Share values depicted weakness on Lahore Stock Exchange (LSE) on last trading day of the week, as the meeting of Tareen Committee on COT ended without reaching a final conclusion, that disappointed people. However, there was some improvement in volume, but it was still far below the desired mark.
The LSE-25 index was down 20.29 points or 0.5 percent to finish at 3,547.91 points as compared to 3,568.20 points of Thursday. Volume improved to 24.707 million shares from 18.887 million of the previous session, registering an increase of 5.820 million shares or 30.8 percent.
The market remained volatile and failed to take a clear turn because of deadlock over the issue of COT that has been taking the entire market hostage since many days, stock analysts said. According to them, the news that the Tareen Committee meeting had failed to take a decision on the fate of COT sent shock waves in the market, which led the index downwards, they added. However, last session recovery because of interest in selective chips did not allow the losses go beyond limits. PSO, UBL and Adamjee Insurance performed well and helped the market stage recovery in last minutes, however, the index ended with a weak note. On the other end, PPL, Fauji Fertiliser and Nishat Mills were the key losers.
According to Ahmed Nabeel, head of operations, Invest and Finance Securities Ltd, the market behaved quite like previous week and also shed over 100 points during this week. It witnessed a roller coaster drive on last day of the week due to meeting of Tareen Committee and in this process it lost 105 points at one stage. However in last 10 minutes it recovered and finally ended with a reduced loss, he pointed out.
Today's trading was much confused, and in first session the index lost 5 points at closing, but investors and general public overreacted and get panicked as they were expecting restoration of COT in Friday's meeting, he added. He said that most of analysts were not so optimistic about the restoration of Badla while the announcement in KSE by its chairman that meeting failed to settle the issue added fuel to fire, and caused panic in trading houses.
"In my opinion, things are heading towards right direction and by Monday or Tuesday Badla amount capping will be increased to Rs 25 billion from Rs 12 billion in seven COT companies on the basis of first come first basis."
Moreover, other ways are also being explored by the committee and in final stage SECP will wet the document, he added. The market, he maintained would behave more wildly from Monday and on the news of enhancement Badla cap market may gain 500 points at very shortest time. However under the given circumstances 'by on dips' is advised, he added.
In all, 80 scrips were traded, of which 14 were up, 25 landed in minus zone while 41 were intact to their previous levels. In positive column, PSO was up Rs 3.25, UBL Rs 2.00, Adamjee Insurance Rs 1.45, Javed Omer Vohra & Co Rs 1.40 and Bosicor Pakistan Rs 1.05. In minus column, PPL lost Rs 3.50, Fauji Fertiliser Rs 1.70, Nishat Mills Rs 1.50, OGDC Rs 1.20 and DG Khan Cement Rs 1.10. PTCL was the volume leader with 7.641 million shares followed by OGDC with 3.985 million shares turnover.
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