Equities closed lower on the Lahore Stock Exchange amid descending transaction volume owing to lacking interest on the part of small investors on Tuesday.
The LSE-25 index lost 12.30 points and was closed at 2751.30 against 2763.60 of Monday, while trading turnover decreased to 50.444 million shares as compared with 68.224 million shares traded a day earlier. PSO, ICP SEMF, D.G Khan Cement, and Dewan Farooq Motors provided support to the market, while Adamjee Insurance, OGDC, Bank of Punjab, Dewan Salman Fibre and PIAC remained under pressure.
The market opened on a healthy sign and remained in positive zone for some time. As soon as the investors started offloading to pocket the margin, a selling pressure was seen that dragged the market into negative zone.
The market was lacking small investors' support and thus could not get momentum despite the encouraging news in the bourse.
Kuwait Petroleum has again shown its keen interest in PSO, and contacted with the high ups of Pakistani Ministry of Petroleum and Privatisation Commission.
The investors perceived that the Kuwait Petroleum could have given its consent for taking part in the bidding process, said Ahmad Nabeel of Invest and Finance Securities, while commenting on the market sentiments.
The market experts were of the view that PSO privatisation could show positive outcome in a month or so. As a result, PSO improved by Rs 3.40 that reflected the buyers' interest, he maintained.
The cement sector has become attractive for the investors following increase of production quota from 80 to 83 percent.
If the ongoing demand for cement continues, the quota is expected to be increased to 100 percent. Besides, cement prices have gone up by Rs 7, which also encouraged the investors to stay on buying course, he maintained.
Following recent visit of British Foreign Secretary Jack Straw and scheduled visit of US Secretary of State Colin Powell on March 17 and President Pervez Musharraf's visit of Saudi Arabia forced the investors to believe that whatever development on economic and political front would take place, that would be in best interest of Pakistan' he opined.
Declining stocks were ahead of advancing ones as out of a total of 104 active issues, 19 companies registered gains, 26 closed in negative column, while 59 stayed glued to their previous levels.
PSO improved by Rs 3.40, Dandot Cement gained Rs 1.50, ICP SEMF and Soneri Bank were up by Rs 1.45 and Re 1.00 respectively.
Fauji Fertiliser lost Rs 3.00, Admajee Insurance declined by Rs 2.70, while OGDC and Mashreq Bank were down by Re 0.60 and Rs 0.54 respectively.
Bosicor Pakistan was the market leader whose 5.646 million shares changed hands, followed by OGDC with total transaction of 5.568 million shares.