KARACHI, May 27: The KSE 100-share index on Friday plunged by another 198 points on panic-selling triggered by reports of a bomb blast in a shrine in Islamabad and heavy death toll. Much of the selling remained confined to the leading base shares, which fell like house of cards as buyers kept to the sidelines.

The KSE 100-share index fell by another 197.71 points after early rise and was last quoted at 6,467.15 as all the base shares came in for renewed selling after the news of bomb blast. Market capital also fell by Rs50.00bn at Rs1,821bn. According to initial reports 18 persons were killed and many injured followed by a panic among the devotees who were celebrating the annual festival of Bari Imam.

As the news of the bomb blast reached the stock market there was a spate of selling orders as shaky investors indulged in panic-selling but there were not many willing buyers. The opening was a bit promising followed by active short-covering in the leading base shares, notably PTCL, PSO, OGDC, Pakistan Oilfields and Pakistan Petroleum at the lower levels and it was speculated that closing could be a bit better despite weekend considerations.

“The market may not have yet dropped below its technical mandate and could shed another few points but the next week, which is a pre-budget week could be very crucial for its future direction”, analysts said.

Pre-budget speculative buying may or may not re-emerge in view of the changing external background news on the law and order front, notably in the backdrop of bomb blast at the Bari Imam shrine, only some budgetary incentives could lure investors back in the market, they said.

The tussle between the bourses and the SECP on some important issues and continued silence by the latter sans “yes or no” is causing fresh unloading in the overvalued oils shares.

“The market is rising and falling with the six leading stocks including PTCL and oil giants and until the buying support is broad based, it would continue to play on a weak wicket”, brokers said.

Unlike the previous sessions, some of the leading shares managed to attract a lot of buying at the lower rates and recovered smartly under the lead of PICIC, Gadoon Textiles, Zulfiqar Industries, Artistic Denim, Gatron Industries, Thal and Shell Pakistan, up by Rs3.10 to Rs11.45. Honda Atlas Cars, Suzuki Motors and Dawood Hercules and some others also rose by Rs2.20 to Rs2.80.

Oil and auto sector led the market decline under the lead of Pakistan Refinery, Attock Refinery, PPL and PSO, off Rs5.35 to Rs15.40, the largest fall being in PSO, followed by Clariant Pakistan, HinoPak Motors, Al-Ghazi Tractors, Atlas Honda, Javed Omer and Wyeth Pakistan, which suffered fall ranging from Rs6 to Rs30.

Trading volume rose to 240m shares from the previous 185m shares but losers maintained a strong lead over the gainers at 150 to 70, with 37 shares holding on to the last levels amid active selling.

The most active list was topped by PTCL, off Rs2.60 at Rs62.85 on 118m shares followed by OGDC, lower Rs4.45 at Rs85.10 on 32m shares, PSO, off Rs15.40 at Rs328 on 16m shares, Pakistan Oilfields, lower Rs2.85 at Rs236.10 on 10m shares, and National Bank, easy Rs1.95 at Rs84.50 on 9m shares.

Other actives were led by D.G.Khan Cement, off Rs1.25 on 7m shares, Pakistan Petroleum, off Rs8.15 also on 7m shares, Fauji Fertilizer Bin Qasim, lower Rs1.20 on 6m shares, Lucky Cement, off Rs1.70 on 4m shares and Pak PTA, easy 20 paisa on 3m shares.

FORWARD COUNTER: PSO also came in for strong selling in the forward section and fell sharply lower by Rs14.28 at Rs328 on 4m shares followed by PPL, lower Rs8.15 at Rs156.15 also on 4m shares, OGDC, lower Rs4.35 at Rs85.15 on 3m shares.