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Bulls stage comeback on LSE

RECORDER REPORT

LAHORE: Bulls returned to the driving seats on Wednesday following the rumours about increasing chances of US President Clinton's visit to Pakistan. This triggered buying spree in the stock market, pushing the index up by 7.88 points.

There were strong rumours in the market that the US government was to take a final decision later on Thursday about President Clinton's much-awaited visit to Pakistan. On this anticipation, the market opened on a positive note and continued to move up gradually. The bull-run, under the lead of oil sector, continued till close of the market.

Bulk of the activity was seen in PSO and Pakistan Oil Fields. PSO opened at Rs 241.70 and after touching its lowest level at Rs 240.00 closed at Rs 256.00. Adamjee Insurance, Engro Chemical PTCL and ICI also fared better and ended on a positive note.

Market analysts stated upward technical correction coupled with the rumours of Clinton's visit to Pakistan as the main reason for the day's upsurge.

As the market was in an extremely overbought position, therefore, an upward correction was expected any time, said an analyst.

The prime reason of hectic activity in PSO was the rising trend of oil prices in the international market, he added. The local institutional buying support boosted the sentiments of the market, he maintained.

The day's positive closing, he said, indicates that the market will continue to show upturn on Friday, especially a significant activity is likely to take place in PSO and PTCL.

The LSE 101-share index registered an increase of 7.88 points to 459.01 points as against 451.13 points of Wednesday. The volume amounted to 61.748 million shares as compared with 67.945 million shares of the previous day, showing a fall of 6.197 million shares.

Overall there were 41 gainers to 38 losers out of a total of 156 scrips traded during the day, while 77 remained intact to their overnight levels.

PSO topped the list of gainers improving its worth Rs 14.30. Pakistan Oil Fields was up Rs 10.00, ICP SEMF Rs 2.00, Adamjee Insurance Rs 1.70, Picic and Noor Sugar Mills Rs 1.25 each.

The losers were led by Millat Tractors which lost its worth by Rs 4.00, Nishat Mills Rs 3.05, Din Textile Mills and Saif Textile Mills Re. 1.00, while ICC Textile Mills was down by 50 pasia.