The news of federal cabinet decision to allow import of new and old cars and President Bush's statement regarding the nuclear issue marred activity at the local bourse on Thursday, where share values extended the overnight losses forcing the index to underwent a loss of 50.43 points.
The LSE 25 share index closed at 2680.61 points versus 2732.04 of Wednesday, while overall turnover retreated to 63.358 million shares from previous day's 75.860 million, recording a decline of 12.502 million shares.
The market showed weak signs when it opened in the morning, following heavy selling pressure from major players. Later, this pressure was seen across the board, which kept intensifying gradually.
Stock analysts described two major news reports as the chief factors for the day's equity fall, ie, the government decision regarding allowing import of old and new cars in the country and secondly US President's call for curbing the spread of nuclear technology.
Fuel & energy sector, with some exception, and bank stocks were the prime victims of selling pressure. At the other end, Pakistan Oil Fields and Trust Leasing Corporation dominated gainers' column. According to stock analysts, at one time the index was minus by 100 points, but later due to interest in selective chips it showed some recovery.
"In view of the negative news reports which have badly hit the market, we see hardly any let-up in pressure on Friday," they said.
News relating to Bush's call for halting spread of nuclear know-how indicate all eyes are on Pakistan and in future it could face trouble, said Ahmed Nabeel, head of operations at Invest & Finance Securities Ltd.
Market people apprehend that the United States might take some tougher action against Pakistan and that could be in form of economic sanctions, he added.
This perception has scared general investors and they are off-loading. In absence of public interest, the market, which is already overbought sharply, reacts to any negative news and comes under pressure forthwith, he observed.
Furthermore he pointed out the news about cabinet decision to allow import of cars and postponement of cement policy on dams and barrages impacted negatively on auto and cement sectors.
In auto sector, circuit breakers came into action to prevent further falls, he said. About future course of the market, Nabeel viewed that it is playing in hands of big players and there is no public involvement, hence, chances for an immediate turn are remote. However, some buying interest could emanate in selective chips on Friday, but even then people are advised to be very selective and choosy in deals.
At the moment, 'sell on strength' could be the best strategy for small investors, he said.
Overall there were 9 gainers against 39 losers with 39 remaining unchanged, of total 86 traded scrips. Key gainers were Pakistan Oil Fields which added Rs 7.00 to its worth, Trust Leasing Corp Rs 0.45, Worldcall Communication Rs 0.30, Crescent Textile Mills Rs 0.30 and First Standard Investment Bank Rs 0.25. Among key gainers, PSO shed Rs 3.25, ICP SEMF Rs 2.55, MCB Rs 1.15, OGDC1.75 and ICI Pakistan Rs 1.60. Fauji Fertiliser Bin Qasim and OGDC were the volume leaders with 8.898 million and 5.558 million share turnover respectively.
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