June 15, 2006	Thursday	Jumadi-ul-Awwal 18, 1427

KARACHI, June 14: The KSE 100-share index on Wednesday suffered largest-ever single-session fall of 547.93 points or 5.88 per cent, at 8,766.98 as prices of more than six dozen blue chips had fallen by 10 per cent during the last couple of sessions but most of the brokers bailed out under the exit system rules and there were no reports of a possible default.

Whether or not all the margin calls were honoured or those operating on the other side of the divide managed to clear their positions was still unclear owing to the prevailing tension and confusion in the market followed by mourning by those who were knocked out of the market.

The index has, during the last three sessions, declined by 1,082 points or 10.36 per cent, wiping out Rs301 billion from the market capital. The previous single-session biggest fall of 491.02 points was recorded early last March followed by rumours of new tax on the share business. It breached through two barriers of 9,000 and 8,000 points.

In the bull-bear fight, the hard-hit is the small investor who is caught unaware. Billion of rupees were wiped out from their savings just in three sessions but there was no warning about the impending crash. PTCL, National Bank, Pakistan Petroleum, Pakistan Oilfields, OGDC, MCB, D.G.Khan and Lucky Cement were among the massively mauled blue chips in which investors lost billions of rupees.

“The falling volumes indicate a terrible liquidity crunch as main mutual funds are seized with redemption phenomenon,” Ahsan Mehanti, a leading stock analyst commenting on the current market collapse said.” They have not enough funds to support the falling market”.

“I still believe the crash is inspired and triggered by some big ones on reasons not necessarily related to the share business,” an insider speculated ”adding those few chosen have the funds to push prices down and lift them without any loss.”

“There was panic all around as after a robust start, share values nose-dived in the absence of support both from the speculative forces and the institutional traders”, another analyst Faisal Abbas said. Rumours including default and margin calls on the part of some of the brokers kept pouring in never allowing bulls to have an overview of the developing situation. But some others said that the market crash in a way is a global phenomenon amid fears of hike in US interest rate and in sympathy with the regional markets including Mombai, which is behaving in tune with the KSE.

No one could precisely predict at this stage about the future share business outlook but the current lower levels hit by some of the leading shares, notably in the bank and oil shares could well prove a “goodbye” for those who have the money and holding capacity, says a leading broker.

Massive fall strewn all over the list, leading among them being PSO, IGI Insurance, MCB, National Bank, Arif Habib Securities, Pakistan Oilfields, Dawood Hercules, Sanofi Aventis, Nestle Pakistan, and Siemens Pakistan, which fell by Rs13 to 63.

Some of the leading shares did not toe the market’s general line of action and rose by 3.90 to 45 for Shaheen Insurance, EFU Life, Artistic Denim, HinoPak, Grays of Cambridge and Wyeth Pakistan.

Minus signs again dominated the list as only 55 shares rose, while 272, fell, with 18 shares holding on to the last levels. Volume figures rose to 145m shares from the previous 88m shares amid panic selling.

PTCL topped the list of actives, sharply lower by Rs4.10 at Rs37.35 on 21m shares, National Bank, off Rs18.50 on 12m shares, Pakistan Petroleum, lower Rs19.20 at Rs172.90 on 10m shares, Pakistan Oilfields, off Rs32.15 at Rs289.55 on 9m shares, OGDC, lower Rs6.05 at Rs115.50 on 8m shares, MCB, off Rs17.55 at Rs158.20 on 5m shares and D.G.Khan Cement, easy by Rs7.95 at Rs72 on 7m shares.

Fauji Fertiliser Bin Qasim, followed them, off Rs3.15 on 6m shares, followed by Fauji Cement, lower Rs1.60 on 5m shares and Bank of Punjab, off Rs7.40 on 4m shares.

FORWARD COUNTER: Speculative issues on the forward counter also followed the lead of their counterpart on the ready section and fell under the lead of OGDC, off Rs6 at Rs114.35 on 31m shares, National Bank, lower Rs18.60 at Rs167.80 on 12m shares and Pakistan Oilfields, off Rs32.15 at Rs290.55 on 10m shares.

Pakistan Petroleum followed them, off Rs19.30 at Rs173.95 on 8m shares and PTCL, lower by Rs4.15 at Rs37.50 on 6m shares. Others also fell sharply where changed.

DEFAULTER COS: Trading on this counter was dull in the absence of demand and prices generally fell where changed on light volume, Asset Investment Bank was an exception, up 30 paisa at Rs2.80 on 0.126m shares.