Share values extended the overnight gains on Lahore Stock Exchange on Wednesday as investors went for buying in their favourite scrips wholeheartedly, but last-minute pressure forced the index to end with a clamped gain.
The LSE-25 index moved up by 17.04 points to close at 2939.64 versus 2922.60 of Tuesday. Overall turnover widened to 162.341 million shares from 143.775 million of the previous session, showing an increase of 18.566 million shares.
The market maintained the upward trend in early hours and at one stage, during the first half of the session, the index was up by 70 points. But later pressure emerged from different counters which resulted in pruning, forcing the index to end with a reduced gain.
According to brokers, it was profit-taking and there was no other reason for the selling pressure. Adamjee Insurance, Fauji Fertiliser and ICI were key driving force while Macpac and PSO were day's prime losers.
Brokers, however, termed the profit-taking a blessing in disguise, and added that if the market improved with dips, the chances for a major disaster become almost non-existent.
Dr Shahid Zia, head of research at Switch Securities Ltd, said as against Lahore, the KSE did well with Adamjee Insurance showing outstanding performance. A good movement was also witnessed in Sui Northern and Sui Southern, cement and banking stocks, which indicated that they could go up further up.
About pressure in LSE which was seen in last minutes, he said it was difficult to ascertain the reason but one should not be worried as it would be absorbed soon, and the people could witness a good session on Thursday.
About the future prospects, he said the market was expected to continue gaining pace gradually with short corrections.
"I foresee cement, banking and fuel and energy related stocks will show an outstanding performance in the coming sessions on the back of positive news pertaining to construction of new dams and investor friendly budget.
The market people are also hoping for tax exemption on capital gains in the forthcoming budget," he pointed out.
"The market is in overbought range but I don't see reversal in its direction in the near term," he added.
Of 99 scrips 26 surged, 23 lost value and 50 maintained its overnight positions. Among prime gainers, Adamjee Insurance was up by Rs 4.20, Fauji Fertiliser Rs 1.75, ICI Pakistan Rs 1.40, D.G. Khan Cement Rs 1.15 and Pakistan Industrial Credit Rs 0.95.
In the minus column, Macpac Films declined by Rs .85, PSO Rs 0.85, Bosicor Pakistan Rs 0.50, while Union Bank and Dewan Salman Fibre Rs 0.35 each. OGDC and D.G. Khan Cement dominated the proceedings in terms of volume with 21.058 million and 17.654 million-share turnover, respectively.
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