KARACHI, July 28: The KSE 100-share index again took a massive plunge of 453.88 points or 4.11 per cent at 10,578.49 on nervous foreign selling in oil and banking shares triggered by reports of missile attack from across the border and spy planes’ sorties over the FATA and the resultant political uncertainty.

Investors are worried over the situation developing in the tribal areas, notably occasional missile attacks by the Nato forces from Afghanistan and the warning to “do more” by the high-ranking US officials, which could aggravate the law and order situation in the coming weeks across the border, most analysts fear.

“Weak economy, perception of a tight monetary policy amid talk of hike in interest rates and falling rupee added to the horror of foreign investors followed by panic selling and lower locks in most of the shares having massive foreign exposure,” said a leading analyst Hasnain Asghar Ali.

Leading shares, notably MCB Bank, OGDC, Arif Habib Securities, Habib Bank, Engro Chemical and some others were battered massively on persistent selling and took the entire market along with it in the minus column. The KSE 30-share index also suffered sharp decline of 4.23 per cent or 529.27 points at 11,996.57.

The plunge chipped away half of the last week’s gain of 800 points and Rs136 billion from the market capital just in one go, sending shock waves among the institutional traders, who were unable to absorb the foreign float even at the decline, another analyst Ahsan Mehanti said.

“The prime minister’s US ‘yatra’ has always been a big morale booster for the share market for more than one reasons, notably the proverbial American generosity,” said Ashraf Zakaria,” but the current visit is greeted by a massive fall of 4.11 per cent for unknown reasons.”

He said what seems to be the unique commodity now is the lack of investors’ confidence in the share business and the government economic policies and until both are investment-friendly, the market will continue to groan under the weight of selling.

There was no trace of the last week’s tangible improvement caused by the strong institutional support both in terms of value and volume when the trading resumed as a spate of both foreign and local selling kept investors at their toes all the time and could not precisely decide how to react, he added.

Minus signs dominated the list under the lead of Bata Pakistan and Shell Pakistan, off by Rs40.83 and 21.60. Other prominent losers were Adamjee Insurance, JS Global, JS & Co, EFU General and Life, Attock Refinery, Attock Petroleum, Shell Pakistan, PSO, Pakistan Petroleum, Pakistan Oilfields, Mari Gas, Al-Ghazi Tractors,