Lahore Stock Exchange index sheds 89 points

With the index losing 88.89 points, share values suffered widespread losses at Lahore Stock Exchange amid thin trade turnover on Monday.
The LSE-25 index retreated to 2638.46 points from 2727.35 while volume declined to 53.472 million shares from 61.961 million of previous closing, registering a fall of 8.489 million shares.
The market continued last Friday's bearish trend and extended the losses, which were recorded across the board. Stock traders said it was a technical correction that led equities downward, adding that there was no stock-specific news having impact on the market. PSO and Fauji Fertiliser were the hard-hit stocks of the day, followed by ICI and Engro Chemical which also came under pressure to finally stay in losers' column.
The market was heavily overbought and was expected to undergo a technical correction which was long overdue, said Dr Shahid Zia, head of research, Switch Securities Ltd, while describing the reasons for equity fall.
"However, we should not worry as far as the future of the market is concerned, because neither there is any change in the fundamentals nor there is any negative development from the political side," he added.
He said that market sentiment may remain subdued with the index drifting down for another couple of days, but afterwards it would recover on the basis of its strong fundamentals.
Furthermore, he said, the corporate results were also very encouraging and supportive; therefore, the market seemed poised to touch the level people are expecting. "Usually ride is very rough on such big levels, hence, in short term, the market looks weaker, but in the longer run it is very bright," he said. Speculators and weak-holders, however, could face problems but all seems very well for the position holders, he added.
Out of a total of 90 scrips, only two improved their worth, 44 landed in the negative column while 44 stayed put. Union Bank and Fidelity Investment were the only gainers, improving by Rs 0.90 and Rs 0.01, respectively. In the minus column, PSO shed Rs 8.55, Fauji Fertiliser Rs 4.00, ICI Pakistan Rs 3.50, Engro Chemical Rs 3.40 and Pakistan Industrial Credit Rs 3.25.
PIAC and Dewan Salman Fibre were quoted as volume leaders with 7.516 million and 6.123 million shares turnover, respectively.