Share prices suffered further losses on Lahore Stock Exchange (LSE), with index losing 6.79-percent while analysts feared more falls, if the government failed to take immediate corrective measures.
The LSE-25 index fell by 272.93 points or 6.79-percent to 3745.94 from 4018.87 of Tuesday. Volume improved to 27.965 million shares from 16.950 million of the previous session, posting a rise of 11.015 million or 63 percent.
There was no let-up in the losing streak and the share values continued eroding under the lead of petroleum shares, with Pakistan Oil Refinery and PPL receiving a heavy blow. Stock analysts said that there was no support from the institutions and other investors were also not inclined to re-enter the crisis-hit market. The existing state of affairs is very disappointing and if the government high-ups did not take dare steps, the crisis might further prolong, they added. During this week, the market so far has lost 592 points, and if the institutional support did not come, there will be no change in the trend. The government needs to intervene urgently and any further delay on its part will further added to its trouble, a broker said.
The policy markers and advisors of the government for sake of just 6 billion rupees capital values tax have deprived the market of 12 billion dollars (Rs 720 billion), Javed Iqbal, chief executive of Javed Iqbal Securities Ltd, said while commenting on the market crisis. Because of this crisis, which is result of the wrong policies of the government advisors, members brokers are in deep trouble, he added. He held the CBR authorities responsible for the current crisis and said they gave wrong advice to the government to double taxes on the stocks' transactions. About blank sale and short selling, he said in order to cover their inefficiencies; bureaucracy was trying to put the whole burden on members and brokers, which is not fair.
According to him, the appointment of SECP officials to check blank selling etc, has served nothing and added fuel to fire, instead. The SCEP will get nothing as brokers/members have not committed any wrong. Increase in CVT and withholding tax was not a wise decision of the government, said Javed Iqbal. Lashing out the government advisors, he said their statements that the government will withdraw exemption on capital gains tax further aggravated the situation. The government must take note of such irresponsible statements of its advisors for putting the market into trouble.
Out of 93 total scrips, 6 improved, 50 landed in negative column while 37 were intact to their previous levels. Among major gainers, Crescent Commercial Bank and Prime Commercial Bank improved by Rs 0.50 each, Hub Power Company and PIAC Rs 0.40 each and PICIC Energy Fund Rs 0.05. Among major declines, National Refinery shed Rs 18.50, PPL Rs 14.50, Engro Chemical Rs 13.45, National Bank Rs 12.70 and MCB Bank Rs 12.65. Fauji Fertiliser and National Bank were the volume leaders with 3.416 million shares and 3.306 million shares, respectively.
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