The local stock market showed negative vibes on Thursday for lack of investors' confidence, especially foreign funds, either keeping themselves away or offloading their positions due mainly to political instability in the country.
Activity was very low from initial to late hours in the session, with all key scrips staying subdued on account of pressure from the potential investors.
Analysts said in view of positive closing and a smart recovery in the past session, the market players were expecting a positive change in market trend, but it behaved quite otherwise which disappointed them. The LSE-25 index ended the session at 4,426.99 points versus past day's 4,459.57, dropping 32.58 points. Volume increased to 29.150 million shares from 25.910 million, depicting an increase of 3.239 million shares.
Brokers said the chances for a recovery were distant in the coming sessions as the people might opt for massive offloading on the weekend. The prevailing political scenario has forced people to be very careful in future deals, thus possibility for an immediate recovery is distant. However, they said news about return of Nawaz Sharif and Benazir could cause spark in the market.
The sentiment started depressing shortly after the opening of the market and all blue chips showed a dismal situation in absence of big players, said Mirza Muhammad Irfan, equity research head, Capital Vision Securities Limited. "The main reason for weak trend of the market that seems to me is the outflow of foreign investment," he added.
He said most of key scrip stayed depressed and Askari Bank, despite its very good half yearly results failed to make any heady way. As results show the bank's per share earning for the six months comes to Rs 4.96. However, Javed Omer Vohra & Co, Saudi Pak Commercial Bank and Sui Southern received fresh buying and reached their upper circuit breakers, he said. About surge in Sui Northern, Irfan said reports of its Rs 3.5 billion expansion plan had generated fresh interest in it. Declining stocks outnumbered advancers by a ratio of 43 to 23 with 46 unchanged of a total of 46 scrips changed hands during the session.
Among prime gainers, Engro Chemical was up Rs 5.00, Javed Omer Vohra & Co Rs 3.85, Attock Refinery Limited Rs 3.85, Indus Motors Company Rs 1.90, and Allied Bank Rs 1.75.
In the negative zone, Adamjee Insurance declined by Rs 5.50, National Bank Rs 4.55, United Bank Rs 3.40, PSO Rs 3.40, and Nishat Mills Rs 3.35. Bank Alfalah led the market by turnover with 5.424 million shares followed by Arif Habib Securities Ltd Rs 4.309 million shares.
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