KARACHI, Sept 29: The KSE 100-share index on Monday fell below the crucial level of 4,000 points, off 176 points after breaching through two consecutive barriers on panic selling but there was no matching buying at the falling prices as was reflected by steep decline in the trading volume.

It finished the day with a massive single-session fall of 175.63 points or 4.22 per cent at 3,987.60 as compared to 4,163.23 at the last weekend as all the leading base shares fell in unison on fresh unloading. Cumulative loss during the last two being over 600 points or 14 percent.

The market capital also shed another Rs37.020bn at Rs882.328bn from Rs919.348 at the weekend, the all-time peak level being Rs.1019bn touched early this month, the total loss being Rs137bn during the last two weeks.

It was an effort to shift long positions from the carryover market to the regular one as investors were not inclined to hold long positions in view of the developing political situation owing to rigid positions taken by the contenders of power on the LFO. The threat to launch a movement against the government also worried investors.

Investors are terribly worried over the breach of an important barrier of 4,000 point as it was considered a strong takeoff point for its onward thrust and there could be anything after the breach, fears a leading broker.

What was more important was that there were not many willing buyers including the financial institutions at the falling prices allowing blue chips to receive massive battering on all the counters.

“The suspension of C-Wealth membership of Pakistan owing to tussle over the LFO was also not considered a positive development by the investors and tried to straighten the risky positions,” analysts said.

The breach of two psychological barriers, from 4,163 to 3,988.63 signals that the market’s overbought position and investor intentions to get out of the market until sanity returns to the political scene.

It was the second largest single session decline for the newly introduced index, the previous largest fall of 206.50 points was recorded on September 16, 2003.

The decline was not confined to any particular sector but covered the entire list, although overvalued shares in energy, fertilizer, banking, auto, insurance and telecom as well as some second-liners also came in for strong selling and fell sharply lower.

An ambitious privatization programme for the month of the October has been announced sans PSO, which worried investors as was reflected by persistent selling in its share and the consequent steep decline. Partial sell-off, 3.5 per cent shares of National Bank and 2.5 per cent shares of Oil and Gas Development Company during the next month should have lured investors back but they stayed away.

Sharp declines were strewn all over the list as overvalued shares fell like nine pins under the lead of Pak-Suzuki Motors, Packages, Glaxo-SKF, Al-Ghazi Tractors, National and Pakistan Refinery, PSO, Shell Pakistan, Pakistan Oilfields and Unilever Pakistan, off Rs6.40 to Rs50. Leading energy shares were in the forefront of losers on active selling.

Some of the leading shares, which had announced higher dividend recently including Gatron Industries, Tri-Pack Films and Ferozsons Lab were leading among the gainers, which posted gains ranging from Rs6 to Rs9.15. But the largest rise of Rs53 was noted in Parke-Davis ahead of dividend announcement. Zaman Textiles, Ghani Glass, Rupaly Polyester and Noon Sugar also rose by Rs2.60 to Rs4.75 and so did some others.

Trading volume fell to meagre total of 140m shares from the previous 339m shares as losers further extended their lead over the gainers at 316 to 30, with 24 shares remaining unchanged at the last levels.

PTCL led the list of actives, off 55 paisa at Rs36.70 on 40m shares, Fauji Cement, lower 50 paisa at Rs10 on 9m shares, National Bank, easy by Rs2.40 at Rs46.40 on 9m shares, KESC, lower 65 paisa at Rs6.50 on 8m shares and Pakistan Oilfields, off Rs18 at Rs342.10 on 7m shares.

Other actives included Japan Power, easy 25 paisa on 6m shares, FFC-Jordan Fertilizer, off one rupee on 5m shares, D.G. Khan Cement, off Rs2.15 also on 5m shares, Lucky Cement, lower Rs1.05 on 4m shares and Pak PTA, easy 90 paisa also on 4m shares.

FORWARD COUNTER: Speculative issues also followed the lead of ready counter and fell sharply under the lead of ICI Pakistan and PSO, off Rs4.05 and Rs14.25 at Rs77.20 and Rs270.75 on 0.988m and 7m shares respectively. Sui Northern, MCB, Engro Chemical and Fauji Fertlizers suffered fall ranging from Rs1.90 to Rs4.65.