The local share market failed to maintain bullishness prevailing since start of the week on Lahore Stock Exchange (LSE), where stocks slipped on the last trading day of the week, mainly because of profit-taking from institutional side, which forced the index to close in minus zone.
The LSE-25 index retreated to 2,789.38 points from last day's 2,812.63, showing a net decline of 23.25 points. Volume, however, showed a significant upward movement on account of massive selling and was finally registered at 111.272 million shares as compared to Thursday's 87.595 million shares, registering an increment of 23.677 million shares.
Trading began with a positive note and the market maintained the overnight rising tempo in early session but subsequently heavy selling from institutions caused pressure that placed the index in minus zone.
According to brokers, early session good trading pleased the investors and they expected a hectic buying activity during rest of the trading hours, but profit-selling, particularly emerging from institutions including a major fund disappointed them.
In last minutes, the market partially recovered but failed to re-enter the positive zone, they added. However, despite heavy profit-taking, Nishat Mills maintained the upward tendency and added fresh gain to its worth followed by Union Bank and Hub Power. On loser end, oil and gas sector received major blow and ended weaker.
According to market pundits, though the market remained under pressure most of the day, upward tendency in Hub Power raised the hopes of the investors. Hub Power has remained dull since long time but on Friday it did well that are very significant as far as the future outlook of the market is concerned, they viewed.
According to Mirza Muhammad Irfan, equity research head, Capital Vision Securities Ltd, the market was in plus column in initial hours and then the index surged by 40-point, but later it fell prey to pressure, notably in fuel energy sector. He said the downward movement began by SNGPL and later it spilled over to other key shares.
Nishat Mills performed well while banks also rose in last minutes. At one stage, pressure was so heavy that it pushed the market down by 80-point all of a sudden, however, later the market started recovering that averted a major downfall, enabling the index to end with a reduced decline.
The KSE index, he pointed out, came down after touching 5,660 points level and if the market succeeded to stay at this point, there could be strong chances for recovery on Monday.
He further said that the market has been showing an aggressive tone with the index touching new highs in last 3-4 sessions that lured traders and investors to build up heavy positions amid hopes of further rise in prices.
Moreover, the market was also in dangerous zone in terms of badla amount due to which correction was also overdue, Irfan further pointed out. However, he said that there was no negative news in the market and the day's downfall was due to institutional selling coupled with routine weekend pressure.
Overall 85 scrip changed hands on the day of which 10 closed in plus zone, 34 showed negative signs while 41 maintained its overnight positions. Among prime gainers, Nishat Mills gained by Rs 2,80, Union Bank Rs 0.90, Hub Power Rs 0.85, Southern Electric Power Rs 0.80, and Worldcall Communications Rs 0.60. In negative zone, PSO was down by Rs 3.15, PPL Rs 2.30, ICI Pakistan Rs 2.15, MCB Rs 1.75 and Picic Growth Fund Rs 1.40.
Sui Northern was the volume leader with 25.747 million shares turnover followed by Nishat Mills with 22.260 million shares.