LSE index down 34.75 points

Despite positive news pertaining to suspension of badla phase-out, the share market failed to take an upward turn and moved both ways, while last-minute heavy selling pressure dragged the index in minus column.
The LSE-25 index was down 34.75 points or 0.9 percent to finish at 3793.58 points compared with 3828.33 points of the previous closing. Volume, however, showed some improvement and was registered at 37.046 million shares as against 32.787 million shares, showing an increase of 4.258 million shares.
Initially, the market performed well and a good buying activity took place following the news regarding suspension of badla phase-out by Securities and Exchange Commission of Pakistan (SECP). Subsequently, the market maintained the upward tempo but in last minutes because of heavy selling the sentiment changed and the index finally ended with a bearish note, stock analysts said.
According to a broker, in view of positive development with regard to suspension of badla phase-out, there was a strong anticipation for a sharp activity, and it happened but later day pressure changed the trend.
He, however, said that the market may take an upward turn on Tuesday. Pakistan Oilfields, Adamjee Insurance and Union Bank improved its worth, while PPL, OGDC and National Bank were the prime losers of the day.
The market moved erratically and last minutes selling pressure forced the index to close with a weak note, said Dr Shahid Zia, head of research at Switch Securities Ltd. According to him, in response to the positive news of suspension of badla phase-out, the market took a bullish start and remained in bullish mood most of the time during the session but last minute pressure changed the entire sentiment. In early hours, investors were very excited due to which the market kept improving, but pressure emerging in second half of the session disappointed the players.
Commenting on badla phase-out, he said that it's a good step and finally the SECP has realised the problems being faced by the brokers' because of mismatch between the pace of badla phase-out and margin financing. However, it will have a little impact on the market on account of low exposure limits of individual houses fixed by the stock exchanges. In case the stock exchanges enhance this limit, the market sentiment will definitely boost up, he added.
According to him, the SECP took long time to realise the problems caused by badla phase-out which means the regulator was running the affairs on ad hoc basis. "Now when country is in facing flood, local bodies polls are approaching, amid uncertain political scenario, the capital market cannot afford ad hocism." He said the regulator must take concrete steps keeping in view the problems of the brokers to put the market on right track.
Out of a total of 72 traded scrips, 13 improved its worth, 29 showed negative signs, while 30 stayed unchanged. In positive column, Pakistan Oilfields was up Rs 3.00, ICI Pakistan Rs 2.60, Adamjee Insurance Rs 2.50, Union Bank Rs 1.40 and Lucky Cement Rs 0.60. In minus zone, PPL shed Rs 10.00, OGDC Rs 2.30, National Bank Rs 2.10, Bank of Punjab Rs 1.70 and D.G. Khan Cement Rs 1.40.