Downtrend continues on LSE

Downward tendency continued on Lahore share market during the week ending on November 10 with LSE-25 index losing 4.7 percent to finish below 4,500 points mark amid mounting pressure from international community on Pakistan for early lifting of emergency and holding general elections.
Investors' growing concerns were that the US and EU could clamp economic sanctions on Pakistan if it failed to hold elections as announced earlier. This kept activity very limited in the market.
Analysts said that due to local investors' lack of interest, volume dwindled which was a concerning factor for market players. Political rumours dominated the market and did not allow the market to settle down. A strong rumour that vice chief of army staff had taken over the country's affairs and General Musharraf had been put under house arrest led to steep equity falls on the first day of the week.
Partial recovery, however, took place but, overall, the week proved disastrous for the market. The LSE-25 index shed 218.66 points retreating to 4,406.53 from 4,625.19 points. Turnover slipped to 26.483 million shares from 24.277 million shares. Brokers expressed fear that the market could receive yet another shock during the coming week, if the political state of affairs went unabated.
Uncertainty, caused by fears of economic sanctions by US and other countries, marred trade activity on first day of the week, where equities lost 227.09 points. The LSE-25 index closed at 4,398.10 points compared with its last closing 4,625.19. Volume was down to million 22.765 million shares from 26.483 million.
The market opened with a bearish note and then was hit hardest by the selling pressure with equities falling like ninepins. At one stage, recovery took place with the support of institutional buyers, but the market again came under pressure. The rumours that President Musharraf had been put under house arrest and General Kayani had taken over the charge of the army chief triggered panic selling.
Trade activity was range-bound on the second day since the players after past day's unprecedented falls. The LSE-25 index improved by 38.87 points to 4,436.97 from 4,398.10 points, whereas turnover increased to 30.661 million shares from 22.765 million shares.
Share values moved erratically on the third day amid low volumes, resulting from lack of interest in the broader market, however, late buying in oil sector helped the index finish with a fractional improvement. The LSE-25 Index closed at 4,442.81 points compared with 4,436.97. Volume showed a downward movement and was registered at 25.075 million shares as against past day's 30.661 million. The market moved sideways amid lack of support from the main players resultantly activity was low throughout the day.
Pakistan Oilfields and ICI Pakistan were the top gainers while Siemens Pak Engineering and Adamjee Insurance led the losers' column. The share market turned mixed with business activity staying subdued because of indifferent attitude of the local investors, on last day of the week under review. The market was closed on Friday on account of Iqbal Day. The LSE-25 Index lost its worth by 36.28 points to 4,406.53 form 4,442.81 points. Turnover further retreated to 24.277 million shares from 25.075 million of the preceding session.