Led by fuel and energy sector, share values extended the overnight losses on the Lahore Stock Exchange (LSE), where the index registered a net loss of 53.04 points, with a slight upward fluctuation in overall trade turnover. At the close, the LSE-25 index ended at 2530.33 points versus its previous finish at 2583.37, registering a decline of 53.04 points.
Turnover was little up to 50.961 million shares from Tuesday's 47.982 million, registering an improvement of 2.978 million shares.
There was no change in the trading pattern, as the market extended past session's losses. However, according to stock analysts, as compared to Tuesday's session, fresh declines were widespread, led by the oil and gas sector, particularly PSO and OGDC.
According to them, there was no buying interest from financial institutions due to which overall volume showed no visible improvement.
However, some interest was observed in financial sector, but except Pakistan Industrial Credit, rest of the stocks in this sector showed a marginal improvement.
Brokers said that the market is in grip of conflicting rumours regarding the withdrawal of CVT. Because of institutional buyers and big players' staying out of the market, the volume has drastically dried up, a broker said.
"The market is unlikely to recover unless we see some breakthrough regarding the settlement of CVT, holding the entire market hostage," he added.
According to Dr Shahid Zia, head of research, Switch Securities Ltd, the market is in need of support from the institutions which are sidelined on account of CVT issue and State Bank instructions regarding reduction in their exposures.
It is lack of institutional support that despite good corporate results, the market is dull. Now small investors and traders are waiting for a technical correction, which without the buying support from key players may not emerge, he observed.
Commenting on CVT and marginal financing rules, he said these are not big issues, but the big players have made it a matter of their ego and are exerting pressure on the government to withdraw it.
He said that there was also a rumour in the market that Prime Minister Shaukat Aziz is going to meet the KSE people on 21st of this month for settlement of the issue of CVT, he pointed out.
But leaving aside the reasons responsible for existing state of affairs, the bottom line is that the market is constantly showing declines and the volume is coming down and down, which is a matter of grave concern for all stakeholders. Low volumes also indicate that holdings stuck up on badla are not being sold-out, he pointed out.
Out of a total of 82 traded scrips, 7 landed in positive column, 32 shed its values while 43 were intact to its previous closing levels.
In the plus column, Pakistan Industrial Credit was up Rs 1.30, Chakwal Cement Rs 0.90, Bank Alfalah Rs 0.30, Picic Commercial Bank Rs 0.25 and KESC Rs 0.15. Among prominent losers, PSO shed Rs 5.30, OGDC Rs 2.85, PPL Rs 2.40, D.G. Khan Cement Rs 1.95 and ICI Pakistan Rs 1.90. OGDC and Bank of Punjab led the market in terms of turnover with 9.856 million and 8.158 million shares, respectively.
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