KARACHI, May 28: The KSE 100-share index on Wednesday again plunged by 567.27 points or 4.42 per cent at 12,254.98, eroding Rs170 billion from the market capital on panic selling triggered by reports of some new taxes on the share business in the budget and withdrawal of Rs150 billion subsidy on oil.

“Even in normal times and sanity on the political front, budget uncertainties keep the market shaky as investors don’t take long positions for obvious reasons,” an analyst said, adding: “But together with the current political uncertainty, the talk of wealth tax, sales tax and the capital gains tax forced big stakeholders to shed extra weight well in time”.

The perception that the burden of higher international prices would be passed on to the consumers adding to the overheads also worked against the underlying sentiment.

An all-time single session highest fresh fall was also noted in the 30-share index, off 749.35 points or 4.95 per cent at 14,395.11. OGDC, MCB Bank, National Bank, Arif Habib Securities and some others were leading among the massively battered leading shares.

After opening higher, the market this time was dragged down by the oil sector, considered to be a relative safe haven, where most of the leading shares faced lower locks followed by the banks and some other blue chips

A fresh massive erosion of Rs171 billion in the market capital added to the last three sessions’ previous total of Rs500 billion. In dollar terms, it had lost $20 billion since the market decline started some two weeks earlier.

Already weighed down by a series of negative developments on the political front leading to a terrible lull before an impending storm, conflicting statements on some sensitive financial issues by the new economic managers continued adding to prevailing mess on the capital markets, said a leading analyst Faisal A. Rajabali.

Some say the capital gain tax will be extended by another two years to boost stock trading, while others claim more taxes will be levied on the share traders to line up more fund to put the ailing economy back on the rails, he said adding: “Why investors put money in stocks when they are unsure about its safety.”

“No one could dispute the fact that the economy is in a terrible bad shape but why all the arrows are directed towards the capital market, where small investors had a big stake,” another analyst Ahsan Mehanti questions.

Minus signs were strewn all over the list, major losers being AKD Capital and Nestle Pakistan, off by Rs53.34 and Rs50, followed by Habib Bank, MCB Bank, Adamjee Insurance, JS & CO, EFU General and Life, Fazal Textiles, Attock Refinery, National Refinery, Attock Petroleum, PSO, Shell Pakistan, Mari Gas, Pakistan Oilfields, Pakistan Petroleum, Tri-Pack Films, Pakistan Engineering, Indus Motors, Ferozsons Lab, Engro Chemical, Dawood Hercules, and Packages, which were marked down by Rs10.10 to Rs27.19.

HinoPak Motors and Al-Ghazi Tractors managed to finish higher by Rs8 and Rs7.51 on stray support. Millat Tractors, Siemens Pakistan, and Dadex followed them, up Rs2.95 to Rs6.

Trading volume again shrank to 188m shares in the absence of leading buyers as compared to previous 264m shares as losers topped gainers by a big margin of 292 to 56, with 11 shares holding on to the last levels.

NIB led the list of actives, lower by one rupee at Rs12 on 10m shares followed by Bank Al-Habib, easy by Rs2.37 at Rs45.13 on 9m shares, OGDC, off Rs6.48 at Rs123.27 on 7m shares, National Bank, sharply lower by Rs8.48 at Rs161.27 also on 7m shares, Fauji Fertiliser Bin Qasim, easy by Rs1.70 at Rs32.43 on 6m shares and Arif Habib Securities, off Rs8.22 at Rs156.28 also on 6m shares.

Other actives, included TRG Pakistan, lower by 80 paisa at Rs6.65 on 8m shares, Pakistan Reinsurance Co, off Rs4.52 at Rs85.92 on 5m shares, Bosicor Pakistan, lower by 93 paisa at Rs13.05 also on 5m shares and Fauji Cement, easy by 99 paisa at Rs10.20 on 4m shares.

FORWARD COUNTER: Both settlements of MCB Bank, fell by Rs16.06 and 15.92 at Rs305.33 and Rs302.48, respectively, on about 3m shares each, while National Bank, eroded by Rs8.50 at Rs161.50 for its May settlement, while its June contract was off by Rs8.70 at Rs165.30 on 3m and 2m shares. OGDC shed Rs6.49 at Rs123.31 on 2m shares.

DEFAULTER COMPANIES: Easier conditions also prevailed on this counter as prices fell when changed under the lead of Norrie Textile, off 27 paisa at Rs2.02 on 2.696m shares followed by Japan Power, lower by 40 paisa at Rs6.10 on 2.679m shares and Zeal Pak Cement, easy by 39 paisa at Rs2.71 on 2.258m shares.

Unity Modaraba was marked up by nine paisa at Rs1.20 on 0.549m shares, while Hydery Construction fell by five paisa at Rs2.10 on 0.108m shares.