Sluggish activity on LSE

Activity remained sluggish on the Lahore Stock Exchange (LSE), as investors adopted a cautious approach in reaction to the last day's Karachi bomb explosions.
The LSE-25 index was marginally down by 7.90 points closing at 2974.72 as against 2982.62 of Wednesday. However, volume dropped drastically to 82.014 million shares from 115.221 million registering a fall of 33.207 million shares.
Trading resumed with an easy note and the market continued painting a dull picture in absence of support from genuine investors due to which volume retreated significantly.
According to brokers, in view of last day's improvement, the market people were expecting increase in buying activity, but it did not happen because of cautions approach of investors due to bomb blasts in Karachi on Wednesday. But despite lack of support from key players, cement sector extended the overnight gains and led the proceedings, they pointed out. However, activity remained very low in the broader market, they added.
Cement sector during the previous session, had performed very well following price hike in the international market, especially in the UAE, said Ahmed Nabeel, head of operations, Invest & Finance Securities.
According to reports, cement price in the international market jumped to $78 per ton on Wednesday while it has swelled by 25 percent in the UAE in a month's period.
He said that recently the Government of Dubai has announced 22-billion dirham infrastructure development plan, which will provide Pakistan an opportunity to export cement to the UAE.
The cement price has also mounted by Rs 2/- per bag in the local market and that is why despite overall sluggishness in the market, cement sector remained active on Thursday, he added.
Because of the above positive factors, cement sector is expected to give good yields in future, Nabeel said. Moreover, according to him, the government is giving much importance to infrastructure development in the country, which will enhance overall economic activity in the country, Nabeel viewed.
In all, 109 scrips changed hands of which 21 improved, 17 showed negative signs while 71 remained intact to its overnight levels. Among prime gainers, Maple Leaf Cement was up Rs 1.45, Dewan Farooq Motors Rs 1.30, and D.G. Khan Cement Rs 0.90, Nishat Mills Rs 0.85 and Jubilee Insurance Rs 0.80. In the minus column, Macpac Films was down by Rs 0.75, National Bank Rs 0.40, Bank of Punjab Rs 0.35, Muslim Commercial Bank Rs 0.30 and Bosicor Pakistan Rs 0.25.
Fauji Cement and D.G. Khan Cement were the volume leaders with 18.647 million and 10.034 million shares, respectively.