LSE values suffer losses

Share values underwent heavy battering on news of delay in bidding for PTCL privatisation, coupled with rumours regarding further tightening of exposure rules by the regulator pushing the index down by 3.84 percent on Lahore Stock Exchange (LSE) on Thursday. The LSE-25 index shed 147.66 points closing at 3695.65 as against 3843.31 points of Wednesday. Volume increased to 98.150 million shares from 85.784 million shares, registering an increase of 12.400 million shares.
The market took a healthy start but fell prey to selling pressure after news regarding delay in bidding for the privatisation of PTCL, stock analysts said. A private TV channel, quoting Secretary Privatisation, announced that the bidding for the PTCL privatisation would not be held on 28th of this month. This triggered pressure in the market and equities led by fuel and energy sector started falling.
PPL, PSO, OGDC and Nishat Mills received immense pressure and shed its values considerably. Pakistan Oil Fields, however, topped gainers list and added to its worth handsomely followed by Adamjee Insurance, which also registered fresh gains.
According to brokers, till the announcement of the budget the market was expected to stay volatile, showing a zig-zag movement amid privatisation and budget news. Therefore, under such situation adopting cautious approach will be a wise decision, they added.
Despite upward tendency in early session, PSO and PPL were under pressure from the very outset because of being in overbought position, while in last minutes they touched its lower circuit breakers, said Mirza Muhammad Irfan, equity research head of Capital Vision Securities Ltd.
According to him, last minutes pressure, which was mainly due to a rumour that Securities and Exchange Commission of Pakistan (SECP) had tightened exposure rules, made dents in the market and it nose-dived, he added.
Moreover the news that bidding date for sale of PTCL, which was scheduled to be held on May 28, had been changed, also caused pressure in the market. However, surprisingly, the market gave little weightage to the SBP move to hike three-month treasury bills yield. The tone of the market remained highly volatile on account of various rumours with receiving erosions, especially in last minutes of the session, that led the index to downward direction forcing it to finish below 3,700 point's level, Irfan further said.
He, however, pointed out that the market, after taking short correction, will re-enter positive column, with interest in banking sector. Now, there appears no major threat to the market, but any untoward move on part of SECP could prove fatal for the market sentiment. About the prospects of futures market, he said that all futures counters were dead and only the regular market was active presently.
In all 72 scrips exchange hands, of which 4 improved its worth, 35 landed in minus column while 33 maintained its overnight positions. Key gainers were Pakistan Oilfields, which surged by Rs 4.00, Adamjee Insurance Rs 1.45, Pakistan Industrial Credit Rs 0.95 and KESC Rs 0.10. Major losers included PSO, which shed Rs 19.50, PPL Rs 10.70, Nishat Mills and OGDC Rs 4.70 each and MCB Rs 4.25.