Share prices on Lahore Stock Exchange (LSE) Wednesday dropped following heavy selling pressure emerged in last minutes that forced the index to shed 72 points amid improvement in the turnover. According to stock analysts, the late session profit-selling played havoc with the market pushing the LSE-25 index to negative zone, which finally ended at 2719.26 points as against 2791.32 of Tuesday, posting a loss of 72.06 points.
Due to heavy pressure, there was improvement in overall turnover, which at the close stayed at 63.642 million shares as compared to 53.606 million, registering an increase of 10.035 million shares.
According to traders there was nothing against their expectations in initial hours, as the market took bullish start, and afterwards maintained the upward tendency most of the day. But the profit-taking in last minutes changed the market mood forcing the index to land in the negative zone, they added.
They said the fuel & energy sector and chemicals, including ICI, PPL and OGDC, etc were the prime victims to profit-taking, adding fertiliser and cement stocks, however, continued to tread upward course with inflating values.
Some brokers said that growing prospects of a political movement by opposition parties was also factor that led to the bearish sentiment. Moreover, the market people were also scared of law and order problem in the market due to which the market has turned sideways, they said.
Dr Shahid Zia, head of Research at Switch Securities, while giving his views over the market behaviour, said the Wednesday's downfall could solely be attributed to the profit-taking, as there was no bad news in the background, adding in initial hours, the market performed pretty well, but last minutes pressure disturbed the entire sentiment.
"I think the market, after last day's surge, has taken a technical breather and consolidated itself near 5508-point level", he maintained.
"As there is no bad news while the corporate results are also encouraging, thus I see a positive market scenario ahead," he viewed.
No doubt the market is fundamentally strong and faces no internal threat, but the emerging political scenario in which all opposition parties are set to join hands against the government on the issue of uniform may disturb the market, a broker said.
Moreover, investors are reluctant to take long position fearing suicidal bombings during Ramazan. In view of above reasons, the market is expected to remain sideways in Ramazan, he viewed.
Out of a total of 86 traded scrips, 12 improved their worth, 26 landed in negative zone, while 48 maintained its overnight price levels.
Among prominent gainers, Fauji Fertiliser was up Rs 2.00, Dewan Farooq Motors 65 paisa, Fauji Fertiliser Bin Qasim 40 paisa, DG Khan Cement and Faysal Bank 30 paisa each.
In negative column, ICI Pakistan shed Rs 2.30, PPL Rs 1.55, OGDC Re 1.00, Nishat Mills 95 paisa, and Askari Commercial Bank 70 paisa.
Fauji Fertiliser Bin Qasim and DG Khan Cement were the most active scrips in volume with 13.428 million and 7.864 million shares, respectively.