Downdrift continued on Lahore Stock Exchange (LSE) with activity remaining range-bound, following lack of fresh buying interest from seasoned investors who did not change their approach to avoid taking long and short positions ahead of Eid. The LSE-25 index lost another 13.02 points to close at 2651.88 points compared with Wednesday's 2664.90 points while the volume was also down to 23.002 million shares from 39.739 million of the previous session, registering a fall of 16.736 million shares.
Activity was very thin when the market took start, as investors showed no interest in the market leading to low volumes, analysts said.
The petroleum sector, banks, Adamjee Insurance, and cement sector were among the top losers, while Sui Northern and Engro Chemical emerged as prime gainers, said the brokers, adding the widening gulf between the government and the opposition parties, Wana situation, and US elections have also forced seasoned investors to adopt a 'wait and see' policy.
"I hardly see any significant improvement in buying activity in the market before Eid", a broker said, adding he did not rule out possibility of traditional Eid rally, but it will happen only if the law and order situation remains normal in the country.
Mirza Mohammad Irfan Baig, equity research head, Capital Vision Securities Ltd, said that institutions and funds which started selling a few days back seem to be in no mood to change their strategy, that has led to a range-bound activity in the market.
Moreover, institutions, piling up stocks in key shares sometime back, are now in selling race following which activity that was already slow owing to Ramazan has further come down", he explained.
As a matter of fact, institutions picked stocks in PTCL, OGDC, and other scrips, and after taking benefit of dividend are now off-loading, he said, adding: "There is no fresh buyer in the market and yesterday's buyer, in fact, is today's seller."
Furthermore, Mirza Irfan pointed out that 'below expectations' results of most of the companies has also disappointed investors and appeared to be in a mood to take long or short positions ahead of Eid. If they take fresh positions they will have to pay three weeks' badla charges, but they are not ready for it, he maintained.
About the performance of the fuel and energy sector, he said that people were very optimistic about the entire sector expecting substantial rise in the prices, but it has disappointed them that is evident from selling pressure seen in OGDC, Bosicor, and PPL on Thursday.
Of a total of 83 scrips changed hands on Thursday, 14 picked up, 29 landed in minus zone, while 40 stayed pegged to its previous closing levels.
In positive zone, Sui Northern and Engro Chemical up 40 paisa each, Pakistan PTA 25 paisa, while DG Khan Cement and Dewan Farooq Motors 20 paisa each.
In negative column, PPL lost Rs 1.25, Bank of Punjab Re 1.00, Adamjee Insurance 95 paisa, Askari Commercial Bank and Fauji Cement 80 paisa each.
OGDC was the volume leaders with 2.667 million shares followed by Sui Northern with 2.606 million shares.
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