The share market on Thursday extended overnight losses as selling pressure intensified mainly because of what analysts say political reasons and future settlement problems. The LSE-25 Index closed at 4,717.70 points against 4,760.48, depicting a fresh fall of 42.78 points.
Turnover was almost flat at 18.731 million shares compared with Wednesday's 18.876 million shares. Since there was no support from potential investors, the market remained mostly under pressure. Brokers said they were expecting a positive turn of the market because of three day's constant selling pressure, but the trend failed to change and pressure further deepened. In view of Pakistan People's Party leadership's unclear stand over the issue of restoration of judges, with the spirit of the Murree Declaration, investors were tensed.
"Tomorrow is the last trading day and they see no let-up in the pressure," the analysts said. "Today, refineries, the auto sector, and partially exploration companies scrips resisted pressure and added to their values, considerably while the insurance sector, major banks and fertilisers registered declines."
"Political reasons of course are a disturbing factor for the market sentiment but now the investor is more nervous because of future settlement issues," said Amer Hussain Khan of the Invest and Finance Securities Limited.
He said the future settlement amount had increased from Rs 8 billion to Rs 29 billion following increase in the number of scrips for future market. "Therefore, I understand settlement is the real disturbing factor the market these days," he said. "Below expectation results of some of the scrips, particularly in the insurance sector, have also affected the sentiment."
He said there were also reports of foreign investment outflow from the market, which was also a source of disappointment among the local investors. He said at present only intra-day traders were showing presence while there was no long-term investment. "I believe it is not time for long term investment and till settlement of the political issues, people should adopt a careful approach and prefer day trading," Hussain added.
Out of a total of 116 traded scrips, 20 moved upwards, 51 declined while 45 were intact to their previous levels. Among major gainers, Attock Refinery was up Rs 13.15, Indus Motors Rs 11.85, Millat Tractors Rs 9.55, Pakistan Reinsurance Company Rs 7.15 and PPL Rs 3.15. In negative column, Adamjee Insurance was down Rs 19.10, Engro Chemical Rs 14.00, PSO Rs 10.10, MCB Bank Rs 9.50 and Pak Suzuki Motors Rs 7.95. Bank Alfalah and Pervez Ahmed Securities led the market by volume with 2.251 million and 1.467 million shares.
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