Share prices edged lower on the Lahore Stock Exchange (LSE) amid range-bound activity as people stayed on sidelines following filing of reference against the prime minister by the combined opposition, coupled with the news appearing in a section of press regarding alleged fraud in two branches of the Bank of Punjab (BoP) during the past week.
The market behaved well on opening day of the week under review, but in the subsequent sessions turned volatile amid various rumours, which affected the sentiment. The most concerning news from the market viewpoint was the combined opposition's move of filing reference in the National Assembly against Prime Minister Shaukat Aziz, holding him responsible for the stock market crisis, analysts said.
This news triggered a sense of fear amongst the market players and majority of them went for profit-taking while others stayed in safe havens which turned the market range-bound, they added. The news appearing in a section of the press regarding fraud in two branches of the Bank of Punjab also sent shock waves in the banking sector and its impact was later on seen across the board. Although the BoP management has denied such news, investor is still very careful, a broker said.
When calculated on the weekend, the LSE-25 index showed a net loss of 28.67 points (0.60 percent) reaching 4,747.06 from 4,775.73. Volume, however, remained on the upper side and moved up to 43.482 million shares from 32.519 million shares, registering an increase of 11 million shares (33.826 percent).
Equities soared on first day of the week under review, but bulk of activity was witnessed in comparatively low profiled shares, which performed outstandingly. The LSE-25 index was up by 38.93 points to reach 4,814.66 from 4,775.73. Overall turnover was, however, little changed to 30.525 million shares from 32.519 million shares.
The market showed a positive movement throughout the day, which helped the index gain strength. Sanofi Aventis Pakistan and Packaged Ltd were the key gainers while Pakistan Refinery and Hinopak Motors underwent heavy losses.
Share prices moved both ways on the second day but finally settled in negative zone amid ascending volume on account of pressure, resulting from profit-taking. The LSE-25 index declined by 21.57 points to 4,793.09 from 4,814.66. Volume surged to 32.471 million shares from 30.525 million shares.
Recovery took place on Wednesday as share prices improved on buying interest in selective scrips, notably in banks, which enabled the market to end with a positive note.
The LSE-25 index reached 4,810.80 points from 4,793.09. Volume also showed some improvement and was finally marked at 35.372 million shares compared with 32.471 million. The market moved in a bullish frame of mind throughout the day, but interest was limited to only selective chips. Allied Bank and National Bank were the prime gainers of the day while Arif Habib Securities and Adamjee Insurance were the major losing stocks.
The share market failed to maintain bull-run following profit-taking pressure, mainly in PSO and Javed Omer Vohra & Co, which shed their weight heavily, on second last trading day of the week under review. The LSE-25 index slipped back to 4,794.03 points from 4,810.80, showing a decline of 16.77 points. Turnover, however, improved to 51.565 million shares from 35.372 million.
The market mostly remained under pressure, due to profit-taking and failed to determine its course. The scrips performing outstandingly in preceding two sessions were the key victims of selling pressure with the tone remaining uncertain.
Adamjee Insurance led the gainers column while PSO underwent battering. Share values also tumbled on the last trading day of the week, as result of pressure in PSO, banks, fertilisers and insurance sector. The LSE-25 index shed 45.64 points, closing at 4,747.06 as compared to 4,792.70. Volume lowered to 43.482 million shares from 51.565 million shares.
The market opened with a negative note and pressure was seen in key banks, fertilisers and other scrips, which kept the sentiment depressed in initial trading hours. However, in second session, recovery took place, which helped the market recover a sizeable chunk of early losses. Lucky Cement and Pak Electron Limited showed strength while PSO and Javed Omer Vohra were the major losers.
"Combined Opposition's surprise move to file reference against the prime minister is a significant negative development from the market point of view, therefore, I don't see any breakthrough in the market behaviour when it resumes trading on Monday," an analyst said.
Moreover, reports of ill-practices in Bank of Punjab (whether they are correct or not) have also disappointed investors, he added. Another bad news is the constant delay in announcement of PSO bidding, having a negative impact on the sentiment.
In view of such factors, the market sentiment is likely to stay depressed and due to investors' lack of interest, volume may further come down. And any negative news from the political front will further shatter the sentiment, thus people are advised not to make decisions in haste and better to be sidelined for the time being, he added.
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