KARACHI, Nov 1: The KSE 100-share index on Wednesday took a massive plunge of three per cent or 317.12 points on panic selling triggered by broker reservations to the new SECP trading rules to be effective from Nov 6.

But some others attributed the sell-off to rollover week and higher leveraging in the rung off October settlements and the tight money market further accentuated the situation leading to panic selling to meet clearing demands.

“It was a judicious blend of both technical selling and the apprehensions about a massive increase in deposits against broker exposure limits after the new rules were implemented,” brokers said.

The KSE 100-share index plunged by another 317.12 points at 11,010.59 as compared to 11,327.71 a day earlier as all leading base shares ended around the lower locks under the lead of National Bank, OGDC, Pakistan Petroleum and Pakistan Oilfields.

“The bull rout was total for the second session in a row as selling offers far-outweighed the buying ones”, said a leading analyst commenting on the falling market and the prevailing panic “everyone wants to get out of the market irrespective of the massive trading losses.”

“Small investors will again be the chief loser as big ones have more than one exit points to bail themselves out in identical situations leading to market crash,” investors said adding ”the market has crashed by more than 500 points eroding billion of rupees from the savings of small investors.”

The Security and Exchange Commission of Pakistan (SECP), an apex regulatory body for the bourses has, through a directive, ordered the stock exchanges to operate under the new rules and regulations framed by it leading to more transparency in the share business.

“Under the new rules deposits against broker exposure limits will double,” says a leading stock analyst “from where the additional funds would be raised to meet the margin demands in the prevailing tight liquidity market.”

In some cases deposit demands against exposures could rise to 100 per cent as it will cover both selling and buying operations, he added.

The current confusion about the new rules is expected to be over

possibly by tomorrow after the proposed meeting of bourses chiefs called by SECP chairman, some others said adding:”If the fears of the brokers are allayed the market could rebound by the same amount as did it lose during the last two sessions.”All was, however, not that bad with the broader market as some leading shares managed to put on good gains under the lead of Shell Gas, which has been under pressure on post-dividend selling and Colgate Pakistan, up by Rs10.85 and 15, respectively. JAVEDAN Cement, Pakistan Cables, National Foods, EFU General and Pakistan Refinery followed them, up by Rs4 to 8.70.

Losers were led by Pakistan Oilfields and PSO, off by Rs14.55 and 15, followed by Jahangir Siddiqui Capital, National Bank, United Bank, Attock Petroleum, Shell Pakistan, Pakistan Petroleum, Mari Gas, Atlas Honda, off Rs7.15 to 11.

Trading volume fell to 228m shares from the previous 283m shares as gainers trailed far behind the losers at 82 to 223, with 39 shares holding on to the last levels.

OGDC topped the list of actives, off Rs6.45 at Rs142.25 on 32m shares followed by National Bank, sharply lower by Rs10.50 at Rs274.50 on 25m shares, Bank Alfalah, easy by 50 paisa at Rs50 on 19m shares, PTCL, lower Rs1.10 at Rs43.50 on 16m shares, MCB, up 25 paisa at Rs274.75 on 14m shares, PICIC, higher by Rs2.05 at Rs67.40 on 12m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, easy five paisa on 12m shares, Pakistan Petroleum, off Rs10.45 on 11m shares and Pakistan Oilfields, lower by Rs14.55 on 7m shares.

FORWARD COUNTER: National Bank came in for renewed selling and was marked further down by Rs11.20 at Rs276.50 on 9m shares followed by OGDC, off Rs6.70 at Rs143.40 on 7m shares and MCB, lower Rs1.50 at Rs275.50 on 6m shares.