KARACHI, July 3: Contrary to analysts’ predictions of a buoyant opening, the new fiscal account made a terribly bearish debut as tax worries and 10pc increase in gas prices triggered a good bit of profit-selling at the weekend inflated levels and kept the bulls at their toes all the time. The KSE index was off 386 points or 3.86pc eroding Rs100bn from the market capital.

The heating up of political scenario in the backdrop of ARD’s demand for resignation of the president and the prime minister by the end of the current month also weighed against the underlying sentiment leading to panic-selling on the blue chip counters.

The turnover figure fell to a third single-session low of 122m shares, the lowest so far being 115m shares and 117m shares touched a year earlier.

But the chief negative factor behind the sell-off was that the new tax regime for the share business, effective from July 1, which stipulates an increase both in the Capital Value Tax and the withholding tax. And added to it was 10pc increase in gas prices for both the commercial and industrial units, which would significantly add to production cost.

The KSE 100-share index suffered a massive decline of 385.76 points or 3.86pc at 9,603.65 as compared to 9,989.41 at the last weekend on active selling at the inflated levels.An idea of panic-selling may well be had from the fact that all the leading base shares finished with lower locks, although some of them managed to attract a good bit of covering purchases at the fall. The reports about initiating probe into market crash in March last year also took its toll on relevant counters.

OGDC, National Bank, Pakistan Petroleum, Pakistan Oilfields, MCB and some others were leading losers as well as volume leaders. But some of the institutional traders picked them up on the perception that their current levels are attractive enough for capital gains.

“I don’t think bears have the courage and the conviction to check the market’s new fiscal year opening,” stock analyst Hasnain Asghar Ali said, adding “cash-heavy financial institutions are there to absorb unwarranted selling”.

However, the future outlook appears to be a bit bearish as the changing political atmosphere notably after ARD’s demand could destabilise the market fearing agitations, another stock analyst Faisal Abbas said.

“Essentially being highly sensitive to negative political developments, share market mostly gives in at the peak of anti-government movement,” some others fear.

Minus signs dominated the list under the lead of Arif Habib Securities and Unilever Pakistan, off Rs23.50 and Rs35, followed by National Bank, IGI Insurance, Pakistan Refinery, PSO, Attock Petroleum, Shell Pakistan,

Dawood Hercules and Pakistan Oilfields, which suffered fall ranging from Rs9.40 to Rs16.70.

Prominent gainers were led by Sitara Chemical and EFU Life Assurance managed to finish higher by Rs4.50 and Rs9 respectively. Colony Textiles, Indus Motors and Pakistan Paper fell by Rs1.30 to Rs1.75.

Traded volume showed a sharp contraction at 122m shares from the previous 230m shares as losers forced a strong lead over the gainers at 252 to 41, with 16 shares holding on to the last levels.

OGDC came in for active selling and fell by Rs6.80 at Rs129.95 on 20m shares, followed by MCB, lower Rs6.30 at Rs204 also on 20m shares, National Bank, off Rs9.50 at Rs206 on 16m shares, Pakistan Petroleum, lower Rs9.75 at Rs202.10 on 9m shares, Pakistan Oilfields, down by Rs16.70 at Rs318.10 on 4m shares and PTCL, easy by Rs1.85 at Rs38.75 also on 4m shares and D.G.Khan Cement, off Rs4.50 at Rs85.50 on 3m shares.

Other actives were led by Bank of Punjab, off Rs2.65 on 4m shares, Fauji Cement, lower 90 paisa on 3m shares and Lucky Cement, off Rs5.15 also on 3m shares.

FORWARD COUNTER: MCB led the list of actives on this counter, sharply lower by Rs7.73 at Rs205.50 on 8m shares followed by OGDC, lower by Rs6.90 at Rs131.10 on 5m shares and National Bank, easy Rs9.61 at Rs208 on 4m shares.

Pakistan Petroleum followed them, off Rs9.49 at Rs205 on 3m shares and Pakistan Oilfields, lower by Rs16.85 at Rs321.10 on 2m shares.

DEFAULTER COUNTER: Mixed trend was seen on this counter as investors played on both sides of the fence amid alternate bouts of buying and selling but there was no negative fallout of the ready section.

Schon Modaraba and Norrie Textiles rose by five and 85 paisa at Rs1.45 and Rs2.40 on 0.130m and 0.131m shares respectively, while Quice Food was marked down by 20 paisa at Rs3.30 on 0.135m shares. Others showed fractional changes.

BOARD MEETINGS: KASB Liquid Fund, on July 6, Jahangir Siddiqui Investment Bank, Haroon Oils, on July 7, AMZ Plus Income Fund and Chenab Fibre on July 8.