July 11, 2006	Tuesday	Jumadi-ul-Sani 14, 1427

KARACHI, July 10: The KSE 100-share index on Monday plunged by 331.57 points or 3.37pc at 9,504.47 on panic-selling triggered by the blame game on allegedly manipulated March 2005 market crash, which wiped out $13 billion from the small investors savings.

Floor brokers said it could be a long-drawn legal and psychological battle as the contenders seemed to have taken rigid positions, which could lead to a political turmoil.

The breach of three successive barriers in a single session reflected the prevailing mood of investors as everyone was inclined to get out of the market but there were not many buyers against their offerings, they added.

The panic was so massive that investors were not buoyed by a record cash dividend of Rs5.80 per unit by the National Investment Trust (NIT) announced on Saturday.

All the leading market leaders came in for panic-selling and fell like ninepins, facing lower locks in the absence of buyers. National Bank, OGDC, MCB, Pakistan Petroleum and Pakistan Oilfields were leading among them falling by Rs7.35 to Rs10.

Presentations made by the former chief of the SECP and other in National Assembly’s official probe committee on the issue and some others seemed to have opened a Pandora box, having negative fallout on the stock market.

Although the committee’s findings would be finalised within the next two or three weeks, conflicting views on the issue could keep investors at their toes in the intervening period, share business being the chief victim.“If the blame was transferred to the 11 leading brokers who allegedly manipulated the market crash after indulging in blank sales and wash trade, it may follow fresh massive unloading by the big ones,” a leading stock analyst Hasnain Asghar Ali fears.

Faisal Abbas, a stock analyst, says the market jolted by the proceedings on the National Assembly probe committee meetings and the counter allegations by high-ups, it could take quite sometime to be back on the rail as investors will await final verdict before resuming normal trading.Minus signs dominated the list under the lead of Arif Habib Securities and Wyeth Pakistan, off Rs18.20 and Rs30 followed by Treet Corporation, Jahangir Siddiqui & Co, National Bank, MCB, National Refinery, EFU Life, PSO, Attock Petroleum, Pakistan Petroleum and Pakistan Oilfields, which suffered fall ranging from Rs8 to Rs14.65.

Leading gainers, which managed to finish higher, notable among them being Jahangir Siddiqui Capital Market Fund and Artistic Denim, up Rs8.90 and Rs10.75 followed by HinoPak Motors, Associated Industries, Clover Pakistan, Pakistan Cables and some others, which posted gains ranging from Rs4.20 to Rs8.

Trading volume fell to 128m shares from the previous 174m shares as losers forced a strong lead over the gainers at 217 to 61, with 23 shares holding on to the last levels.

National Bank topped the list of actives, off Rs10.25 at Rs215.25 on 17m shares followed by OGDC, lower Rs6.35 at Rs123.65 on 14m shares, Bank of Punjab, easy Rs3.65 at Rs81 on 10m shares, MCB, off Rs10.90 at Rs207.60 on 8m shares, Pakistan Petroleum, lower Rs9.90 at Rs200.85 on 7m shares and Pakistan Oilfields, off Rs14.65 on 4m shares.

Other actives were led by Fauji Cement, easy 75 paisa on 10m shares, D.G. Khan Cement, off Rs4.50 on 8m shares, Lucky Cement, lower Rs5.30 on 6m shares and WorldCall Telecom, easy 50 paisa on 4m shares.

FORWARD COUNTER<./b>: National Bank also remained under pressure on the cleared list in sympathy with its ready counter share and fell by Rs10.55 at Rs216.35 on 6m shares followed by OGDC, off Rs6.50 at Rs124.35 on 3m shares and MCB, lower Rs11 at Rs209 also on 3m shares.

Other actives were led by Pakistan Petroleum, off Rs10.60 at Rs201.85 on 3m shares and Bank of Punjab, lower Rs3.45 at Rs81.70 also on 3m shares. Others were also modestly traded in the absence of fresh support.

DEFAULTER COS: Trading on this counter was also insipid in the absence of fresh demand from any quarter, rather there were more sellers than buyers. Prices though fell fractionally but covered all the counters. There was no large business in any of the current favourites.

DIVIDEND: KASB Liquid Fund, bonus shares at the rate of 9.8pc, United Money Market Fund, cash 10pc, United Growth & Income Fund, 9.25pc and Meezan Islamic Fund, bonus shares at the rate of 35pc.

BOARD MEETINGS: Zephyr Textiles on July 14, Dawood Money Market Fund on July 15, Fayzan Modaraba on July 18 and Fauji Fertiliser Bin Qasim on July 25.