KARACHI, Aug 24: The KSE 100-share index on Thursday broke the psychological barrier of 10,000 at 9,955.23, off 289.46 on panic selling in the pivotals followed by below market expectations dividend by some of the leading companies and submission of no-trust motion against the prime minister leading to political uncertainty.

It, however, finished well above the session’s lowest level of 9,934.96 on active short-covering in some of the leading shares at the dips but in the process wiped out Rs74.00 billion from the market capital at Rs2,801 billion.

It also breached through the barrier of 10,000 points in last June on selling triggered by clearing problems on the forward counter as several short-sellers were trapped as they failed to clear their outstanding dues.

Opinions are, however, divided over its future direction. Some say it could further as the chief motivating factors linked to higher payouts are already on their way out. But falling turnover figures reflects all is not well with the investor perceptions.But some others claim developing political scenario may work against the underlying sentiment but technical factors followed by strong short-covering at the current lower level reached by bank and oil shares could put the market back even tomorrow.

Leading oil shares, notably OGDC, Pakistan Petroleum, National Bank and MCB suffered massively and finished under lower locks amid a panic which engulfed the entire market, floor brokers said.

An interim cash dividend of 20 and 25 per cent by MCB, and ICI Pakistan, respectively, were said to be well below the analyst predictions and weighed down heavily against the broader market triggering panic selling but no willing buyer even at the dips as was reflected by sharp fall of Rs6 and 11.15 in their share values.

The other contributory factor was talk of lower dividend by the oil giant Pakistan Oilfields whose board meeting is due during the next week

“The market was already groaning under the weight of negative political developments and the lower payouts further aggravated the situation,” analysts said.

Minus signs dominated the list but some leading shares managed to finish higher by Rs12.80 and 101.75 under the lead of Attock Petroleum and Wyeth Pakistan, followed by Clariant Pakistan, Pakistan Refinery, Colgate Pakistan, and Pakistan Cables, up by Rs5.40 to 10.35.

Pakistan Services and Pakistan Oilfields fell by Rs16.50 and 18.05, respectively. They were followed by Adamjee Insurance, National Refinery, MCB, National Bank, PSO, Shell Pakistan, Pakistan Petroleum and Pakistan Oilfields, which suffered fall ranging from Rs8 to 11.40.

Trading volume was light totalling 121m shares as losers maintained a strong lead over the gainers at 199 to 72, with 33 shares holding on to the last levels.

Bank of Punjab topped the list of actives, off Rs4.45 at Rs84.70 on 15m shares followed by Pakistan Petroleum, sharply lower by Rs11.40 at Rs231.80 on 12m shares, OGDC, off Rs3.75 at Rs126 on 11m shares, Pakistan Oilfields, easy by Rs18.05 at Rs342.95 on 8m shares, National Bank, off Rs11.25 at Rs214.65 also on 8m shares, PTCL, lower by Rs1.60 at 6m shares and MCB, off Rs11.45 at Rs212.45 on 4m shares.

Other actives were led by D.G.Khan Cement, off Re one on 7m shares, Fauji Fertiliser Bin Qasim, easy 75 paisa on 4m shares and Telecard, lower 50 paisa also on 4m shares.

FORWARD COUNTER: OGDC came in for active selling and fell by Rs3.90 at Rs124.10 on 5m shares its August settlement fell by Rs4.25 at Rs125.50 on 4m shares followed by Pakistan Petroleum, off Rs11.50 at Rs235 on 4m shares.