The local share market behaved roughly and ended the last trading day of the week with a weak note, with the index benchmark posting a net fall of 0.8 percent amid descending volume of transactions.
The LSE-25 index closed at 3,653.67 points compared with its past closing of 3,683.36 points, registering a decline of 29.69 points. Volume descended to 32.120 million shares from 44.434 million of Thursday, registering a fall of 12.313 million shares.
The market could not settle down and mostly remained directionless on account of lacking support from key players. According to stock analysts, the index was positive in early hours but later the sentiment turned weak before close of the first session. In the second session, the market again behaved roughly and bounced up and down to finally finish with a bearish note.
On account of lacking interest from institutions and other potential players, volume further came down, they pointed out. Some interest was seen in oil sector and banks but it had only marginal impact on the overall sentiment. PSO and Bank Alfalah were the top gainers of the day, while Adamjee Insurance was the key victim of selling pressure.
The market witnessed a confused trading during the whole week, and the index shed 180 points, while volume reduced, with hardly any interest from punters and traders, said Ahmed Nabeel, head of operations, Invest and Finance Securities Ltd. The market is suffering due to tug of war between stock exchanges and Securities and Exchange Commission of Pakistan (SECP) on CoT issue, while fate of margin financing is still not clear, he added. "In addition to this, the country is facing mega threats like terrorism, international bombings effects, U-turn in Indian attitude, dams issue, national level floods, Hasba Bill, political problems and interest rate hike etc," he stated.
Meanwhile, a committee was formed for the solution of liquidity and CoT issue, and a report of the body is being awaited, he maintained. If the committee came up with a concrete solution by next week, the market shall rise and touch 8,000 levels, and if it took further time to arrive at a conclusion the level will be 7,000 index. Moreover, corporate results are expected to be handsome and payout will be better, but if scenario and trend is negative, the results might not affect the prices, he pointed out. Investors are advised to adopt a wait and see policy and buy on dips at the KSE index level of 7,200, Ahmed Nabeel said.
Out of a total of 79 scrips, 9 improved its worth, 34 landed in minus zone, while 36 stayed glued to its previous levels. Among major gainers, PSO gained Rs 2.10, Bank Alfalah Rs 1.05, Crescent Commercial Bank Rs 0.55 and Prime Commercial Bank Rs 0.15. In negative zone, Adamjee Insurance shed Rs 1.90, Union Bank Rs 1.55, Bank of Punjab Rs 1.50, Askari Commercial Bank Rs 1.40 and Nishat Mills Rs 1.35.
Fauji Fertiliser Bin Qasim was the volume leader with 4.661 million shares turnover followed by PPL with 4.333 million shares.
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