Market reacts positively to impeachment report

LAHORE - The equity market on Thursday reacted positively to the news reports that the ruling coalition partners have, in principle, agreed to impeach President Musharraf. Hence the KSE-100 index edged up 0.3 per cent, adding 28.47 points to close at 9,707.29 with ready turnover of 88.5m shares.

Dealers said that market continued all the daylong to fluctuate around the dividing line in anticipation of a formal announcement of the impeachment of President  Musharraf by the ruling coalition, which according to some experts would further deepen political tension and discourage investors. The $37b market has dropped 38pc since a life high on April 21 and is down 31p so far this year, making it Asia's third-worst performer after Vietnam and China, dealers said.

They said that market welcomed the expected clarity on political horizon and after initial decline it recovered all losses.

Earlier, the market opened 9 points minus at 9669.19 points and resumed declining trend. Initially it went down to 9469.98 points low but recovered immediately. First attempt failed to bring market out of red but in second attempt it came out and started fluctuating across dividing line. After spending some time in green territory market finally headed to 9816.98 points high.

It closed at 9707.29 points plus 28.47 points after hitting today high. Free float index opened in minus column and went down to 10521.64 points in early hour trading. It recovered later and closed 47.21 points plus at 10833.22 points after hitting 11021.21 points high. All shares followed other two indexes and closed 11.56 points plus at 7002.40 points.

Trading activity was witnessed in 287 scrips and out of those 113 closed in plus and 161 closed in minus column while remaining 13 closed at last level. Turn over increased substantially and 119.797 million shares were traded today. AHSL snatched top position in volumes from NIB bank. In today trading 10.457m shares of AHSL changed hands and scrip closed rupees 2.85 down. Out of top thirty volumes leaders nine closed with plus signs against 20 minus closings.

Among the most active stocks, Arif Habib Sec fell 2.4 per cent to 114 rupees, NIB Bank was down 1.4 per cent to 8.76 rupees, and D.G. Khan Cement shed 4.5 per cent to 45.80 rupees.

At Lahore Stock Exchange market closed at day end 47.41 points plus at 3076.22 points. Traded scrips were 92 in numbers and out of those 23 closed up 32 closed down while 37 scrips remained pegged to yesterday level. Volumes got substantial increase and 11.199 million shares were traded.

Here NIB bank continues to hold top position in volumes with traded turnover of 2.354 million shares and closed fractionally down.