KARACHI, May 5: The KSE 100-share index on Monday plunged by 284 points or about two per cent at 14,673.13 on near-panic selling triggered by conflicting statements by the major coalition partners on the issue of reinstatement of judges amid fears of breakup of the newly-formed government at the centre.

But Faisal A. Rajabli, a leading stock analyst, observes that it is essentially the weakness of the rupee, which is causing a massive outflow of the foreign funds invested in the share business.

Together with the budget uncertainties, it seems to be the chief reason behind the market’s current stance, he added.

The reports of Rs13 billion fraud at Bank of Punjab and arrest of its top also had its toll owing to sympathetic selling in those shares having link with it in one form or the other. Its share value was off Rs2.90 at Rs55.10 on 16m shares.

The breach of three consecutive barriers in a session, which wiped out Rs86 billion from the market capital, is very significant and, the analysts said, the plunge may continue in the coming sessions also if sanity will not return to the contenders of power.

At one stage the KSE 100-share index was down by a massive 428 points at 14,530.30 points but late short-covering by some of the leading financial institutions on selected counters pushed it well above the session’s lows.

The KSE 30-share index also fell sharply lower by 360.61 points at 17,650.31.

The early steep decline was also attributed to sharp decline in MCB Bank after the reports that Maybank, the largest Malaysian lender, has bought 15 per cent stake in it for no apparent bearish reasons.

Its sister company, Nishat Mills, also suffered sharp losses. “Investors seem to be terribly worried over the post-election events as their perception of a stable government is fading out each session,” said stock analyst Ahsan Mehanti.

“The talk of fall of the government if one major stakeholder decides to leave on judges issue, it will add to political uncertainty”.

The market is yearning for good news from the political front, said Ashraf Zakaria. “If the current tensions will continue the market could hit new lows in the coming sessions,” he added.

“The talk of index level of 16,000 now appears a distant possibility as investors are at lookout to bail themselves out from the current impasse,” Hasnain Asghar Ali, another analyst, said.

“With the corporate result season comes to an end it will be pretty difficult for the market to find new stimulants”.

Leading gainers were led by HinoPak Motors and AKF Capital up by Rs27 and Rs45, followed by Central Insurance, Sapphire Textiles and Sapphire Fibres, Dadex, Sazgar Engineering and Wah Noble Chemicals, up by Rs3 to Rs12.34.

Losses were widespread as most of the leading shares were subjected to lower locks led by Nestle Pakistan and Wyeth Pakistan, off by Rs75 and Rs109.70, respectively. They were followed by JS Global, JS and Co, Adamjee Insurance, EFU General and Life, IGI, Thal, Attock, National, Pakistan Refinery, Attock Petroleum, Shell Pakistan, Mari Gas, Atlas Honda, Indus Motors, Dawood Hercules, Engro Chemical, BOC Pakistan, Colgate Pakistan and Treet Corporation, which were quoted lower by Rs10.60 to Rs31.82.

Trading volume fell to 181m shares from the previous 201m shares as losers held a strong lead over the gainers at 57 to 279, with 21 shares holding on to the last levels.Pak PTA led the list of actives, steady by 24 paisa at Rs5.74 on 17m shares followed by Nishat Mills, sharply lower by Rs6.40 at Rs124.20 on 7m shares and MCB Bank, off Rs7.28 at Rs414.60 also on 7m shares.

Arif Habib Securities, off Rs2.97 on 7m shares, Bank Alfalah, lower by Rs1.43 at Rs54.27 on 6m shares, Pakistan Oilfields, off Rs5.20 at Rs409.00 on 5m shares, and Engro Chemical, sharply lower by Rs12.30 at Rs319.50 on 5m shares.

Other actives were led by TRG Pakistan, off Re1 at Rs7.95 on 7m shares and Lucky Cement, steady by 25 paisa at Rs139.10 on 5m shares.

FORWARD COUNTER: Bank of Punjab also led the list on the cleared list and was marked down by Rs2.90 at Rs55.10 on 5m shares followed by MCB Bank, sharply lower by Rs7.95 at Rs418.05 also on 5m shares and Nishat Mills, off Rs5.77 at Rs125.98 on 5m shares.