KARACHI, May 31: The KSE 100-share index on Wednesday received another massive battering and fell below the crucial level of 10,000 points on renewed selling fuelled by rumours of clearing problems in the recently rung off forward May settlements and worries about the new taxes in the budget.

The breach of the psychological barrier of 10,000 points at 9,800 after an encouraging opening, apart from budget worries, also reflects negative fallout of the bearish trend on the foreign bourses amid fears of hike in interest rates.

It plunged to finish with another massive fall of 318.04 points or 3.14 per cent at 9,800.69, eroding Rs83bn from the market capital at Rs2,776.217bn as leading base shares faced the mid-session flurry of sellstops followed by panic and confusion and lower locks in the blue chips. At one stage it fell to 9,729.95 points after hitting the day’s peak of 10,230.28 points.

Selling in the leading oil shares, which dragged the entire market into minus column, was so strong that investors even ignored reports that the OGDC had been granted four new exploration licences and petroleum concessions on which it would invest $5.805m.

The market’s crash from its peak levels worried small investors as it has wiped out their savings but those who have the holding capacity are little worried over the current plunge on the perception that the market still has some positive basic fundamentals on its credit on which it could build up a strong rally as it did fall.

Hasnain Asghar Ali, a leading stock analyst attributed the snap reversal after Tuesday’s massive recovery to clearing problems of outstanding dues in forward May settlements but hoped the current attractively lower levels could attract a lot of short-covering in the sessions to come.

“The market is dancing in tune with world markets including Mumbai and other regional bourses amid fears of hike in interest rates and the KSE could hardly be an exception,” Ahsan Mehanti, another leading stock analyst said, adding “budget uncertainties are adding to the investor worries.”

Faisal Abbas, another stock analyst, said that withdrawal of foreign portfolio investment had no relevance to the current market decline as it was too insignificant to fuel the sell-off, the market had its own reasons to rise and fall dictated by some psychological depressants and lack of demand.

Institutional traders were there to support the falling market as was reflected by early rise but as the market was in the tight grip of rumour mongers, the rescue efforts failed to produce desired results, some others said.

Some of the leading MNCs led the market decline under the lead of Unilever Pakistan and Nestle Pakistan, off Rs20 and Rs59.85, followed by MCB, National Bank, Pakistan Petroleum, Attock Petroleum, Grays of Cambridge, Dawood Hercules, Engro Chemicals, Pak-Suzuki Motors, Goodluck Industries, PSO and Pakistan oilfields, which suffered fall ranging from Rs8.50 to Rs18.25.

Pakistan Services and IGI Insurance managed to finish with an extended gain of Rs14.25 and Rs20.10 respectively. Other prominent gainers included Arif Habib Securities, EFU General and Life, Fateh Textiles, Abbott Lab, HinoPak Motors, Ferozsons Lab, Sanofi-Aventis and Lakson Tobacco, up by Rs5 to Rs13.90.

Trading volume again fell to 188m shares from the previous 216m shares as losers extended the lead over the gainers at 233 to 82, with 28 shares holding on to the last levels.

OGDC again led the list of actives, off Rs6.75 at Rs128.60 on 38m shares followed by National Bank, lower by Rs10.75 at Rs204.25 on 21m shares, PTCL, easy 80 paisa at Rs44 on 19m shares, Pakistan Petroleum, Rs12.60 at Rs221.15 on 16m shares, Lucky Cement, off Rs4.50 at Rs98.50 on 8m shares and Pakistan Oilfields, lower by Rs18.25 at Rs347 also on 7m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, off Rs1.65 on 11m shares, Fauji Cement, easy by Rs1.90 on 7m shares, D.G. Khan Cement, off Rs4.75 on 6m shares and Pak PTA, lower 20 paisa on 5m shares.

FORWARD COUNTER: National Bank remained under pressure on active selling and suffered a fresh fall of Rs10.85 at Rs206.15 on 15m shares followed by OGDC, off Rs6.75 at Rs128.25 on 13m shares and Pakistan Petroleum, lower Rs11.70 at Rs223.20 on 13m shares.