LSE index down 12.99 points

23 Jul, 2004

Share values slid on Lahore Stock Exchange (LSE) following profit-taking, leading the index in downward direction with declining volumes, indicating lack of interest from potential investors in the market.
The LSE-25 index recorded a loss of 12.99 points to close at 2815.84 as compared to 2828.83 of Wednesday. Overall turnover retreated to 55.921 million shares from 74.339 million of the previous session, registering a decline of 18.417 million shares.
The market opened above last day's closing level, with an encouraging buying interest in selective chips, especially in banking stocks. However, late profit taking surfacing in oil and gas sector and banks' stocks led to erosions.
According to stock analysts, there was also lack of interest on the part of potential investors currently busy in subscription of PPL shares, which has resulted in thin volume.
On Thursday, the last day of the PPL subscription shares, heavy rush of public was witnessed in different bank branches in the provincial capital.
Analysts said that so far the PPL had received an enthusiastic response from the public.
Commenting on the day's erosions, Amir Baloch of Invest & Finance Securities Limited said in the last few sessions, the market had added around 60-70 points to its worth, therefore, a technical correction was due.
In early session, the index was up by 30 points, but in the last minutes, it started declining because of profit selling. However, he pointed out that the market showed weak signs on the basis of technical ground and there was no negative factor behind the downslide.
He said that the banking sector, which has been in the spotlight since many sessions, dominated the proceedings on the day while ICI and oil and gas sector fell victim to profit-selling.
At one stage, interest was also observed in oil and gas sector, especially in the Oil and gas Development Company (OGDC) and Pakistan State Oil (PSO), but they failed to provide a visible support to the index, he added.
Sentiment was positive on hopes of good results of June closing of corporate sector, and cement sector was likely to continue focus on activity in next sessions as the investors' anticipated further rise in its demand on hopes of positive news regarding government policy on dams, he further said.
There were also strong rumours in the market that the PSO might announce bonus for its shareholders, Amir Baloch maintained. Investors were also hopeful about banks' results, which indicates that the interest in banking and financial sector might further mount, he observed.
There were 13 gainers against 31 losers with 51 staying stable, out of 95 scrips changing hands on the floor.
Among the prime gainers, Bank Alfalah soared by Rs 2.10, Pakistan Industrial Credit Rs 1.55, Picic Commercial Bank and Crescent Standard Investment Bank Rs 0.60 each and Fauji Fertiliser Rs 0.25.
In the minus column, ICI Pakistan was down by Rs 3.85, PPL Rs 2.35, Crescent Textile Mills Rs 2.10, PSO Rs 1.85 and Union Bank Rs 1.30.
The Bank of Punjab was the volume leader with 12.263 million shares followed by the OGDC with 7.197 million shares.

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