KARACHI, Oct 31: Stocks on Tuesday fell from the recent highs on near-panic selling triggered apparently by reports of killing of seven dozen persons in an army action on a seminary in Bajaur and partly to financial risks linked to rollover week for the matured October contracts.

The KSE 100-share index shed 200 points or 1.7 per cent, at 11,328.00, wiping out Rs52 billion from the market capital.

But some analysts said the attack on a seminary was made an excuse by big operators to exit from an overbought market as the basic fundamentals, notably higher payouts by the bank and oil sectors were very terribly positive and did not warrant massive selling.

However, rollover selling pressure from the October to the newcomer November settlements did work against the underlying sentiment but late

buying at the dips by the financial institutions averted a major shakeout. Below market expectations earning by PSO was another bearish factor.

The KSE 100-share index shed 200.56 points or 1.74 per cent at 11,327.71 as most of the leading base shares finished close to their lower locks under the lead of MCB, National Bank, OGDC, and Pakistan Petroleum. The KSE 30-share index fell by 212.46 points at 13,769.21.

“What seems to have sent shock waves among the investors and brokers was conflicting reports about the Bajaur action as claimed by the army,” says a leading stock analyst “If the Nato is involved as claimed by some leading tribal chiefs the situation could take a serious turn as far as the law and order situation is concerned.”

Although leading market players were not inclined to go by the negative external factors, the selling, which originated from foreign investors did create panic-like conditions for sometimes followed by hasty selling.

But some others hope the positive market fundamentals may not allow further extension of the snap bear-run and the psychological shock could be absorbed even tomorrow.

Most of the leading shares, notably in the banking and oil sectors have, during the Ramazan run-up, assumed overvalued positions and needed correction that came in the form of Bajaur killings.

Minus signs strewn all over the list, major losers being Pakistan Refinery, Shell Pakistan, National Bank, MCB, Pakistan Petroleum, falling by Rs4.10 to 21.50.

Other leading losers were United Bank, IGI Insurance, Attock Petroleum, Pakistan Oilfields, Clover Pakistan Gillette Pakistan, off RS6.25 to 9.

But PTCL did not follow the lead of other pivotals and was quoted higher by one rupee at Rs44.60 despite reports of six per cent fall in earnings.

Among the gainers, Zulfiqar Industries and EFU General Insurance were

Leading, up by Rs7.15 and 8.10 followed by Atlas Insurance, Sapphire Fibre, Shell Gas, Mari Gas, HinoPak, Indus Motors, and Pak-Suzuki Motors were leading, up by Rs4 to 5.70.

Trading volume was maintained around the previous level of 283m shares but losers forced a strong lead over the gainers at 206 to 112 with 32 shares holding on to the last levels.

PTCL topped the list of actives, higher by one rupee at Rs44.60 on 32m shares followed by National Bank, sharply lower by Rs12.40 at Rs280 on 29m shares, Bank of Punjab, easy by 10 paisa at Rs100.35 on 24m shares, OGDC, lower by Rs4.10 at Rs148.70 on 22m shares, Bank Alfalah, lower 20 paisa at Rs50.45 on 22m shares, MCB, off Rs6.95 at Rs274.50 on 12m shares and Pakistan Petroleum, easy by Rs6.05 at Rs255.50 on 11m shares.

Other actives were led by PICIC, lower Rs1.50 on 15m shares, Crescent Bank, easy five paisa on 11m shares and Fauji Fertiliser Bin Qasim, steady by five paisa also on 11m shares.

FORWARD COUNTER: PTCL also came in for active support on the cleared list and was quoted higher by Rs1.02 at Rs44.62 on 11m shares followed by its November contracts, higher by Rs1.20 at Rs20 on 10m shares.