Share prices received widespread losses and the market went down 2.63 percent on Monday, due mainly to problems reportedly relating to conversion of in-house badla into CFS, falling oil prices in international market and delay in floating of OGDC GDRs.
The LSE-25 index fell to 4334.53 points from 4451.88 points of the previous session, registering a net loss of 117.35 points or 2.63 percent. According to analysts, the index did not present the true picture because of error in the KSE software regarding the rate of Arif Habib Securities Ltd. The volume was alarmingly low to 20.820 million shares from 41.289 million shares, depicting a decline of 20.469 million shares or 50 percent.
The market painted a dull picture during the entire session with the index moving down drastically, stock brokers said, adding the problems of conversion of in-house badla to CFS and below expectation rate of OGDC GDRs were factors causing disappointment among investors.
The index on Monday did not present true picture because of failure of the KSE to adjust the rate of Arif Habib Securities Ltd, an analyst said, adding, the error was that instead of ex-rate (Rs 243), actual rate Rs 442 was fed in the software erroneously, which showed the 80 points more decline in the index than the actual fall. Buying interest was seen only in PSO and some low profile scrips, while falls were widespread.
The market made a positive opening, but subsequently came under pressure due to problems of in-house badla positions, political disturbance following the MMA threats of tendering resignations, falling oil prices in the international market, and above all uncertainty and confusion with regard to forensic report, Javed Iqbal, chief executive of Javed Iqbal Securities Ltd, said. Everyone seems to be inquisitive about the findings of the forensic report and wants to know a clear picture, he added. The market is expected to continue showing a rough behaviour until the report is disclosed to the public, he viewed.
Moreover, he said, the people are very tense about delay in float of OGDC's GDRs and they are awaiting final announcement in this regard. There are also reports about further delay in this regard. However, there is nothing negative with the economic fundamentals and Pakistan holds a strong position at the international level, therefore, "I am very optimistic about the market and seeing its long-term outlook quite positive."
There were 13 gainers against 43 losers with 65 unchanged, of 121 total traded scrips during the session. Among key gainers, JDW Sugar Mills Ltd improved by Rs 8.20, PSO Rs 1.80, KASB Bank Rs 1.60, DS Industries Rs 1.05 and Engro Chemical Re 1.00. In minus column, Arif Habib Securities Ltd shed 22.00, MCB Bank Rs 10.00, Pakistan Oilfields Rs 8.00, PPL Rs 5.80 and Union Bank Rs 4.40. Crescent Commercial Bank and Bank of Punjab were the volume leaders with 2.708 million shares and 2.010 million shares, respectively.