The bearish spell continued on the Lahore Stock Exchange (LSE) for the second consecutive week, which further underwent a loss of 3.76 percent amid descending transactions volume, on account of news of imposition of emergency in the country.
The market remained in the grip of rumours regarding the possibility of Supreme Court decision against President Musharraf and imposition of emergency in the country during the week under review.
The Lahore equity market suffered a heavy blow during the past week, following multiple rumours, which kept people in a confused state of mind, analysts said. It was under immense pressure during the first two sessions, while on the third day it recovered on technical grounds, they added. However, in last two sessions it again fell victim to rumours, losing 144.59 points, they said. The LSE-25 index, during the week, suffered a loss of 3.76 points to finish at 4,625.19 from last closing of 4,805.98 losing, 180.79 points. Overall volume lowered to 26.483 million shares from 30.218 million, depicting a fall of 3.735 million shares.
The market was range-bound on Monday for lack of interest. The LSE-25 Index closed at 4,769.77 points compared to its previous closing of 4,805.98, showing a fall of 36.21 points. Turnover was almost static at 30.849 million shares as against 30.218 million of Friday last. The market moved in plus and minus columns amid a tight range and finally finished the first day of the week with a weak note. Activity was, however, seen in some oil sector and securities shares while the broader market stayed flat. Attock Refinery topped gainers' column while Uniliver Pakistan emerged as the major loser.
The market extended the gains and underwent heavy battering on Thursday shedding 146.04 points. The LSE-25 Index finished at 4,623.73 points compared with previous 4,769.77 points. Turnover reached 30.674 million shares as opposed to 30.849 million shares. The share market registered 3.15 percent improvement in its worth on third day of the week, following an across the board buying interest from local institutions and foreign funds.
The LSE-25 Index reached 4,769.78 points from 4,23.73, ending with a gain of 146.05 points. Turnover mounted to 37.083 million shares from 30.674 million of the past session, posting a rise of 6.409 million shares. After lightening its weight a day back, the market recovered as big players took advantage of the situation and picked stocks of their choice at the attractive prices. Adamjee Insurance led the gainers' proceedings while Arif Habib Securities topped the losers.
Share values failed to maintain the rising tempo on the on second last day of the week, following massive selling pressure in the broader market. The LSE-25 Index reached 4,635.40 points from 4,769.78, registering a fall of 134.38 points. Overall turnover totalled 32.528 million compared with 37.083 million, registering a fall of 4.554 million shares. Bears got control of the driving seat soon after the open and then there was no let-up in the pressure seen in all blue chips.
Brokers described bad law and order problem and political uncertainty as major cause of the pressure, paying havoc with shares values. Rumours of possibility of imposition of a state of emergency in the country added to the uncertainty of the market. Share prices moved both ways on the weekend, however, fresh buying in MCB and Adamjee Insurance curtailed the loss limit. The LSE-25 index depicted a marginal loss of 10.21 points to 4,625.19 from 4,635.40 points.
Volume was registered at 26.483 million shares compared with past session's 26.483 million, decreasing by 6.045 million shares. The market showed weak sentiments soon after its opening amid rumours of a strong possibility of imposition of a state of emergency in the country.
The market is expected to react to the imposition of emergency in the country and might undergo a heavy blow when trading resumes on Monday, an analyst said. Under the given situation investors will go on sideline, leading to further decline in the already low volumes. The next week is very crucial for the market and foreign funds might also go for selling and that could cause a panic-like situation in the market. Thus, in view of prevailing uncertainty, traders and small investors should adopt a cautious approach and stay on sidelines for the time being, he viewed.
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