Selling pressure, triggered by multiple rumours about differences between the PPP and the PML-N and news of arrest of Bank of Punjab management, damaged equities, battering across the board, losing 0.9 percent on the Lahore Stock Exchange (LSE) on Monday.
The LSE-25 Index with a net loss of 41.62 points, finished at 4,577.78, compared with previous level at 4,619.40 points. Overall turnover was slightly higher at 16.156 million shares as against 15.068 million, increasing by 1.088 million shares.
The market showed an upward tendency shortly after its opening and the index went up by over 60 points, at one stage, analysts said. They, however, said later in the day the market fell prey to heavy pressure surfacing from every nook and corner of the market. There were a number of reasons behind the pressure, but according to brokers arrest of former BoP chief Hamesh Khan along with other top officials, were the devastating factors, brokers said. Political rumours also gripped the market and it remained directionless all over the day, they pointed out.
Allied Bank and Silver Star Insurance were the day's prime gainers while Mari Gas Company and Adamjee Insurance led the retreating stocks. Apart from the problems like arrest of top management of the Bank of Punjab, and political reasons, other negative factors were about the rumours of capital flight from the country and investigation against a leading Karachi-based broker, said Javed Iqbal, chief executive, Javed Iqbal Securities Limited.
The news of postponement of by-elections for a period of two months also added to the investors' worries and they sold stakes in panic, he added. He said that in last minutes recovery took place and the market recouped a good chunk of early session losses, but even then the trend continued to be negative, he said.
Javed Iqbal said that political uncertainty was not allowing the market to move in a clear direction, thus the people were advised to adopt a cautious approach to avoid further losses. Like politicians, the market people are also the victims of uncertainty prevailing in the country over restoration of deposed judges and other issues. Therefore, the market may not take a single direction till smooth settlement of these issues.
Budget fears are another important cause of people's disinterest in the market. Under the given situation, it is better for the investors to wait for good time rather to incur losses on daily basis, said Javed Iqbal.
In all, 111 scrips changed hands on the day, of which, 10 soared high, 54 went down while 47 stayed unchanged. In positive column, Allied Bank improved by Rs 1.75, Silver Star Insurance Rs 1.50, Lucky Cement Rs 1.10, Kohinoor Power Company 80 paisa, and OGDC 60 paisa.
In negative column, Mari Gas Company declined by Rs 18.50, Adamjee Insurance Rs 16.00, Attock Refinery Rs 14.40, Indus Motors Company Rs 14.35, and BOC Pakistan Rs 12.00. Bank Alfalah and Bank of Punjab led the market by volume with 1.898 million and 1.360 million shares, respectively.