Share values on the Lahore Stock Exchange (LSE) on Friday extended overnight losses with oil sector, banks and fertilizers showing poor performance, forcing the index to fall amid record low volume. The LSE-25 Index closed at 3,901.03 points from 3,936.01 points of Thursday, depicting a loss of 34.98 points.
The volume declined by 9.046 million shares to 1.225 million shares from 10.301 million shares. The market opened under selling pressure as people engaged in settling positions for June futures. It was last day for settlement for June Futures. Therefore, all concerned remained busy in settling positions while others stayed away, due to which the volume was extremely low, brokers said. People were much perturbed over the low volume, which was a clear indication of main players' distrust, they said.
Moreover, SCRA outflow was also showing selling from foreign investors. The market was dull because of lack of confidence following political reasons and rumours about further changes in the regulatory framework, analysts said. However, they said that any change made in consultation with the brokers' representative would have a healthy impact on the market.
The market opened on a negative note with all prime chips opening with lower circuit breakers, said Mirza Muhammad Irfan of the Capital Vision Securities. He said that falls were limited because of reduction in the lower circuit breaker limit. Political unrest and disappointing reports about the country's economic outlook were also discouraging factors.
There were strong rumours about further revision in the upper and lower circuit breakers limits, Irfan said. "There is anticipation of reduction in the upper lock limit from existing 10 percent to 7.5 percent and increase in the limit of lower limit from 1 to 2.5 percent. But ban on short-selling is expected to continue. If this is so, the market could further recover. Personally, I understand only foreign buyers' interest could help the market. Otherwise existing circumstances for major breakthrough at least in the near terms seem were distant," he said.
Out of total 90 active issues, only 6 were up, 42 down, and 42 stayed unchanged. In positive zone, First Capital Equities was up Rs 12.69, Saudi Pak Commercial Bank Rs 1.28, Pak Elek Non Convertible Re 1.00, Honda Atlas Cars Rs 0.34 and Pakistan Premier Fund Rs 0.22. In negative column, PSO was down Rs 4.25, Pakistan Oilfields Rs 3.74, MCB Bank Rs 3.34, Engro Chemical Rs 2.84 and Adamjee Insurance Rs 2.77.
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