A bearish trend continued on the Lahore Stock Exchange (LSE) on Thursday, where equities received yet another 1.12 percent loss, amid political rumours and growing uncertainty among the market people. The LSE-25 index, with a net loss of 48.78 points, ended the day at 4,296.48 points compared with previous 4,345.26 points.
Trade turnover retreated to 19.658 million shares from 26.896 million shares the previous session, posting a decline of 7.238 million shares. Uncertainty caused by political rumours gripped the market and it underwent losses for the third consecutive session with the declining stocks taking the lead, brokers said.
Everyone in the market appeared in a confused state of mind fearing further deterioration in the political situation, which led the equities to tread a downhill course, they added.
OGDC was the only key stock registering increase in its value while majority of prime chips received losses with Adamjee Insurance and Attock Refinery receiving a heavy blow.
The market is beleaguered by negative news coming from the political front while threats from donor countries to stop aid have sent shock waves amongst the already frustrated investors, said Javed Iqbal, chief executive, Javed Iqbal Securities Ltd, while commenting on the market behaviour.
All donor countries, including Japan, have threatened President Musharraf of halting aid in case he failed to lift the emergency from the country, said Javed Iqbal.
On Monday, the term of the current national and provincial assemblies is also expiring and rumours of resignation of General Musharraf are still roaming around the market, he said. The people are confused about the possible future set-up of the country and the market is solely depending on the political news and rumours due to which all fundamentals have gone in the backdrop, said Javed Iqbal.
"Such a state of affairs is disappointing for the investors, therefore, the resident should take no decision which is against the interest of the country, he added. Stoppage of aid from Japan and other big donors will not only prove disastrous for the capital market, but for the entire economy of the country," he added.
Overall, there were four gainers against 64 losers with 38 remaining intact to their previous levels, of total 106. In positive column, OGDC gained Rs 1.20, Pak Strategic Allocation Fund and Pakistan Industrial Credit 10 paisa each, and IGI Investment Bank Ltd 5 paisa.
In red zone, Adamjee Insurance shed Rs 17.65, Attock Refinery Rs 12.05, Millat Tractors Rs 10.00, and Engro Chemical Rs 8.35. Attock Refinery and JOVC were the volume leaders with 2.134 million and 1.681 million shares respectively.
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