KARACHI, June 26: The KSE 100-share index on Monday took another massive plunge of 402.83 points or 4.11pc at 9,404.70 on panic-selling triggered by annulment of Pakistan Steel sale deal by the apex court and analysts fear the verdict would have a depressing impact on the stock market in the coming sessions also and may slowdown the privatisation process of state–owned companies.

The opening was, however, on the higher side as the index early recovered 122 points from the weekend loss aided by extension of ban on short selling on the forward counter but after that the negative fall-out of the apex court ruling gripped the market as bears exploited it to the maximum limits for no apparent immediate technical compulsions, brokers said.

Although the Supreme Court’s verdict is not against the government’s privatisation policy as it questioned the procedures adopted by the relevant authorities to dispose of Pakistan Steel, which apparently lacked transparency and should have been taken by the investors in that spirit rather making it a scapegoat for the outflow of capital.

During the last two sessions, the index has lost 766.30 points or 7.68pc wiping out Rs107bn from the market capital at Rs2,641bn as all the leading base shares again finished with lower locks on active selling sans buyers at the falling prices.

The month of June was terribly bad for the stock traders as the index suffered biggest single-session fall of 547.93 on June 14, followed by 417.95 on June 13, 363 and 403 points during the last two sessions.

Leading base shares including OGDC, Pakistan Petroleum, Pakistan Oilfields, National Bank, PTCL and MCB led the market decline falling sharply lower but failed to attract many buyers as no was inclined to make fresh commitments in the developing situation on the corporate front.

“The negative fallout of the apex court verdict appears to be psychological rather than pragmatic,” some analysts said “speculative forces made it look so at least for the near-term”.

But some others said the verdict would affect the future sales of PSO, Pakistan Petroleum and some other in more then one ways including lower valuations and curtailed foreign participation. “The sell-off is meant to attract foreign investment and latest technology to improve the operational efficiency to the units under sale,” they added.

What worried most of the leading analysts were fears that sell-off of PTCL, Habib Bank and KESC may be challenged in the apex court, which will certainly put further pressure on stock trading.

The disturbing factor was that both the leading investors and financial institutions were cons-

picuous by their absence perhaps owing to fag-end of the fiscal and most of the price decline was on this account.

Minus signs dominated the list under the lead of Shell Pakistan and Nestle Pakistan, off Rs24.80 and Rs36.95. Other leading shares which suffered fall ranging from Rs10.10 to Rs23.50 were led by Arif Habib Securities, National Bank, MCB, IGI Insurance, Pakistan Refinery, Attock Petroleum, PSO, Pakistan Oilfields, Pak Suzuki Motors and Dawood Hercules.

Millat Tractors and Lakson Tobacco managed to finish higher by Rs9.50 to Rs11.60 followed by Fazal Cloth, Shahtaj Sugar, Atlas Honda, Excide Pakistan, Gillette Pakistan and Gatron Industries, up by Rs2 to Rs7.

Trading volume fell to a modest total of 151m shares from the previous 248m shares as gainers trailed far behind the losers at 54 to 267, with 25 shares holding on to the last levels.

OGDC led the list of actives, off Rs6.60 at Rs126 on 27m shares, followed by National Bank, lower by Rs10.40 at Rs198.15 on 15m shares, MCB, easy by 10.05 at Rs191.30 on 10m shares, Pakistan Petroleum, off Rs10.10 at Rs192.65 on 9m shares, PTCL, lower Rs2 at Rs38.60 on 8m shares and Pakistan Oilfields, off Rs16.50 at Rs313.65 on 6m shares.Other actives were led by D.G. Khan Cement, off Rs4.50 on 9m shares, UTP Growth Fund, lower Re1 on 5m shares, Lucky Cement, easy Rs5.25 also on 5m shares and Bank of Punjab, Rs3.90 on 4m shares.

FORWARD COUNTER: Panic-selling was also witnessed on the forward counter where pivotals fell in unison under the lead of OGDC, off Rs6.65 at Rs12.35 on 5m shares, followed by National Bank, lower Rs10.45 at Rs198.55 also on 5m shares and MCB ,off Rs10.09 at Rs191.71 on 4m shares.

D.G. Khan Cement also came in for active selling and fell by Rs3.49 at Rs85.36 on 3m shares and Pakistan Petroleum, off Rs10.19 at Rs193.71 also on 3m shares. Others were modestly traded mostly on the lower side. The notable feature was that trading also resumed in the July settlements which also fell in sympathy with their ruling June counterparts.

DEFAULTER COS: Owing to massive fall in the ready section, activity on this counter was sluggish as investors were not inclined to make fresh commitments. Among the actively traded shares, Crescent Standard Bank was leading, lower by 25 paisa at Rs4 on 0.194m shares.

DIVIDEND: Exide Pakistan, cash 15pc, Automotive Battery, nil.