KARACHI, Jan 8: Shares on Tuesday beat a hasty retreat as a section of investors indulged in hasty selling disappointed apparently by the British prime minister’s visit and his failure to defuse the border tension. The KSE index shed 29 points at 1,369.38.

Blue chip shares led the market decline and fell sharply lower without finding matching buying from any quarter, mega issues, notably, PTCL, PSO and Hubco being in the forefront.

Investors seem to have attached too much importance to Tony Blair’s visit after New Delhi yatra hoping Pakistan’s peace overtures could find a positive response from India to defuse the border tension but there was no apparent change in the situation.

No one could deny the fact that prevailing uncertainty, notably war or no war with India, has assumed the role of a trend-setter and until the situation changes for the better, the performance of the market may remain volatile despite positive economic fundamentals.

Having failed to breach through the barrier of 1,400 points as widely speculated, the KSE 100-share index fell by 28.89 points at 1,369.38 as compared to 1,398.27, reflecting the distinct weakness of leading base shares amid nervous selling. About Rs.6bn were eroded from the market capital at Rs.315.071bn.

“Nothing tangible came out of Tony Blair’s visit as the tension on the border reflects,” commenting on the market’s snap reversal stock analysts at the W.E.Financials said. “Investors have been expecting some positive steps to defuse the current border tension.”

The other negative factor was the advent of profit-selling as the market has risen by about 100 points or seven per cent during the last couple of sessions and needed correction, they adds.

“Press reports that air power imbalance between Pakistan and India has been cut to minimum after the arrival of shiploads of Chinese unassembled fighter aircraft and other spares worried investors as it intensified the fear of war with India,” fears a leading member of the KSE.

In normal conditions, the report should have boosted the market sentiment but in war-like atmosphere it could mean anything according to general perceptions, he says.

However, despite a relative panic, general investors did not sell in a hurry and held on to their positions but bargain-hunters and some institutional traders liquidated in part their long positions.

The market decline was led by most of the blue chips, which remained under pressure throughout the session, although there were buyers at the dips.

Trading volume fell below the 100m share mark at 91m shares from 156m shares a day earlier, reflecting the investor reluctance to part with their holding amid predictions of an imminent bull-run. Losers forced a strong lead over the gainers at 105 to 43, out of 179 actives.

Hub-Power again topped the list of most actives, off 70 paisa at Rs.18.40 on 41m shares, PTCL, easy 50 paisa at Rs.15.10 on 24m shares, PSO, sharply down by Rs.3 at Rs.98.40 on 5.39m shares, Fauji Fertilizer, off Rs.1.10 at Rs.45.05 on 4m shares and Engro Chemical, lower 30 paisa at Rs.55.10 on 3m shares.

Other actives were led by Sui Northern, lower 40 paisa on 2.474m shares, ICI Pakistan, off Rs.1.75 on 1.870m shares, Nishat Mills, lower 70 paisa on 1.642m shares, FFC-Jordan Fertilizer, easy 30 paisa on 1.599m shares and Adamjee Insurance, off Rs.1.35 on 1.487m shares.

FUTURE CONTRACTS: Forward shares also remained under pressure in sympathy with the ready section and fell sharply under the lead of Fauji Fertilizer, ICI Pakistan and PSO, off one rupee to Rs.2.65 on light trading.