KARACHI, March 3: The share market on Monday fell across a broad front on near-panic selling partly in response to steep fall in world bourses amid renewed fears over the US recession and partly to uncertainty about the formation of a government by the victors.

A nine per cent increase in petroleum prices also worked against the underlying sentiment on the perception that it will add to the production costs of the industrial and other sectors of economy.

After hitting the session’s low earlier in the session at 14,740.96, owing to heavy fresh battering received by MCB Bank on GDR-related selling and having a highest weightage in the index, it dragged down the entire market along with it well below the technical level.

The closing was, however, a bit improved on late short-covering at the lower levels and it managed to finish with a clipped loss of 117.87 points at 14,816.43 points as compared to previous 14,934.30.The 30-share index also shed 293.23 points at 18,074.06.

Dividend announcements plus bonus shares, notably by insurance sector were on the higher side of the analyst predictions but they failed to check the market decline.

Since the opening the market remained terribly volatile throughout the session for a combination of more than one negative reasons, notable among them being the failure of the coalition partners to name the prime minister and chief ministers in the provinces, said a leading stock analyst Ashraf Zakaria.

“The Feb 18 now is far away and the contenders of power should have set their political priorities and house in order,” he said adding “in the prevailing uncertain situation many may not put their money in the share business.”

The fall of the major world bourses on renewed fear about the recession in the US economy did dampen the underlying sentiment early, said Faisal A. Rajabali, another leading analyst, “but as the local market may not have larger relevance to them, it appears to be a psychological depressant rather than a real constraint.”

The market recovery after mid-session round reflects that some of the leading investors may have freed themselves from choked badla regime to resume covering purchases, he added.

“The current levels are attractive enough for any investor,” another analyst Hasnain Asghar Ali thinks adding “those who take financial risks may go for some of the choice scrips”.

Minus signs dominated the list under the lead of HinoPak Motors and AKD Securities, off by Rs29.00 and 43.80, followed by Adamjee Insurance, Lakson Tobacco, Clover Pakistan, National Foods, Shezan International, Pakistan Engineering, BOC Pakistan, Pakistan Resource Co, and MCB Bank, which suffered a fall ranging from Rs8 to 21.75.

EFU General Insurance and JS & Co managed to finish higher by Rs26 and 27.30, respectively. Other gainers were led by Service Industries, East-West Insurance, Pakistan Refinery, Bata Pakistan, JS Global and Wyeth Pakistan, which posted gains ranging from Rs8.45 to 25.

Trading volume fell to 196m shares from the previous 335m shares as losers held a strong lead over the gainers at 225 to 122, with 33 shares holding on to the last levels.

Bank AlFalah led the list of actives, unchanged at Rs61.75 on 11m shares followed by MCB Bank, sharply lower by Rs21.75 at Rs413.25 also on 11m shares, Bank of Punjab, off Rs3.35 at Rs96.90 on 10m shares, D.G. Khan Cement, lower by Rs1.80 at Rs106.00 on 8m shares, Arif Habib Securities, off Rs3.20 at Rs181.20 on 7m shares, OGDC, easy by one rupee at Rs128 on 7m shares and Lucky Cement, Rs1.85 at Rs128.25 on 6m shares.

Other actives were led by Azgard Nine Textiles, up by Rs2.80 at Rs59.60 on 10m shares, Nishat Mills, sharply lower by Rs3.65 at Rs112.50 on 8m shares and Fauji Fertiliser Bin Qasim, lower by 45 paisa at Rs44.95 on 9m shares.

FORWARD COUNTER: MCB Bank came in for active selling on the cleared list also and was marked down by Rs21.65 at Rs411.35 on 10m shares, followed by Bank of Punjab, off Rs4.96 at Rs96.25 on 5m shares and D.G. Khan Cement, lower by Rs1.55 at Rs106.50 on 4m shares.