Share prices continued depicting downturn on Lahore Stock Exchange (LSE), as majority of people took to profit-taking in what brokers said 'a heavily overbought market.'
The LSE-25 index was down 26.54 points or 0.62 percent reaching 4237.52 as compared to 4264.06 points of Wednesday. Turnover descended to 73.078 million shares from 81.157 million of the previous session, posting a decline of 8.079 million shares or 9.95 percent.
Weak sentiments prevailed in the market from start of the session, and subsequently there was hardly any change in the pattern, as people booked profits at available margins.
According to stock analysts, the market was in overbought region where people saw hardly any charm for buying. Thus, they added, most of the players preferred pocketing profits that kept the market under pressure. They also pointed out that the current levels were very high, due to which, chances for a wide ranging correction were very much there. Adamjee Insurance and ICI Pakistan received fresh buying and emerged day's most attractive chips. On losers end, MCB and PSO were the hard-hit scrips.
Dr Shahid Zia, head of research at Switch Securities Ltd, said that the market was under pressure, mainly because of profit-taking that was expected to surface in the existing overbought position of the market.
According to him, shares, which are under pressure, as a matter of fact, are overpriced.
However, he pointed out, pressure is purely due to profit taking and it is not a trend reversal. "If the market absorbs this pressure and the KSE-100 index closes above 8,900 level on Friday, the trend will turn upward, he observed.
Dr Shahid Zia further said that in last week of the current month, there will be settlement for the futures, therefore, the market could undergo pressure. But other than this, there is no threat to the market, he added. The market is overbought, therefore, it is not reacting to positive corporate results, he stated.
Overall there were 97 scrips exchanging hands on the floor, of which 20 improved in worth, 30 landed in minus zone while 47 were intact to its previous levels. Among major gainers, Adamjee Insurance was up Rs 6.75, ICI Pakistan Rs 2.00, Dewan Farooq Motors Rs 1.10, DG Khan Cement and Fauji Cement Company Re 1.00 each. Those, which landed in minus column included, MCB Bank shedding by Rs 2.85, PSO Rs 2.50, Nishat Mills Rs 2.25, PPL Rs 2.10 and PICIC Commercial Bank 1.95.
Fauji Cement and DG Khan Cement were the volume leaders with 14.140 million shares and 8.034 million shares, respectively.