KARACHI, Aug 4: The KSE 100-share index on Monday plunged below 10,000 level at 9,853.18, off 318.21 points or 3.13 per cent on nervous selling after the MQM chief vowed to fight out the alleged Talibanisation of the city, but the chief minister denied a loud whispering about the issue.

“The fall of the index into 4-digit figure amid fresh lower locks, signals that all may not be well on the bourse in the coming weeks also until the government steps in to salvage the situation after taking some more corrective steps,” most analysts believe.

Already weighed down by economic worries including the falling rupee against the US dollar, weak economy and high inflation, the threat of bloodshed in the city appears to be the last straw that will break the camel’s back, analysts said.

Although the chief minister of Sindh denied the threat of Talibanisation, but the MQM insists on their presence in the city and intend to fight them out, which analysts fear could lead to bloodshed in coming weeks.

“The country risk factor in the developing situation, notably the US warning to rein in the ISI and do more in Fata may not be around but investors hate to investment until sanity returns to the capital market,” they added.

The recomposed 100-share index surpassed its base of 10,000 points at 10,304.72 on March 15, 2005 on heavy buying in OGDC and D.G. Khan Cement, but breached through it at 8,050.25 on April 4, 2005 for the first time and then steadily soared to all-time high so far at 15,674 points early this year.

The current breach is the second in its eight-year career and more disturbing amid loud whispering that it could fall to any lows in the developing scenario on all the fronts amid continued lower locks on the blue chip counters, some analysts fear. The opening was on the higher side as the KSE index rose by 111 points on reports of settlement of margin calls on well over three dozen brokers in last Saturday’s special session, but a galore of fresh lower locks in the session could further aggravate the situation, said a leading broker.

Minus signs dominated the list under the lead of Nestle Pakistan and Bata Pakistan, off by Rs64.41 and Rs28.92, followed by Al-Ghazi Tractors, JS & Co, MCB Bank, EFU General and Life, Sapphire Fibres, Attock Petroleum, PSO, Shell Pakistan, and Sitara Chemicals, which fell by Rs10 to Rs17.73, PSO being the leading loser.

But on the other hand Dawood Hercules and Murree Brewery managed to finish higher by Rs12.85 and Rs7. Others gainers included Dawood Bank, Shaheen Insurance, Atlas Battery, Javedan Cement and Atlas Honda, which rose by Rs2.50 to Rs6.40.

Trading volume rose to 131m shares from the previous 73m shares but losers held a strong lead over the gainers at 221 to 44, with 13 shares holding on to the last levels.

NIB Bank again topped the list of actives, easy by two paisa at Rs8.96 on 14m shares followed by D.G. Khan Cement, off Rs2.58 at Rs48.95 on 11m shares, National Bank, down Rs5.68 at Rs108.08 on 8m shares, Arif Habib Securities, lower by Rs6.34 at Rs120.65 on 7m shares and Nishat Mills, lower by Rs3.04 at Rs57.76 on 5m shares.

OGDC lost Rs4.64 on 5m shares and Pakistan Petroleum shed Rs6.42 at Rs194.51 also on 5m shares.

Other actives were led by Zeal-Pak Cement, lower by 13 paisa at Rs1.57 on 11m shares, followed by Fauji Fertiliser Bin Qasim, lower by Rs1.14 at Rs24.70 on 4m shares and Lucky Cement, off Rs3.70 at Rs70.31 also on 4m shares.

FORWARD COUNTER: OGDC came in for fresh selling and fell by Rs4.29 at Rs105.44 on 2m shares followed by Descon Oxychem, up by Re1 at Rs12.88 also on 2m shares and NIB Bank, lower by seven paisa at Rs9 on 2m shares.

Pakistan Oilfields followed them, off by Rs10.77 at Rs265 on 1m shares and Pakistan Petroleum, lower by Rs5.83 at Rs197 also on 1m shares.

DEFAULTER COMPANIES: The activity on this counter was relatively slow in the absence of leading buyers and prices generally fell where changed under the lead of Norrie Textiles, lower by 11 paisa at Rs1.61 on 0.595m shares followed by Japan Power, easy by 39 paisa at Rs4.65 on 0.270m shares and Unity Modaraba, unchanged at 75 paisa on 0.115m shares.