The LSE-25 index closed at 3903.69 points as compared to 3975.40, losing 71.71 points or 1.80 percent. Volume came down to 43.794 million shares from 68.181 million, showing a net decline of 24.387 million shares or 35.76 percent.
The market was plus at the opening, but subsequently turned bearish with the LSE index descending by over 200 points, stock analysts said and added that volume was also considerably low depicting sluggish business activity.
According to analysts, it appears that the correction phase has prolonged and if no support came from the institutions it might shed further in the next few sessions. PSO was Wednesday's top loser while National Bank, Nishat Mills and PPL were the other prominent losers. Fauji Fertiliser and Faysal Bank were the major gainers. Fauji Fertiliser Wednesday performed well and attracted fresh buying on the basis of its corporate results. A broker said that in last minutes the market was volatile and unpredictable, which indicated the situation might remain more or less the same in the upcoming session.
Mirza Muhammad Irfan, equity research head of Capital Vision Securities Ltd, blamed futures settlement and CFS related problems as the major cause for persisting pressure, which has dampened the sentiment. After the March crisis, SECP had decided that there would be no delivery-based settlement. But practically delivery settlement is running parallel to cash settlement. Likewise, there appears no progress regarding replacement of temporary arrangement of CFS with proposed margin financing. Moreover, the deadline for PTCL take-over is approaching nearer and there is no news on this front, which has raised concerns of the stakeholders. However, there are rumours that the Royal family of UAE has shown commitment that it will not back out from the deal. But this is just a rumour and there is no one to confirm it, he pointed out.
Apart from the above reason, the high rates of certain stocks, especially banks are also a reason for the technical turn of the market, he said. He however, said despite overall sluggish sentiment in the market Fauji Fertilisers and Picic Growth Fund did well and scored fresh gains, on account of their results. Fauji Fertilisers has declared 12.5-percent cash divided and 30-percent bonus while Picic Growth Fund announced 32.5-percent cash dividend and 10-percent bonus.
According to him, the market in last minutes staged a sharp recovery and index recovered a major chunk of early losses, which is a healthy sign.
In all, 75 scrips were traded, of which 8 stayed up, 34 landed in minus column, while 33 were intact to its previous levels. Major gainers' were Fauji Fertiliser, improving by Rs 4.50, Faysal Bank Rs 2.15, Adamjee Insurance Rs 0.95, PICIC Growth and OGDC Fund Rs 4.00 each. In negative column, PSO shed Rs 9.00, National Bank Rs 8.20, and Fauji Cement Rs 1.10.
PTCL and MCB bank were the volume leaders with 9.772 million shares and 3.789 million shares, respectively.