Share prices tumbled on Lahore Stock Exchange (LSE) following profit-taking and to some extent worries over law and order situation coupled with statements of Indian government accusing Pakistan of Mumbai train blasts. The LSE-25 index lost 61.64 points or 1.39 -percent closing at 4344.64 as compared to 4406.28 of the previous session.
Turnover retreated to 35.249 million shares from 38.728 million shares, registering a fall of 3.479 million shares or 9-percent. The market depicted weakness on Monday after staying bullish for a week's period, as people took to profit taking that led the index downward. However, when the closing bell rang gainers were more than the losers with the former outnumbering the latter with a visible margin, showing underlying sentiment was bullish despite multiple negative factors, analysts said.
According to them, the market was nervous initially and due to profit-taking in key banks and oil & gas sectors shares, the index moved down but later recovery took place enabling the index to recoup a sizeable chunk of early losses, they pointed out. In banking sector, National Bank and in oil sector PSO were the top losers while DG Khan Cement and Engro Chemical delivered well and strengthened their positions.
There were two major negative factors ie killing of Allama Hassan Turabi in a suicide attack in Karachi last week and Indian move to allege Pakistan for Mumbai blasts but their impact over the market was not as much as was being feared by the players, Mirza Muhammad Irfan of Capital Vision Securities Ltd, said.
As the sad incident of Allama Turabi's death occurred after close of the market on last Friday, therefore its impact was discounted and it little affected the sentiment when the market resumed trading on Monday after observing two weekly holidays, he added.
Had the incident occurred during the trading hours on Friday last, it could have disastrous impact on the market, he pointed out. The downward change in the index was seen due to negative trend of the oil sector shares, which have much weightage in the index. But even then banks and cement sector fared very well with Maple Leaf Cement touching its upper cap limit, he said.
About Indian move to blame Pakistan for Mumbai train blasts, Irfan said, although the Indian premier in his statements has alleged Pakistan's involvement in the said incidents, but it would not affect the ongoing peace process between the two countries. Because of the current international scenario, in which India is striving hard to secure slot of secretary general of UNO, its leadership cannot afford cracks in relations between the two countries.
"Therefore, I do not see any significant change in the relations and the reversal of peace process initiated by the two neighbouring countries seems almost impossible." Moreover the corporate results season, which is to start late this month, is keeping people's hopes alive and if the announcements are up to their expectations, the market will be definitely responding to it, he viewed.
Out of a total of 91 traded scrips, 34 improved in worth, 19 landed in minus column with 38 staying unchanged. The day's top gainers included DG Khan Cement and Engro Chemical improving by Rs 2.40 each, Nishat (Chunian) Rs 2.20 while Fauji Fertiliser and Sui Northern Rs 1.95 and Rs 1.90.
respectively. In negative zone, National Bank shed Rs 4.00, PSO Rs 3.75, MCB Bank Rs 3.10, Adamjee Insurance Rs 2.35 and UBL Rs 1.75. Fauji Cement and DG Khan Cement led the proceedings in terms of high volume with 7.408 million shares and 5.005 million shares, respectively.
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