20000210

Downward trend continues on LSE

Recorder Report

Lahore: Downward trend continued on the Lahore Stock Exchange (LSE) for second consecutive day, while the index registered a decrease of 8.40 points amid mounting volumes.

The market depicted positive signs when it resumed trading in the morning, but fell prey to selling pressure from the weak holders, when the first session was still in progress. It pushed the equities downward. The trend continued to prevail till the close of the market. At the final bell, the losers subdued the gainers.

According to market analysts, there was nothing in the background of the day's downturn, except that the main investors, who had been keeping themselves busy in buying and selling for short-term, decided to liquidate their stocks. The market, in fact, made a technical turn, which was not unexpected, he added.

A steep fall was seen in fuel and energy sector on Wednesday. Shell Pakistan, Engro Chemical, PSO, Adamjee Insurance and PTCL, all suffered losses on the broad front and finally finished on a negative note.

Dr. Shahid Zia of Zafar Securities said that the depression in equity values was the outcome of a technical correction which, in his view, was a healthy sign for the market sentiments. The surge in share values with dips is considered a positive sign for the market, he added. However, it was difficult to say at this stage what direction the market would take on Thursday or the day after. It might continue trading under pressure on both Thursday and Friday, as on these days the weak-holders usually opt for squaring their positions.

The LSE-101 share index registered a decrease of 8.4 points and closed at 426.36 points against 434.76 points of Tuesday. The trade volume amounted to 81.141 million shares as compared with 46.071 million shares of the previous day, showing a decline of 35.07 million shares.

In the positive column, Pakistan Oil Fields was up by Rs 2.50, General Tyre and Rubber Rs 2.00, Kohinoor Weaving Mills Rs 1.50, Punjab Modarba 1st 95 paisa and Mohib Textile Mills 80 paisa.

Among the major losers, Millat Tractors plunged by Rs 6.00, Shell Pakistan Rs 5.00, Adamjee Insurance Rs 3.00, Engro Chemical Rs 1.85, PTCL Rs 1.35, PSO Rs 1.30, while Fauji Fertilizer dipped by 95 paisa.

PTCL continued to lead the market in terms of turnover with 62.662 million shares followed by the KESC with 5.470 million shares and FFC-Jordan Fertilizer with 2.917 million shares.