Equities eroded values across the board amid a record low trading turnover due mainly to lack of interest on the part of investors as well as institutions on the Lahore Stock Exchange (LSE). The LSE-25 index shed 35.94 points and closed at 3758.24 points as against 3794.18 points of Wednesday while the transaction volume further fell to 425,800 shares compared with a day's earlier trading of 836,500 shares.
The market giants, including PSO, Pak Oil Fields, Attock Refinery, PPL, and OGDC from the oil sector, MCB Bank and Saudi Pak Commercial Bank, and National Bank from the banking sector remained under pressure. Only Maple Leaf Cement registered marginal gain and closed in green zone.
While continuing overnight sentiments, the market opened on highly depressed note and remained lacklustre throughout the day in the absence of buyers that resulted in historically low trading turnover. The institutions and investors are still reluctant to provide support to the market due to ongoing political situation in the country, said Javed Iqbal of Javed Iqbal Securities while commenting on the market sentiments.
The new reforms, under which lower cap limit decreased from five to one percent and upper cap limit increased from five to 10 percent, could not help bring improvement in the market situation. Though, the new rules averted rapid fall in the index and shares' values as well, they restricted the trading volume to less than half million shares. In the absence of new rules, the market could have crashed, he added.
He attributed the judges' restoration issue, deteriorating law and order situation, operation against the militants in Fata for the ongoing bearish trend, saying the situation would not improve till the judges reinstatement.
"We don't foresee the foreign investors to come to Pakistan in the absence of an independent judiciary", he added. Under the present situation, every investor is trying to get out of the market while those who had already lost their all money in the stocks business, don't have courage to enter the market, he maintained. Out of a total of 88 active issues, two companies registered gains, 31 went down, while 55 companies closed at their previous levels.
Among gainers, JDW Sugar Mills improved by Rs 3.50, while Maple Leaf Cement and Nimir Resins Limited gained 56 paisa and 40 paisa respectively. In the minus column, PSO lost Rs 4.25, Pak Oil Fields declined by Rs 3.60, MCB Bank depreciated by Rs 3.21 while Engro Chemical and Attock Refinery were down by Rs 2.73 and Rs 2.46, respectively. OGDC was the highest trading company whose 114,400 shares changed hands while Dandot Cement remained runner up with 100,0000 shares.
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