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Equities firm on LSE

RECORDER REPORT

LAHORE: Equities traded under pressure and closed on a firm note at the Lahore Stock Exchange (LSE) here on Monday. The volume also remained low, indicating lack of interest by the investors.

The market opened on a positive note as most of the shares traded on the broad front. But the profit-selling pushed the market downwards. The selling pressure continued to intensify with every passing moment. The market, however, landed in the positive territory at closing bells.

Stock analysts stated that the gradual selling pressure was due to the approaching date of the announcement of the court verdict in the plane conspiracy case. Investors were confused and even looked scared to build up new positions, they added.

On the other hand, most of the weak holders also continued to offload their positions. Except Adamjee Insurance and Engro Chemical, almost all the core issues lost their value and closed on a weak note.

Analysts forecast that there was a rare possibility of the recovery of the market in the next couple of days. The market, they maintained, would continue to remain under pressure till the announcement of verdict by the court in plane conspiracy case.

Market analyst, Aun Abbas Kazmi of KASB & Co said that the market was likely to remain under pressure even if the court gives decision in favour of Nawaz Sharif. If it so happens, there may be a political uncertainity in the country because people will question the justification of the military take-over of 12th October, he observed.

The day's low volume, he continued, indicated that the main investors were sitting on the side lines and awaiting the verdict of the court, Kazmi added. An IMF mission was due in Islamabad on Monday to hold talks with the economic managers and there was a possibility that something positive would emerge due to these meetings. However, if the court judgement goes against Nawaz Sharif, and his supporters opt for an agitation, it would have a negative impact on the capital market, he added.

The LSE-101 share index was marginally up by 0.45 points to close at 479.85 points as against 479.40 points of Friday. The volume amounted to 96.127 million shares as against 120.669 million shares of its previous close, depicting a fall of 24.542 million shares.

Overall 191 scrips traded during the day of which 44 were gainers to 45 losers, while 102 did not change their earlier positions.

Among the major gainers, Adamjee Insurance was up by Rs 4.40, Suraj Cotton Mills Rs 1.50, Southern Electric Power Rs 1.39, Engro Chemical 0.076, Reliance Weaving Mills Rs 0.75.

In the minus column, Lever Brothers lost its worth by Rs 5.50, PSO Rs 2.20, Shell Pakistan Rs 2.00, Nagina Cotton Mills Rs 1.75 and Ibrahim Textile Mills Rs 1.50.