KARACHI, May 8: The KSE 100-share index plunged 3 per cent or 55 points on panic-selling triggered by reports of early morning suicide bomb attack near a local hotel killing over a dozen persons including foreigners, eroding Rs.13bn from the market capitalization just in one go.

“There was panic all around after the opening as everyone hastened to get out of the market after liquidating long positions even at throw away prices,” stock analysts at the WE Financials commenting on the post-bomb blast market said adding “the future sailing is fraught with high risks at least as far as foreign buying is concerned.”

The psychological jolt came in the backdrop of pre-budget bullish predictions, and how the market will react now is difficult to predict as the killing of foreigners could have far-reaching negative impact on the future outlook, some brokers believe.

Over the last three days, the index has fallen by 113 points or 6.5 per cent, sending signals that all may not be well with investor perceptions about the law and order situation and future market outlook in the coming weeks.

“The suicide attack could cause the outflow of foreign investment rather than attracting it as is speculated in the changing financial scenario,” stock analysts at the Moosani Securities say. “The outlook is uncertain and it is not that easy to predict how much the index could erode further its current rise of about 800 point or 45 percent since January this year.”

The selling was so aggressive and hasty at one stage it appeared that the market will crash but strong institutional support came to its rescue and allowed it to finish partially recovered from the early lows. After having fallen about 70 points, the index ended partially recovered.

“Just at the heels of murder of a prominent Lahore-based religious scholar on Tuesday night, the local bomb blast has created uncertain law and order conditions, not conducive to foreign investment,” stock analysts at the Al-Mal Securities fear.

Share prices fell like nine pins across the board under the lead of MNCs and blue chips such as PSO and Shell Pakistan as there were more sellers than buyers.

Most of the gains were fractional barring Faisal Spinning and Dawood Hercules, Janana Demalucho Textiles, and Glaxo-Wellcome, which rose by Rs.1.75 to 2.25, while Lever Brothers and Wyeth Pakistan, which omitted the dividend for the last year, were leading among the losers, off Rs.35.50 and 25.25 respectively.

Other prominent losers were led by Javed Omer, Adamjee Insurance, Shafiq Textiles, National Refinery, Al-Ghazi Tractors, Siemens Pakistan, Engro Chemical, Highnoon Lab, Otsuka Pakistan and Packages, which suffered fall ranging from Rs.2.20 to 6.30.

Trading volume swelled over the 200m share mark at 205.522m shares but losers maintained a strong lead over the gainers at 219 to 42, with 21 shares holding on to the last levels.

Hub-Power led the list of actives, off 65 paisa at Rs.24.55 on 73m shares followed by PTCL lower one rupee at Rs.17.60 on 64m shares, PSO, off Rs.6.30 at Rs.154.55 on 15m shares, FFC-Jordan Fertilizer, easy 10 paisa at Rs.6.55 on 10m shares and Sui Northern, lower 30 paisa at Rs.13.90 on 9m shares.

National Bank topped the list of other losers, off Rs.1.45 on 3.335m shares, KESC, up 10 paisa on 3.232m shares, Dewan Salman, off 90 paisa on 2.514m, ICI Pakistan, off 2.95 on 2.432m shares and Ibrahim Fibre, lower 40 paisa on 2.379m shares.

FUTURE CONTRACTS: Heavy selling was also witnessed on the forward counter where ICI Pakistan, Engro Chemical and PSO showed fall to the extent of Rs.2.80 3.05 and 6.35 respectively on large volumes.