Stocks drift lower on LSE

Investors' nervousness, during the week ending on May 3, 2008, due to political uncertainly over the issue of the deposed judges marred activity on the Lahore share market where stocks drifted lower, depicting a loss of 147.73 points, or 3.09 percent, in the index.
Besides political reasons, below expectation results of a number of companies also affected the market sentiment and it mostly traded under pressure. Except for the first day, when the market showed positive signs, equities remained under pressure, with investors appearing tense over what the analysts said was 'lingering political uncertainty.'
Change in the management of the Bank of Punjab and quarterly losses added to the worries of the market players, a broker said. The new management announced disappointing results with net loss exceeding Rs 3 billion for the first quarter of the calendar year. The results of the bank affected not only the banks, but also the entire market, he said.
It was a four-day week as the market was closed on Thursday on account of May Day. Turnover, with a fall of 5.567 million shares, amounted to 15.068 million compared with 20.635 million shares of previous week.
On Monday, the market opened on an optimistic note and share prices moved ahead with growing buying interest in oil sector on possibility of further increase in the prices of petroleum products.
The LSE-25 Index, with a gain of 21.47 points, finished at 4,788.60, from 4,767.13 points. Turnover was almost flat at 20.713 million shares as against 20.635 million shares. The market behaved well, showing good movement in select scrips. Activity, however, remained limited to only oil sector scrips, which added to their worth handsomely. The broader market was not much active because of prevailing political uncertainty.
Sluggish trend prevailed on Tuesday with banks leading the declines because of investors' dissociation from the market. The LSE-25 Index fell by 64.69 points to 4,723.91 from 4,788.60 points. Volume retreated to 20.531 million shares from 20.713 million shares.
On Wednesday, share values received more losses following news of political deadlock over the issue of judiciary and disappointing quarterly results of the Bank of Punjab. The LSE-25 Index ended at 4,648.50 points as against 4,723.91, registering a net fall of 75.41 points. Volume rose by 4.278 million shares to reach 20.531 million from 16.253 million shares. The market treaded the downward course since people awaited the outcome of the talks between Nawaz and Zardari in Dubai. People avoided taking long positions ahead of a public holiday on Thursday. Pakistan Refinery topped gainers while Indus Motor led declines.
The market was closed on Thursday. On Friday, trade activity remained sluggish as equities tumbled and the LSE-25 Index lost 29.10 points, closing at 4,619.40 compared with 4,648.50 points. Turnover shrank to 15.068 million shares from 20.531 million of the previous day, registering a decline of 5.463 million shares The news regarding preparation of a new tax regime for refineries also affected the market sentiment.
With the much-awaited announcement about restoration of judges through a resolution, the uncertainty ended, and the market is likely to show positive signs in the coming week, analysts said. However, a broker said that market players might wait till May12, the day for tabling resolution in the National Assembly.
"The announcement for restoration of judges is a positive development and the market could celebrate it on Monday, but I don't expect sustainable rally," a broker said, adding that the market was likely to remain volatile till the announcement of federal budget.
The news that the Ministry of Petroleum has prepared a new tax regime for oil refineries shocked investors and they feared more bad news, he said. People are advised to keep their positions in limits, and play carefully till the budget is announced, another broker said.