Share values suffered heavy battering on the Lahore Stock Exchange (LSE) following selling-pressure in overpriced shares mainly caused by a technical correction which led the main index down by 1.45 percent.
The LSE-25 index finished at 4414.25 points as against 4479.22 of the previous session, losing 64.97 points. The volume also drastically declined to 47.649 million shares from 77.313 million shares, showing a fall of 29.664 million shares.
The market took a bullish start, but soon it fell victim to pressure, which kept the index in minus zone in subsequent hours. Stock analysts said the market was highly overbought and the people were expecting a technical correction that was long overdue.
They said the bulk of pressure was witnessed in overpriced shares such as cement and banks, which are showing positive trend on hopes of construction of new dams and on the basis of their good results, respectively.
The selling-pressure that emerged soon after opening of the market continued later in the day with equities receiving massive battering under MCB Bank. The market was still overpriced, therefore, it might continue undergoing pressure for another session, brokers said.
In addition to technical reasons, the introduction of real time CFS system from Monday and uncertainty over the issue of construction of new dams and the PTCL deal were other factors adding to selling pressure, said Mirza Mohammad Irfan, equity research head of Capital Vision Securities Ltd.
He said the market responded in negative to the real time CFS system and its impact was clearly visible on Monday. He, however, pointed out that banking and cement sectors were the worst-hit sectors.
About low activity in the oil and gas sector, he said that on basis of encouraging corporate results and hopes of construction of new dams, big players have diverted their attention to cement and bank sectors due to which their interest in petroleum-related shares has come down. "If the government succeeds in convincing provinces for construction of big dams, the entire cement sector will get boost from this development", he added.
Overall 94 scrips changed hands on the floor, of which eight improved their worth, 41 landed in minus zone, while 45 were intact to their previous levels.
Among key gainers, Lucky Cement gained Rs 1.15, Bank Alfalah 70 paisa, Gharibwal Cement 50 paisa, DG Khan Cement 15 paisa, and Picic Commercial Bank 10 paisa.
In minus zone, MCB Bank shed Rs 8.60, Adamjee Insurance and Nishat Mills Rs 4.45 each, Askari Commercial Bank Rs 3.80, while PSO Rs 3.60.
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