KARACHI, June 16: The Karachi Stock Exchange (KSE) 100-share index on Monday plunged by about four per cent on panic selling triggered by Afghan president’s threat to send troops to Pakistan to haunt Al-Qaeda militants.

“Karzai may not have the courage and will to invade Pakistan,” said a leading analyst, adding “what worried investors was the perception that the veiled threat may have come from Nato commanders through him.”

There was a near-panic and confusion all around in the already terribly fragile bourse as investors tried to get out of the market but failed to find many willing buyers even at the dips.

The market’s near-collapse below the resistance level was evident from a massive single session decline of 497.43 points or 3.84 per cent at 12,444.13,which wiped out Rs158 billion from small savers investment in the shares business.

The free float-30 share index on the other hand suffered its highest single session fall and was off by 4.51 per cent or 687.26 points at 14,552.29.

Banking shares, followed by reports (subsequently denied) that the government may withdraw its deposits from the five leading banks, including National Bank and leading oil shares, notably OGDC, Pakistan Oilfields led the market decline on active selling at the still attractively higher levels.

The other factor, which aggravated the situation, was foreign agencies poor rating of Pakistani currency and its relative weakness in the coming months, also followed by a galore of lower locks on all the blue chip counters, analysts said.

The local political uncertainty continued to take its toll also as benefits of exemption in the capital gains tax and some other relief for the capital markets were overshadowed by negative external developments, analyst Faisal A Rajabali said.

“The daily low volume figures show that huge amounts of money may have outflown to other safe havens,” analyst Hasnain Asghar Ali said, adding “others are on the threshold of finding some other profitable investment avenues.”

The near-term outlook for the share business appears to be bearish, which is well-reflected in the falling daily turnover figures, reflecting the absence of investors, analyst Ahsan Mehanti predicts.

Top gainers were led by Exide Pakistan and Dreamworld, up by Rs5.70 and Rs5.35, followed by Shaheen Insurance, Pakistan Cables, AKD Capital and Admjee Insurance, which rose by Rs1.70 to 5.15.

Leading losers were led by JS & Co, EFU Life, EFU General, Pakistan Oilfields, and Wyeth Pakistan, off by Rs20.05 to Rs103, respectively. Other leading losers, which also faced lower locks included Arif Habib Ltd, JS Global, MCB Bank, Attock Refinery, Attock Petroleum, PSO, Al-Ghazi Tractors, Dawood Hercules, Packages and Colgate Pakistan, off by Rs12.99 to Rs22.10.

Trading volume was light at 108m shares as compared to 104m shares at the last weekend as losers held a strong lead over gainers at 251 to 44, with 14 shares holding on to the last levels.

NIB Bank led the list of actives, easy 60 paisa at Rs12.40 on 6m shares followed by Adamjee Insurance, higher by Rs5.15 at Rs276.40 on 5m shares, D G Khan Cement, off by Rs3.72 at Rs70.68 also on 5m shares, National Bank, sharply lower by Rs8.65 at Rs164.35 on 5m shares, OGDC, lower by Rs4.95 at Rs125 on 4m shares, Arif Habib Securities, off Rs8.55 at Rs162.50 on 4m shares and Pakistan Petroleum, sharply lower by Rs11.50 at Rs257.50 on 3m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, lower by Rs1.20 at Rs36.75 on 3m shares, Azgard Nine, off Rs3.30 at Rs62.70 also on 3m shares and Nishat Mills, Rs4.92 at Rs93.58 also on 3m shares.

FORWARD COUNTER: MCB Bank led the list of leading losers on this counter, sharply lower by Rs15.77 at Rs299.73 on 4m shares, followed by National Bank, off Rs8.75 at Rs166.25 on 3m shares, OGDC, lower by Rs4.65 at Rs125.70 on 2m shares, and Engro Chemical, off Rs15.23 at Rs289.37 also on 2m shares.

DEAFULTER COs: Share values on this counter also followed the lead of their counterparts in the ready section and fell under the lead of Norrie Textiles, easy by 11 paisa at Rs2.20 on 1.391m shares followed by Zeal Pak cement, easy by eight paisa at Rs2.90 on 0.569m shares, Nazir Cotton, lower by 11 paisa on 0.416m shares and Japan Power, easy by 20 paisa at Rs6.31 on 0.289m shares.