The LSE-25-index retreated to 3910.96 points from 3959.83 of the preceding session, registering a net fall of 48.87 points or 1.23 percent. Volume also shrank to 45.962 million shares from 58.950 million, showing a decline of 12.987 million shares or 22.03 percent.
The sentiment stayed depressed in most of the session and in early session, equities moved down sharply on account of negative news about-Etisalat-PTCL deal, bringing the LSE index down by over 100 points. A number of shares were capped at its lower levels in early trading, brokers said. However oil sector, banking stocks and other fundamentally strong shares resisted the pressure and received fresh gains, they added. PSO, National Bank and PPL were the top gainers, while Adamjee Insurance, Lucky Cement and Bosicor Pakistan underwent losses.
According to analysts, because of negative development with regard to Etisalat-PTCL deal, people were expecting heavy battering on Monday but late buying averted the disaster and the market partially recovered.
According to news appearing in the press Etisalat has backed out from the deal and Privatisation Minister Dr Hafeez Shaikh has flown to Dubai to negotiate with the management of the company.
Knowledgeable people of the market were cognisant of the problems of Etisalat with PTCL and were ready to hear some negative news on this front, said Dr Shahid Zia, head of research of Switch Securities Ltd.
Anticipating backout of Etisalat from the deal they were already on selling counters, he added. So it was now a discounted report, due to which its impact was not much harsh on the market sentiment, he pointed out. Moreover, the market was technically overbought and big players were already adopting a 'buy on dip' policy that did not let the market to move towards a possible disaster.
As far as Monday's trading pattern is concerned it appears in early session panic was deliberately created to force the weak holders to go for off-loading. When the weak holders shed the positions, vested interest came in for buying in late hours, which helped the index gain strength, he added. In last minutes NBP and other fundamentally strong shares touched its upper cap limits.
"I believe all the fundamentally strong shares like bank, cement and auto sector still have more strength to move up further, but the news of back out of Etisalat form PTCL deal has turned the market shaky." It is a second major set back to the Privatisation Commission, Dr Shahid said. Earlier the government has faced a similar situation in case of privatisation of KESC, he pointed out. This is very unfortunate and not good omen for the country's economy as well as privatisation process, he remarked.
In all 79 scrips were traded, out of which 33 improved its worth, 7 landed in minus column while 39 were intact to its previous levels. Among major gainers, PSO improved by Rs 9.65, National Bank Rs 7.60, PPL Rs 5.45, Faysal Bank Rs 4.45 and Askari Commercial Bank Rs 4.05. In minus zone, Adamjee Insurance lost Re 1.00, Lucky Cement Rs 0.90, Bosicor Pakistan Rs 0.80, PICIC Growth Fund Rs 0.75 and KESC Rs 0.65. Fauji Cement was the volume leader with 8.553 million shares followed by DG Khan Cement with 7.559 million shares.