Reacting negatively to a State Bank report about economic indicators, the share values have moved down on the Lahore Stock Exchange (LSE) though selling pressure turnover has remained on the higher side. The LSE-25 Index, with a decline of 42.58 points, ended the session at 4,503.13 as against its previous closing at 4,545.71 points.
Trade volume increased to 35.441 million shares from 31.102 million, depicting an increase of 4.338 million shares. The market behaved roughly and mostly remained in minus zone amid investors airing concerns over the SBP report, fearing a decline in the GDP, analysts said. The central bank sees a drop in the GDP growth from its target 7.2 percent to 6.6 percent in the first quarter of the current fiscal year.
According to the report, inflationary pressure also remained strong in the quarter because of high international commodity prices. When the session closed, declines led the gains with MCB Bank and JOVC emerging top losers.
The market moved in a narrow range with most of the prime scrips in the banking and oil and gas sector undergoing selling pressure, said Mirza Muhammad Irfan of Capital Vision Securities Ltd.
He said that besides the report presenting a shady picture of the economic indicators, especially about the growth rate in the first three months of the current financial year, press reports about the possibility of increased United States role in country's tribal areas also sent negative vibes in the market. Pakistan has strongly reacted to such a report appearing in The New York Times, but even then the market people are concerned over it.
The prevailing law and order problem, especially after the tragic assassination of Benazir Bhutto, is another concern for investors, Irfan maintained. He said the market was strong fundamentally and if the government succeeded in defusing the tensions by controlling law & order situation, the market will get normal. Out of a total of 113 traded scrips, 18 were up, 51 landed in minus zone, while 44 were intact to their previous levels.
Among key gainers, Attock Refinery was up Rs 7.90, First Capital Equities and Sui Northern Rs 3.25 each, Pervez Ahmed Securities Rs 2.55, and Lucky Cement Rs 2.30. In negative zone, MCB Bank shed Rs 8.75, JOVC Rs 7.55, Allied Bank Rs 6.00, Packages Ltd Rs 5.95 and Adamjee Insurance Rs 5.00. NIB Bank and Bosicor Pakistan were top among the volume leaders with 6.746 million and 6.547 million shares, respectively.