Share prices tumble on LSE

With cement, oil and banking sectors under heavy selling pressure, share prices tumbled on the Lahore Stock Exchange (LSE) on first trading day of the week while the benchmark index shed one percent. The LSE-25 index ended at 4461.67 points as against its previous closing of 4506.21 points, losing 44.54 points (one percent).
Turnover also significantly came down to the level of 25.750 million shares from 38.462 million, depicting a fall of 12.711 million shares (33 percent). The market showed negative vibes and remained in minus zone most of the time, with cement sectors undergoing immense selling pressure.
According to analysts, the cement sector, in view of increase in its demand, has remained in focus of activity and turned overbought, therefore, pressure was emerging in it. Another factor for depressed sentiment of cement sector was the news report regarding halting supply to India by the Pakistani cement exporters, an analyst said. The oil sector and key banks also stayed depressed while Adamjee Insurance and Nishat Mills remained the main attractions for the day.
Bulk of pressure was seen in the cement sector and due to corporate results there was also high volatility in it, said Mirza Muhammad Irfan, equity research head of Capital Vision Securities Ltd. Moreover, its highly overbought position was also a sufficient reason for its depreciation, he added. DG Khan Cement and Maple Leaf Cement were the hard hit-scrips, reaching their lower cap limits on Monday, he pointed out.
Adamjee Insurance and Nishat Mills attracted fresh buying and touched their upper circuit breakers. Bank Alfalah was also in demand on Monday in anticipation of its good quarterly earnings. Its board meeting is scheduled for April 25 to declare quarterly results and the market people are very upbeat about its earning report, Irfan said.
Apart from these factors, an important cause of the depressed sentiment of the market pertains to brokers' request for increase in CFS cap limit, which recently has been declined by the regulator, the Securities and Exchange Commission of Pakistan.
However, the brokers are still demanding enhancement in the cap limit. At present, there is a lot of weak-holding in the market and if the CFS cap limit is not enhanced, an enormous pressure could erupt in the market, Irfan feared. Out of a total of 151 traded scrips, 20 were up, 37 went down while value of 94 stayed put.
Among major advancing stocks, Adamjee Insurance gained Rs 9.65, Nishat Mills Rs 2.40, Soneri Bank Rs 1.70, Bank Alfalah Rs 1.55 and Nishat (Chunian) Rs 1.40.
In minus column, DG Khan Cement lost its value by Rs 5.00, PSO Rs 4.55, National Bank Rs 3.60, MCB Bank Rs 3.60 and Attock Refinery Rs 3.00. Bank Alfalah and DG Khan Cement were the volume leaders with 4.869 million shares and 3.079 million shares, respectively.