Share prices ended weak on Lahore Stock Exchange (LSE) following selling pressure, mostly in petroleum and cement stocks, which forced the index down by 1.28 percent.
The LSE-25 index closed at 4424,08 points compared with 4481.84 of Tuesday, shedding 57.76 points. Turnover declined to 71.803 million shares from 65.459 million shares of the previous session, registering a fall of 6.344 million shares.
Trading commenced with a positive note and the market depicted a rising tempo for some time subsequently, but soon fell victim to selling pressure, stockbrokers said.
On Wednesday, PSO and cement stocks were the worst hit scrips, which underwent losses heavily, with D.G. Khan cement and some others touching their lower cap limits. Analysts described over priced-shares as the key factor for keeping the market under pressure. As the market is heavily overbought, therefore, it might further lighten its weight in the upcoming session, an analyst said. Union Bank and National Bank were the day's major gainers while PSO, D.G. Khan Cement and Pioneer Cement were among the key losers.
Mirza Muhammad Irfan, equity research head of Capital Vision Securities Ltd, said the new rules for cap limits introduced by Securities and Exchange Commission of Pakistan (SECP) were the main source for causing panic in the market. Moreover, almost all cement stocks were overbought; therefore, heavy pressure emerged in them. But, he pointed out; there was no change in fundamentals of the market. He said that more or less all cement stocks reached their lower upper cap limits. However, buying interest in banks, in second half of the session, particularly in National Bank, helped some recovery enabling the index to finish with a reduced loss, he stated.
Fertiliser sector also stayed depressed, while gas sector did well initially but afterward came under pressure, he pointed out. However, he added that overall sentiment was good and any positive development concerning construction of big dams will boost activity in the market. The statements appearing in newspapers these days indicate that government has come in a position where it take a final decision about Kalabagh Dam, he commented.
Of total 94 traded scrips, 9 were up, 43 stayed in negative column while 42 were intact to their previous levels. Among major gainers, Union Bank was up Rs 1.75, National Bank Rs 1.40, NDLC-IFIC Bank Rs 0.95, Sui Southern Rs 0.90 and Prime Commercial Bank Rs 0.60. In negative column, PSO shed Rs 5.90, D.G. Khan Cement Rs 4.45, Pioneer Cement Rs 3.40, Lucky Cement Rs 3.20 and Bank of Punjab Rs 2.90.
Bosicor Pakistan and National Bank were the volume leaders with 8.299 million shares and 7.344 million shares, respectively.
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