Market closes in plus column after a long time

LAHORE - The equity market on Tuesday kept its previous bearish trend intact and with slight improvement in volumes closed in plus column after a long time at 9,181.48 points level, up by 2.51 points. Daily turnover touched 2.03 million shares as against 1.6 million shares traded previously.

Analysts said that investors remained on the sidelines as the global financial crisis continued to further escalate.

They said positive closing of the market came after the SBP took a step to rescue the share trading by injecting Rs 54 billion after an extreme credit crunch was witnessed in the banking system on account of unexpected high call rates.

Tariq Khurshid, Executive Director, First Pakistan Securities Ltd, observed that market was waiting for remedial measures from government including formation of market support fund. But improvement in economic conditions is must to change the market trend, he added.

Earlier, the market for another day of dull trading opened 0.24 points minus at 9178.73 points. With limited movement market moved up and after day long trading with slightly improved volumes closed 2.51 points plus at 9181.48 points. Free float index opened in minus colu million and after today closing closed 2.09 points minus at 10062.35 points. All shares gained 0.82 points and closed at 6640.48 points. KMI on the other hands lost 0.69 points and closed at 11224.18 points. From sixty five traded scrips 10 closed in plus and 14 in minus colu million while 41 scrips kept last closings. Volumes improved further and 2039860 shares changed hands in today trading.

Golden Arrow took top position in volumes with traded volumes of 602000 shares and closed 0.01 rupees plus. Trading with volumes took place in few scrips and even in these scrips price fluctuation was limited.

Financial results failed to influence the market trend though good results trigger some buying in that scrip.

Meanwhile, according to news reports the KSE has recomposed its 100 index from Oct 06, 2008. As per the re-composition rules, seven new companies have entered the 100 index namely, Askari Leasing, Nakshbandi Industries, Colony Sugar Mills, Arif Habib Bank, JS Bank, Altern Energy and Hinopak Motors Limited. The outgoing companies from the KSE 100 index are Orix Leasing Pakistan, Samin Textiles, Habib Sugar, Maple Leaf Cement, Attock Cement, Bosicor Pakistan and Pak Electron.

The recomposition exercise was based on the review period Mar 2008 to Aug 2008.

Market opened at Lahore Stock Exchange at yesterday closing of 2829.39 points and resumed downwards trend. In two steps market lost 5.64 points and closed at 2823.85 points. Trading scrips increased slightly and 87 scrips were traded.

From those 2 closed in plus 2 in minus and remaining 83 kept last closings. Volumes improved substantially and 109100 shares were traded. PCCL after long time topped in volumes with traded volumes of 39000 shares but lost rupees 0.10.