Share values were depressed on Lahore Stock Exchange (LSE) on last trading day of the week, on account of a technical correction, that forced the index to shed approximately one-percent, with also a visible decline in turnover.
The LSE-25 index closed at 3,916.28 points as against 3,957.38 of Thursday, posting a loss of 41.10 points or 1.03 percent. Trade turnover retreated to 66.195 million shares from 84.713 million of the previous session, registering a fall of 18.517 million shares or 21.858 percent.
The market showed a rough and confused behaviour from outset of the trading that disturbed the sentiment.
According to brokers, the market was overbought, therefore a technical turn was expected on the weekend. However, they described no other reason for the day's equity fall, and pointed out that there was nothing wrong with the fundamentals of the market.
According to analysts, next week's behaviour of the market will determine whether it was overbought or not. If the correction continues on Monday, it means the market is overbought. National Bank and cements were the major gainers, while PSO and Adamjee Insurance perceived losses and ended at a weak note.
Ahmed Nabeel, head of operations, Invest & Finance Securities Ltd, said the market presented a confused outlook on Friday, adding, no doubt every one was expecting a technical correction, but the way it behaved was terrible. However, despite such a trend, investors remained calm, he added. Oil sector, he maintained, got a real bashing from the bears, while oil prices in the international market slipped to 63 dollars per barrel. Major trend setter for the week was PTCL which lost almost Rs 2.25 in a week's time due to the rumours that payment from Etisalat might be delayed by few months and their team was coming for a final round of talks, he pointed out.
He further said that banking sector showed a mixed trend, with National Bank registering fresh gains, whereas Bank of Punjab and MCB Bank lost one rupee each. Fundamentals of banks are strong, based on
their profitability, and they may gain further after observing some correction. As far as cement sector is concerned it remained the star performer of the week, soaring approximately by 10 percent as whole, with Pioneer, Maple Leaf and DG Khan performing outstandingly, he stated. "I believe, the market needs to undergo correction by another 100 points to achieve a new milestone, provided badla and overbought position eased out," Ahmed Nabeel observed.
In all, 86 scrips changed hands on the floor, of which 11 were up, 29 down, while 46 were stable. In positive zone, National Bank improved by Rs 1.20, Lucky Cement Re 1.00, Maple Leaf Cement Rs 0.90, Zeal Pak Cement Rs 0.65 and Pakistan Cement Rs 0.30. In minus column, PSO lost Rs 8.65, Adamjee Insurance Rs 7.00, Pakistan Oilfields Rs 6.20, PPL Rs 4.65 and Engro Chemical Rs 4.10.
D.G. Khan Cement and PTCL were the volume leader with 12.105 million and 10.007 million shares, respectively.