Activity remained dull on Lahore Stock Exchange (LSE) with fuel and energy shares and banking stocks suffering fresh losses, amid high volatility because of lacking interest from the potential investors. The LSE-25 index was down 0.6 per cent or 24.03 points, closing at 3615.92 as compared to 3639.95 points. Volume also remained on the lower side to 33.737 million shares from 48.744 million shares of the previous session, registering a fall of 15.007 million shares.
The market took a healthy start in the morning and in the first half of the session it did well on account of fresh buying in selective chips. According to stock analysts, in early hours they witnessed a good trading activity with the LSE index going up by 77 points at one stage, which raised their hopes for an aggressive activity in the post-prayer session.
But later, they added it failed to maintain the trend due to pressure in fuel and energy sector and banks, including PPL, MCB, National Bank, Sui Northern and PSO.
According to brokers, there were rumours in the market that standing committee of Senate formed on market crisis have issued notices to some members calling details of their accounts. That triggered panic in the market and it landed in negative zone. On the other end, Nishat Mills and Adamjee Insurance were among the prominent gainers.
The market has lost credibility, and the investors' confidence badly hurt, therefore, there was very little charm in the market. The Invest & Finance Securities Ltd operations head Ahmed Nabeel said, "As the month of May is approaching, which in fact called 'May Day' month - full of historic events like nuclear tests, Danka crisis, Kargil incident and now it will be SECP experimental month in which sub-accounts streamlining, margin financing trial run and budget preparations and rumours will hamper the trading."
He said the market was experiencing very tough time, as almost all corporate earnings have been announced, while privatisation would be shifted to next financial year, therefore, there was nothing to enjoy in the month of May.
About other market concerns, he said the rising interest rate was an alarming sign for the capital market as well as for the economy, because our policy markets always implement short-term policies. And if new tax was levied in the budget on capital market in any form or value added taxation on property, the major portion of black money would fly back to Dubai leaving behind liquidity crunch in the economy with manufacturing and trading activities standing stagnant and dull, he observed.
Even if the market rises in May, one should stay on sideline until and unless SECP and SBP took concrete steps for the capital market, he pointed out.
Out of a total of 73 scrips changing hands on the day, Nishat Mills gained Rs 3.90, Adamjee Insurance Rs 1.00, Pakistan Capital Market Fund Rs 0.75, Fauji Fertiliser Rs 0.45 and Zeal Pak Cement Rs 0.40. In minus zone, PPL shed Rs 3.55, MCB Rs 3.00, Sui Northern Rs 2.95, PSO Rs 1.90 and National Bank Rs 0.85.