Fears of political uncertainty following the situation arising out of the presidential reference against the non-functional Chief Justice (CJ) of Pakistan kept the Lahore share market under pressure on Wednesday and the LSE-25 index lost 75.14 points, or 1.64 percent.
The LSE-25 index closed in minus column at 4499.13 points from 4574.27 points of Tuesday. The volume stood at 30.562 million shares as compared to 48.945 million of the previous session, registering 18.382 million shares decline. The market underwent heavy losses because of what the brokers said its 'belated response' to presidential reference against the non-functional CJ.
On last Friday last, the news had come during trading hours but the market had ignored it, they added. Its impact was further defused due to the weekly holidays, and on Monday, the market people again did not give any weight to the issue. But, on Wednesday the reaction of the market was pertinent amid strong protests of lawyers' community and political leadership, which triggered uncertainty among investors that led to pressure, they stated.
Pak Suzuki and some low profiled banks gained while PPL and MCB led losers' column. When the market closed, losers were far ahead of the gainers. The issue of chief justice was the main factor for the day's immense pressure, coupled with declining trend in international markets, Umair Butt, Director, Dosslani Securities Ltd, said. "As long as political uncertainty exists, the market may not turn to its normal course, as no one would be ready to take risk at this stage," he said.
The Supreme Judicial Council (SJC) has adjourned the hearing of presidential reference against the CJ till Friday; therefore, the market people are expected to await the decision, he added. Apart from this issue, fall in world markets also added to the negative sentiment. Global markets were down by 1 to 2.5 percent amid decline in crude oil prices in the international market.
The market remained under pressure right from open to close, with oil sector main victim, Butt said. Banking stocks were also down, while cement sector, after touching its highs, came down, he added. At one stage, recovery also took place, but to no avail, as the sentiment continued to be bearish, he stated. Due to most of banks being spot, falls were limited, otherwise the size of loss could have doubled, Butt opined.
According to some analysts, amid the prevailing political uncertainty people might adopt a wait and see policy till settlement of the issue of CJ. Of the 118 scrips traded, there were 12 gainers against 47 losers, with 59 unchanged.
Prime gainers were Pak Suzuki Motors, up Rs 8.90, Soneri Bank Rs 1.85, Pakistan Cement Rs 0.25, Japan Power Generation Rs 0.20 and Prime Commercial Bank Rs 0.10.
PPL lost Rs 7.20, MCB Bank Rs 5.50, National Bank Rs 5.00, UBL Rs 4.90 and Adamjee Insurance Rs 4.00. Lucky Cement and Maple Leaf Cement led by market by volume with 4.546 million shares and 3.735 million shares, respectively.
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