Share prices pulled back on Lahore Stock Exchange (LSE), under the lead of PSO and other oil sector shares because of their disappointment due to no upward revision in prices of petroleum products, amid steady volume of transactions. The LSE-25 index retreated to 2736.37 points from Wednesday's 2746.66, depicting a decline of 10.29 points, while volume remained almost flat at 36.938 million shares as compared to 36.539 million of the previous day.
The market opened with a minus note and subsequently moved in a zigzag way with thin activity for lack of investors' interest, particularly on the part of big players that led to weak finish of the index.
According to stock brokers, the rise in badla rate and the political scene emerging after signing of Uniform Bill by the Acting President is keeping investors away from the market. Moreover, the MMA deadline for putting off the uniform by the President has also concerned the investors about the future political scene, they added.
The oil sector led by PSO and followed by other oil sector shares remained weak. The rise, however, was seen in Shezan International, fertilisers and cement stocks.
Dr Shahid Zia, head of research of Switch Securities Ltd, said the market is weak for the last three days amid low volumes, but there is no panic. The lack of interest indicates lack of public interest in the market, he added.
He, however, pointed out the market has not reacted to the political scenario emerging after the release of Asif Zardari and signing of Uniform Bill by the Acting President, which means the market is running on the back of its own weightage and not influenced by any external factor.
About the low volumes, he described forthcoming elections in the three stock exchanges and high badla rate as main factors for low activity.
Another factor for thin activity is gradual shift of shares to margin financing from badla due to which volume is drying up and the cost of transaction is moving up, he said.
He said the market is taking short corrections and its general trend seems sideways to direction-less, therefore, people are advised to be cautious in fresh deals, and it is better to avoid going for long-term investment.
Out of a total of 99 traded scrips, 9 improved in worth, 35 landed in negative zone, while 55 stayed intact to its previous levels.
Among major gainers, Shezan International soared by Rs 4.00, Japan Power Generation 55 paisa, Fauji Fertilizer 30 paisa, PIAC and Maple Leaf Cement by 15 paisa each.
In negative zone, PSO was down by Rs 1.90, Picic Growth Fund 90 paisa, Pakistan Oil Fields 85 paisa, Dewan Farooq Motors 75 paisa, and ICI Pakistan 75 paisa.
Bank of Punjab was the volume leader with 4.824 million shares followed by Bosicor Pakistan with 4.704 million shares.
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