KARACHI, June 8: The KSE 100-share index on Thursday crashed below the psychological barrier of 10,000 points for the second time during the last couple of weeks on panic-selling and analysts fear that this time the rout could be terribly alarming. The net fall was 427.32 points or 4.19 per cent at 9,775.04 points.

A decline of 7.32 per cent in two sessions eroding Rs204 billion from the market capital at Rs2,765.00 billion signals that the market is in a terribly bad shape, although the bulls have more than one reasons to fight back any time on the strength of positive corporate background news.

The bears target was leading base shares notably OGDC, National Bank, Pakistan Oilfields, Pakistan Petroleum, which together hold a weightage of 50 per cent in the index. All ended with lower locks followed by limit fall in a single session.

The increase in CVT and withholding tax in the budget, exit of foreign buyers and the fall of world bourses are not valid reasons for the market decline, says a leading broker, adding “the scare is being spread purely on speculative basis to mop up floating stock of blue chips at the lowest levels.”

“The selling, which failed to find many willing buyers even at attractively lower levels appears to be inspired as the basic market fundamentals are not that weak,” analysts said.

The turnover figure fell to 123m shares, a day’s tally of an active share in a session, reflecting that it was virtually a sellers market and not many buyers despite an attractive bait of capital gains. Losers held a strong lead over the gainers at 294 to 45, with 24 shares holding on to the last levels.

Opinions, however, divided about future market outlook but leading among the analysts predict that market will be back on the rails after the broker infighting and the dust raised on the issues outside the market scope settles down, analysts said.

Minus signs dominated the list as most of the blue chips fell like the house of cards on near-panic selling, although there were not many willing buyers.

Leading oil shares led the market fall under the lead of Pakistan Refinery, National Refinery, PSO, Shell Pakistan, Pakistan Oilfields, Pakistan Petroleum, which suffered fall ranging from Rs11.10 to Rs22 followed by MCB, National Bank, Millat Tractors, Pak-Suzuki Motors, Dawood Hercules, Colgate Pakistan, IGI Insurance and Unilever Pakistan, off Rs10.20 to Rs60.

OGDC came in for active selling and fell by Rs6.75 at Rs128.35 on 22m shares followed by National Bank, off Rs10.35 at Rs197.40 on 15m shares, Pakistan Petroleum, lower Rs11.10 at Rs211.85 on 7m shares, Pakistan Oilfields, sharply lower by Rs17.75 on 5m shares, Lucky Cement, lower Rs5.25 at Rs100.10 on 4m shares and D.G.Khan Cement, off Rs5.80 at Rs91.20 also on 4m shares.

Other actives were led by Pak PTA, easy 20 paisa on 5m shares, Fauji Cement, off Re1 on 4m shares, Bank of Punjab, lower Rs4.05 also on 4m shares and Fauji Fertiliser Bin Qasim, easy by Rs1.60 on 4m shares.

FORWARD COUNTER: OGDC also came in for massive battering in the forward section and fell by Rs6.70 at Rs127.30 on 14m shares, National Bank, off Rs10.45 at Rs198.80 also on 14m shares, Pakistan Oilfields, easy Rs17.85 at Rs339.15 on 7m shares.