LSE stays range-bound

The share market, the Lahore Stock Exchange (LSE), on Thursday appeared jittery since a majority of investors, including potential ones, have stayed on sidelines avoiding risks ahead of the general elections. There was hardly any change in the market's overnight pattern and it mostly remained range-bound - obviously from the declining volumes.
The LSE-25 Index declined marginally, losing 13.91 points and retreating to 4,743.83 points from past day's 4,757.74 points. Turnover slipped back to 26.376 million shares from 28.165 million, showing a fall of 1.789 million shares. The market moved in a right band because people preferred to hold positions till January 8, leading to low volumes, analysts said.
"Everybody is adopting a wait and see policy, hence, I don't see any tangible change in the market trend ahead of the elections," a broker said. He said in view of recent hefty gains a correction was also due and the market might paint a dull picture this week. On Thursday, the Crescent Steel and the Bank Al Habib led gainers while the Shakarganj Mills and the Adamjee Insurance were top among the losing stocks.
Both local investors and foreign funds are waiting for the outcome of the general elections with activity turning dull, said Javed Iqbal of the Javed Iqbal Securities Ltd. Foreign funds, who offloaded before the Eid, were also on sidelines. But he said the market sentiment was strong and after smooth transfer of power to the elected representatives the market would be back on the uphill course. "Anything untoward in this period could change the entire scenario," he added.
About news of possibility of granting powers to the Securities and Exchange Commission of Pakistan to bourses, he said such developments always created panic in the market and that no system in the world would be infallible, and chances for inadvertent mistakes were always visible. Reports appearing in the local press under the proposed draft of the 2007 Corporatisation, Demutualisation and Integration Ordinance, the Commission may be empowered to impose Rs 20 million on a bourse not complying with its orders.
Out of a total of 119 traded scrips, 23 were up, 46 landed in negative column, while 50 stayed glued to their overnight positions. Major advancing stocks were Crescent Steel which was up Rs 4.00, Bank Al Habib Rs 3.65, National Bank Rs 2.75, Pervez Ahmed Securities Rs 2.55, and Soneri Bank Rs 2.15.
In negative column, Shakarganj Mills shed Rs 9.15, Adamjee Insurance Rs 6.30, Pak Suzuki Motors Rs 6.05, MCB Bank Rs 4.60, and PSO Rs 4.55. JOVC led the market in terms of volume with 2.979 million followed by Bosicor Pakistan with 2.963 million shares.