LSE extends losses

12 Jan, 2008

The share prices have extended the overnight falls on the Lahore Stock Exchange (LSE) on the last trading day in the week, undergoing a fresh loss of 1.20 percent amid high tensions caused by lawlessness gripping the market after the Lahore suicide attack killing over two dozens.
The impact of Thursday's bombing was also visible on the market staying highly depressed and moving in a very tight band. The LSE-25 Index shed another 54.34 points and fell to 4,443.51 points from 4,497.85, recording a net loss of 54.34 points. Volume slipped to 25.615 million shares from 33.834 million, depicting a decline of 8.219 million shares.
A majority of the blue chips remained under massive selling pressure amid concerns on the deteriorating law and order, stock analysts said, adding that they hardly saw an immediate improvement in the market movement. A bomb hoax in the Karachi Stock Exchange also panicked investors prompting them to off-load hastily, a broker said. He said the market started going down drastically when a rumour hit the market.
The Engro Chemical and the Habib Bank were the key gainers while the Adamjee Insurance and the Pakistan Oilfields received heavy losses. Invest and Finance Securities Ltd Equity Sales head Amer Hussain Khan said the market already in trauma because of past day's tragic incident was further hit by pressure when the rumour reached trading houses.
All the key chips painted a dismal picture with the insurance and oil sector receiving heavy battering, he said. Oil sector shares were affected by the decline in the crude oil prices in the international market.
"The fresh wave of terrorism starting with the Benazir Bhutto assassination has forced foreign and local investors to go out of the market and wait till better days to come," Amer said. "Such a situation has also dried up volumes. I think this state of affairs might continue till the general elections." He also advised the investors to deciding hastily and invest only in fundamentally strong shares such as OGDC Lucy Cement, Dewan Farooq Motors, Sui Northern.
In all, 109 scrips were traded of which 13 were up, 51 in minus zone while 45 were unchanged. Major gainers were the Engro Chemical, improving by Rs 3.05, the Habib Bank Rs 1.90, the First Capital Equities and the IGI Investment Bank Rs 1.00 each. In the red zone, the Adamjee Insurance was down by Rs 12.50, the Pakistan Oilfields Rs 11.75, the MCB Bank Rs 8.50, Attock Refinery Rs 8.45 and JOVC Rs 6.75. Bosicor Pakistan and NIB Bank were the volume leaders with 3.561 million and 3.189 million shares.

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