Share prices underwent heavy battering on Lahore Stock Exchange (LSE) on Monday, due to what the analysts said 'deteriorating law and order problem' in the wake of Lal Masjid tragedy. The LSE-25 index shed 88.48 points (1.79 percent) reaching 4,842.49 points from 4,929.97 of the previous closing.
Turnover also came down drastically to 43.633 million shares from 63.596 million, depicting a decline of 19.962 million shares (31percent). With heavy falls in insurance, key banks and petroleum shares, the market showed negative vibes amid declining turnover.
According to analysts, the recent incidents of suicidal attacks in Swat and DI Khan, which reportedly claimed 40 lives, triggered panic in the market. Local Taliban move to scrap peace accord with the government was also a reason for the depressed sentiment, they added.
Further, there were still regarding issuance of notices to JOVC and Arif Habib Securities by the Securities and Exchange Commission of Pakistan (SECP), seeking explanation for their enormous surge in the recent days, they said.
However, some analysts said these were just rumours and no such notice had been issued to any of them. Today, the market traded under immense pressure and Adamjee Insurance and MCB suffered massively. However, the provisionally listed HBL share significantly improved on hopes of success of its IPO. Attock Refinery and fertilisers also fared better.
The incidents of Swat and DI Khan, rumours of inquiries against some security and funds by the SECP and delay in PSO privatisation led the market to downward direction, Mirza Ejaz Ullah Baig, director, Capital Vision Securities Ltd, said.
Moreover, the market was overbought and a technically correction was due, he added. About the recovery of the market, he said, oil and gas sector still had room for improvement. There are also rumours about formation of cartel by the cement manufactures and, if it happens, the cement shares prices could shoot up, he viewed.
In all, 125 scrips changed hands today, of which, 11 were up, 58 landed in minus column while 56 were intact to their previous levels. Among major gainers, Habib Bank was up Rs 9.15, Attock Refinery Rs 7.00, Engro Chemical Rs 5.10, Fauji Fertiliser Rs 1.35, PICIC Commercial Bank Rs 0.35.
In red zone, Adamjee Insurance shed Rs 13.00, MCB Bank Rs 10.20, PPL Rs 5.75, PSO Rs 5.00 and UBL Rs 4.40. Fauji Fertiliser Bin Qasim and Bosicor Pakistan led the market by volume with 9.495 million and 3.150 million shares, respectively.