KARACHI: The KSE 100-share index plunged by 154 points on near-panic selling, triggered by reports of Nato attack on military border posts, killing two dozen armymen.
The perception that relations with the US may not be that cordial as have been before the Abbotabad SEAL attack after Pakistan stopped oil supplies to the Nato forces and directed the US to vacate the airbase, analysts said.
The benchmark early was off about 200 points but after mid-session institutional support at the lower levels on the blue chip counters allowed it to finish with a clipped loss of 153.99 points at 11,494.15 as compared to 11,648.14 at the weekend, eroding about 39 billion from the market capital at 2,993.547bn.
Much of the selling was confined to the blue chip counters under the lead of oils, notably Attock Group of Companies, said to be one of the major suppliers of petroleum products to Nato forces.
“The negative reaction to the Nato attack was natural as it has more than one political implications for the government,” said a leading stock analyst Ahsan Mehanti “but ruled out the possibility of any further major fall as investors would await fresh political moves to defuse the tension.”
But he predicted that the future outlook appears not to be that encouraging as heating up of the political scenario in the form of public meetings will continue to unsettle market in the coming weeks also.
But another leading analyst Ashraf Zakria says investors would await further developments based on proxy talks to end the impasse and may hold on to their unsold positions rather selling in panic.
The sharp fall in the traded volume reflects this phenomenon as leading investors held on to their positions awaiting further developments on the political front before indulging in panic selling, he added.
Minus signs dominated list under the lead of Bata Pakistan and Siemens Pakistan, off by Rs39.43 and 26.90, while Unilever Pakistan and Sanofi-Aventis managed to close with gains of Rs53.02 and 7.26 respectively.
Turnover figure rose to 46.243m shares from the previous 28m shares but losers maintained a strong lead over the gainers at 158 to 69, with 86 shares holding on to the last levels.
The active list was topped by Fauji Fertiliser Bin Qasim, off Rs1.48 at 55.07 on 5m shares followed by Lotte Pakistan, lower 25 paisa at 9.81 on 3m shares, Fatima Fertiliser, easy by 37 paisa at 22.19 also on 3m shares, Bank Al Falah, easy by 14 paisa at 11.87 also on 3m shares, MCB, sharply lower by Rs4.31 at 148.00 on 3m shares, NIB Bank, easy by one paisa at 1.31 on 2m shares and Fauji Fertiliser, shaprly lower by Rs4.68 at 167.68 on 2m shares.
They were followed by Worldcall Telecoms, lower five paisa at 1 on 2m shares, Nimir Chemicals, easy nine paisa at 2.31 on 1,389m shares and Engro Corporation, off 3.37 at 123.09 on 1.888m shares.
FUTURE CONTRACTS: Fauji Fertiliser Bin Qasim came in for renewed selling and was marked down by Rs1.71 on 1.221m shares followed by Fauji Fertiliser, off Rs3.07 at 169.63 on 0.814m shares and Azgard Nine, easy by four paisa at 3.46 on 0.630m shares.They were followed by Engro Corporation, off Rs3.98 at 122.70 0.555m shares and National Bank, lower by Rs1.07 paisa at 41.44 on 0.376m shares.
DEFAULTER COs: The activity on this counter was relatively slow in the absence of leading investors and fall in prices in the ready section.
Dadabhoy Cement was an exception, which rose by 33 paisa at Rs1.60 on 38,781 shares followed by Genertech Power, easy by five paisa at 0.28 on 26,235 shares and SS Oils, up 35 paisa at 4.85 on 12,000 shares. Others lacked buying interest and were held unchanged.