KARACHI, Aug 9: The KSE 100-share index on Thursday plunged by 385 points as investors indulged in panic-selling on media reports of imposition of emergency. However, the market capital suffered a loss of Rs115bn as official denial came a bit late.

The market, however, could have run into a deeper recession in case the emergency was declared by the president as it would signal the exit of leading foreign investors, but the official denial could put the market back on the rails even on Friday as investors would cover positions at the lower levels, said a leading analyst.

But more optimistic among the investors termed the market fall to psychological factors based on speculation rather than real news and market could bounce back if emergency was not imposed.

“All may not be well in corridors of power in Islamabad,” said a leading analyst, adding “the message has aptly been picked up by all and sundry”.

After having fallen at one stage to session’s low at 12,947.18, off 617 points, it managed to finish partially recovered on active short-covering to stay well above the 13,000-level at 13,179.41.

The market capital plummeted to Rs3,854bn.

All the leading base shares, notably OGDC, MCB, National Bank, Askari Bank and Hub-Power encountered near-panic selling and fell sharply.

The free-float KSE 30-share index shed 432.60 points at 15,848.71 as compared to overnight’s 16,281.31.

Trading resumed amid a terrible panic as investors could not precisely decide how to react to the media reports and held on to their positions but their weaker links hastened to liquidate long positions to avoid fresh financial risks.

Among the leading gainers, Fazal Textiles and HinoPak Motors were leading up by Rs15 and Rs15.50 followed by Premium Textiles, JS Global, Javedan Cement, Pakistan Engineering and KSB Pumps, which rose by Rs2 to Rs7.85.

JS & Co and Siemens were prominent losers, off Rs46 and Rs81 respectively. Other major losers were led by Javed Omer, Arif Habib Ltd, Adamjee Insurance, EFU General, IGI Insurance, Pakistan Resource Company, Sapphire Fibres, National Refinery, Attock Petroleum, Indus Motors, Dawood Hercules, Sanofi-Aventis, Packages and Nestle Pakistan, which suffered fall ranging from Rs10.50 to Rs40.

Trading volume rose to 263m shares from the previous 177m shares as losers forced a strong lead over the gainers at 297 to 47, with 17 shares holding on to the last levels.

Askari Bank led the list of actives, off Rs1.65 at Rs97.15 on 15m shares followed by OGDC, lower by Rs2.55 at Rs118 on 15m shares, Arif Habib Securities, off Rs4.40 at Rs127 on 14m shares and National Bank, easy by Rs6.80 at Rs246.10 on 13m shares.

Hub-Power, lower Rs1.45 at Rs31.80 on 10m shares, Fauji Fertiliser Bin Qasim, off Rs1.80 at Rs44.15 also on 10m shares and Bank Alfalah, off Rs1.75 at Rs53 on 9m shares.

Other actives were led by TRG Pakistan, off 85 paisa on 13m shares, Bosicor Pakistan, lower 80 paisa on 12m shares and Pak PTA, easy by 45 paisa on 8m shares.

FORWARD COUNTER: Habib Bank led the list of actives on this counter, off Rs5.75 at Rs313.30 on 7m shares followed by National Bank, easy by Rs6.15 at Rs2.48 on 7m shares and MCB, off Rs3.60 at Rs311.40 also on 7m shares.