LSE ends with gains
LAHORE: The Lahore stock market gained 65.88 points, or 2.25 percent, week-on-week to close at 2,997.61 points compared with 2,931.73 points of the previous week, while volume remained almost unchanged, declining 1.22 percent, to 81 million shares compared with 82 million shares of the previous week.
The market closed slightly negative only on the first day of the week, due to a small intra-day technical correction. The rest of the four sessions of the week remained positive due to a buying frenzy especially in the oil sector. The cement, banking and fertilizer sectors also remained partners in this week’s major rallies.
Mirza M Irfan, an analyst at Capital Vision Securities, a local brokerage house, said the oil sector performed well due to news about three oil exploration licences that were issued by Oil and Gas Regulatory Authority (OGRA) and other news about the exploration of an oil well at Balochistan by OGDC, which led to buying in the oil sector. However recent gains are making the market highly overbought so for its technical health it must consolidate otherwise declines will be sharper than gains, he added.
Motasim Billah, a director at Techno Fundamental Securities, a local brokerage house, said the market after such hefty gains now would expectedly remain volatile so small and medium investors should stay sidelined till there is room for fresh buying. Analysts expressed concern about the high COT volumes. Mehmood Afzal Butt, an analyst at KASB Secur-ities, a local brokerage house, said investors should restrict to high yield stocks of the oil, banking, fertilizer and cement sectors, which are expected to perform well in coming sessions. —Staff Report