Lacklustre conditions on LSE

Lacklustre conditions prevailed at Lahore Stock Exchange (LSE) on Monday where the sentiment stayed bearish because of political uncertainty and lack of interest following issuance of notices to brokers for the March 2005 crisis.
The LSE-25 index shed 32.63 points to close at 4,258.14 as compared to 4,290.77 points of last session. Turnover was almost flat at 13.274 million shares against previous 14.069 million shares.
The market presented a dull picture due to players' lack of interest. According to brokers, the market sentiment was disturbed on account of fears of political turbulence and SECP's issuance of fresh notices to brokers, and the latter's resolve to move court that added to the uncertainty.
ARD's call for countrywide protests on Monday also forced investors to stay on the sidelines, forcing the volume to remain on the lower side, while key banks, including NBP and MCB Bank saw pressure. However, the oil and cement sectors performed better, but their impact was hardly visible.
"I believe the market has now started ignoring the political situation, and the sentiment is disturbed only because of lack of confidence caused by re-opening of the Pandora's box by the regulator (SECP) by issuing fresh notices to brokers, holding them responsible for the March 2005 crisis, said Muhammad Irfan, equity research head of Capital Vision Securities Ltd.
He said that the brokers' resolve to challenge the allegations in court triggered uncertainty among the players. The market depicted lacklustre conditions with banking sector remaining under pressure, he added. The oil sector, however, showed some positive movement following the increase in crude oil prices in the international market, he said.
He said that although the news of PSO privatisation was positive, and the Privatisation Commission had announced that its bidding would take place as per schedule on May 5, but market people were not ready to believe it until the deal is done. He said that frequent changes in the schedule of PSO bidding had shattered the confidence of people and that was why they were not taking the government announcement for PSO bidding seriously.
Overall, 127 scrips changed hands, of which 26 were up, 27 landed in minus zone while 74 were intact to their previous closing levels. Among key gainers, Fauji Fertiliser improved by Rs 1.65; Kohat Cement Rs 1.35, Pakistan Industrial Credit Rs 1.15, Lucky Cement Re 1.00 and PTCL Rs 0.95.
Major declines included MCB Bank, which shed Rs 9.50, National Bank Rs 6.35, Bank of Punjab Rs 5.90, Askari Commercial Bank Rs 2.60 and Soneri Bank Rs 1.90. The Bank of Punjab and Lucky Cement were the volume leaders with 2.406 million and 1.504 million shares, respectively.