Share prices declined on the Lahore Stock Exchange (LSE) on Wednesday following profit-taking, notable in the banks and insurance sectors, resulting in an 0.8 percent fall in the index. The LSE-25 index fell to 4,754.41 points from 4,795.16, showing a decline of 40.75 points.
Turnover retreated to 32.037 million shares from 34.978 million of the previous session decreasing by 2.941 million shares. The sentiment was positive for over a week and certain key stocks had turned overbought, therefore, the market took a technical breather to consolidate itself, analysts said.
Prime banks, led by MCB, were hard hit by pressure due to confusion over the issue of capital gain tax, they added. However, oil distribution sector, despite the news that the government had no plan to raise the prices of petroleum products, moved upwards.
Conflicting rumours about the capital gain tax ratio kept the entire banking sector under pressure on Wednesday, a broker said. Such rumours were the key source for keeping the banking sector depressed, he added. There is a strong anticipation that the government may revise the capital gain tax and if it happens the market will definitely welcome this significant move, he maintained. Any positive change in the political scenario will also boost the sentiment and encourage investors to take fresh positions, another broker said.
These days the market movement is changing with the developments taking place in the political situation, which has taken a new turn after rift in APDM, said Javed Iqbal of Javed Iqbal Securities Ltd.
"In last few days, we have witnessed positive changes in the political scene, which have boosted investors' confidence", he added. He said the banking sector had been depressed since the last day because of a prevailing confusion over the issue of the capital gain tax. Due to this confusion, there has been 10-11 million declines in SCRAs, he pointed out. Moreover, profit-taking was also a reason for Wednesday's pressure as people buying at lower levels were now selling to book profits.
Overall the market sentiment was bullish and if all remained well on the political side, it would continue moving up non-stop after the January 8 elections. Of total 119 traded scrips, 32 were up, 37 landed in minus zone, while 50 stayed intact to their previous levels.
Among major gainers, PSO soared by Rs 3.00, Arif Habib Securities Rs 2.50, Crescent Steel Rs 2.10, Picic Commercial Bank Rs 2.00, and JDW Sugar Mills Rs 1.95. In negative column, MCB lost Rs 15.60, Adamjee Insurance Rs 13.00, Pak Suzuki Motors Co Rs 3.10, Engro Chemical Rs 3.10, and Attock Refinery Rs 2.50. Arif Habib Securities and NIB were the volume leaders with turnover 5.203 million and 3.262 million shares.