KARACHI, June 18: Stocks on Wednesday again fell across the board on hasty foreign selling triggered by reports that the Senate Committee has recommended to the National Assembly 100 per cent increase in Capital Value Tax from 0.2 per cent to 0.4 per cent on share market transactions. The KSE 100-share index shed another two per cent at 12,261.07 points, eroding Rs71 billion from the market capital at Rs3,775 billion.

But what was more disturbing was that there were more sellers than buyers in a virtual prevailing panic caused by the local political uncertainty and the changing geo-political environment.

The KSE 100-share index was off by 236.79 points or 1.89 per cent at 12,261.07 as the entire leading base shares, notably MCB Bank, National Bank, on reports of proposed three per cent increase in income tax, OGDC, Lucky Cement, and Arif Habib Securities suffered fresh sharp fall on renewed selling. The 30-share index on the other hand posted larger fall of 412.77 points at 14,194.45 or 2.83 per cent.

“The market is now in a real trouble cornered by a spate of negative news and no immediate safe exit,” analyst Hasnain Asghar Ali said, adding: “It could take a sigh of relief if the sanity returns to political leaders and they get to work than indulging in press statements”.

Another leading analyst Ahsan Mehanti said continued selling by foreign funds on the banking and cement sectors did not allow the market to take even a technical breather and prices kept falling without finding any willing buyer even at the dips.

“A loud talk to increase the Capital Value Tax, and cut in margin of refineries and oil marketing companies was another immediate depressant,” he said.

Analyst Ashraf Zakaria thinks the post-election dust raised on the political front on some core issues, including the reinstatement of judiciary has taken away the positive impact of exemption in capital gains tax and some other fiscal relief in the national budget.

The falling daily turnover figures indicate that the worst still may have to come as investors are progressively shifting to other profitable investment avenues, he said.

Some of the inactive issues came in for stray support and rose by Rs7.94 and Rs11.07 for KSB Pumps and Treet Corporation, followed by EFU Life, Island Textiles, Bhanero Textiles, AKD Capital, Dreamworld, and Habib Bank, which rose by Rs4 to Rs7.93.

Top losers were led by JS & Co and Dawood Hercules, off by Rs25.15 and Rs15.63, respectively. They were followed by Arif Habib Ltd, National Bank, EFU General, New Jubilee Insurance, Attock Refinery, Pakistan Oilfiedls, Indus Motors, Pak-Suzuki Motors, Exide Pakistan, Packages, and MCB, which suffered fall ranging from Rs8 to Rs13.50.

Trading volume again fell to 120m shares from the previous 129m shares as losers held a strong lead over the gainers at 193 to 80, with 22 shares holding on to the last levels.

KESC came in for modest support and led the list of actives, up by 94 paisa at Rs5.49 on 10m shares followed by Lucky Cement, off Rs3.38 at Rs96.80 on 9m shares, D. G. Khan Cement, off Rs2.79 at Rs66.01 on 8m shares, Arif Habib Securities, sharply lower by Rs7.80 at Rs157 on 6m shares, OGDC, easy by Rs1.50 at Rs125 on 5m shares, National Bank, off by Rs8.25 at Rs156.75 on 4m shares and Bank Alfalah, lower by Rs1.39 at Rs42.60 on 3m shares.

Other actives were led by NIB Bank, lower 63 paisa at Rs11.72 on 7m shares, Bank of Punjab, easy 21 paisa at Rs33.80 on 5m shares, and Nishat Mills, off Rs4.56 at Rs86.69 on 3m shares.

FORWARD COUNTER: MCB led the list of actives on the cleared list, sharply lower by Rs14.65 at Rs278.35 on 5m shares, Lucky Cement, lower by Rs4.50 at Rs97.15 on 4m shares and Engro Polymer, lower Rs1.75 at Rs33.35 also on 4m shares.