Share values extended the overnight losses on Lahore Stock Exchange (LSE) on Thursday, as investors, panicked by the fresh suicidal attack in Hub, took to heavy off-loading, resultantly the benchmark index underwent another loss of 3.48 percent.
The LSE-25 index closed at 4,589.19 points as against 4,754.83 of Wednesday, registering a net loss of 165.64 points (3.48 percent). Volume also went down drastically to 38.970 million shares from 60.446 million of the previous session, showing a decline of 21.476 million shares (35.52 percent).
The market took a positive start, but soon fell prey to massive selling pressure caused by the fresh incident of suicide attack in Hub, which reportedly claimed 29 lives. Commenting on the recent equity falls, an analyst said: "It is delayed reaction of the Lal Masjid tragedy."
Moreover, the market was overbought and a technical correction was also long over due, he added. Volume was also very low today because majority of people stayed away from the market activity in view of worsening law and order situation. All major scrips came under pressure with MCB and PSO receiving massive battering. However, movement was seen in some small banks and cement stocks, which added fresh gains to the index.
The fresh wave of suicide attacks has caused panic among the foreign investors and they are off-loading heavily, Mirza Muhammad Irfan, equity research head of Capital Vision Securities Ltd, said. Moreover, chances for a technical correction were also there due to highly overbought position of the market, he added. In initial trading, the market showed positive signs today, but the news of Hub incident led it to minus column, he maintained.
Today, all key shares including MCB Bank, NBP, Luckey Cement, Arif Habib Securities, Javed Omer Vohra and Company, Adamjee Insurance and Engro Chemical reached their lower circuit breakers, he pointed out. Reports of inquiry by the Securities and Exchange Commission of Pakistan against some scrips, whose prices have soared enormously, has also scared investors and they are staying away fearing yet another crisis in the stock market, he stated.
Out of a total 109 traded scrips, six improved their worth, 61 landed in minus column while 42 were intact to their previous levels. In positive column, D.S Industries gained Rs 1.55, Faysal Bank Rs 1.20, Pakistan Industrial Credit Rs 1.15, Crescent Commercial Bank Rs 0.40 and Habib Bank Rs 0.15. In red zone, MCB Bank shed Rs 18.95, PSO Rs 15.80, National Bank Rs 12.70, Adamjee Insurance Rs 12.45 and Engro Chemical Rs 12.00. Arif Habib Securities and Fauji Fertiliser Bin Qasim were the volume leaders with 5.058 million shares and 2.951 million shares, respectively.
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