Chief Justice of Pakistan. So, decline in it might disturb the sentiment of the market and it could face liquidity problems. However, if the foreign funds kept buying, there could be no such problem, he added.