KARACHI, Dec 15: The KSE 100-share index on Monday plunged by 4.03 per cent or 370 points at 8,817.10 on panic selling by some leading foreign investors after the removal of the floor in an actively traded session but there was still a confusion about the interpretation of the law suit in the court seeking a status quo, some floor brokers said.

“The major issue of CFS MK-11 holdings of Rs11 billion is still unresolved,” analyst Hasnain Asghar Ali said adding: “The future market direction will be guided by Tuesday’s court verdict on it.”

Investors are also worried over the tension in Indo-Pak relations in the backdrop of Pakistan’s airspace violations by the Indian fighter planes, weak economy, higher inflation and falling exports, he said.

The talk of out-of-the-court-settlement on leveraged positions on the pattern of the removal of floor may not be relevant at this stage as the issue involves stakeholders on both sides of the divide, he said adding a loud whispering of a consensus about rolling over of CFS positions to six months could be an acceptable formula for both the parties.

“The Rs11 billion at stake is a big amount,” analyst Ahsan Mahanti observes and it may not be that easy to resolve it outside the court,” adding: “The exponents could not resolve it during the last four months and how they would it in couple of days before the court proceedings.”

The KSE 30-share index also remained under pressure on selling in its leading base shares and fell by about five per cent or 493.53 points at 9,434.80.The market capital also shed Rs6.764 billion at Rs2,702.282 billion.

Bulk of the selling, notably from some of the leading foreign funds was confined to most of the blue chips, including Unilever Pakistan, PSO, Pakistan Petroleum, MCB, National Bank and Habib Bank, but the prices were mostly without finding any willing buyers even at the decline, they said.

The market could suffer fresh pruning in the coming sessions but the talk that the index could fall by another 25 per cent appears to be a bit speculative as some of the bulls are planning a “big kill” at the current lows, they added.

But some others said the market could stabilise during the next couple of sessions as by that time pent-up selling may have run its course paving the way for return of the bulls at the attractively lower levels.

Minus signs dominated the market under the lead of blue chips in the banking and oil sector falling like house of cards without finding willing buyers even at the dips.

National Bank, Faysal Bank, MCB, Adamjee Insurance, Attock, National Refinery, OGDC, Pakistan Oilfields, Pakistan Petroleum, Millat Tractors, Engro Chemicals, ICI Pakistan, Packages and Unilever Pakistan, having foreign stake were among the prominent losers, off by Rs4.62 to 9.68 under the lead of OGDC and Pakistan Petroleum. But the largest fall of Rs11.63 was recorded in MCB.

Only four shares managed to finished

higher under the lead of Ahmed Hassan Textiles, up by Rs2.05 followed by Olympia Spinning, Al-Zamin Leasing and Sardar Chemicals, which showed gains ranging from nine to 65 paisa.

Trading volume soared to 17.863m shares from the previous 56,000 shares as losers held a strong lead over the gainers at 120 to five, with only two shares holding on to the last levels, out of 127 actives.

Zeal Pak Cement led the list of actives, sharply lower by 77 paisa at Rs0.39 on 12.829m shares, bulk of the total turnover, followed by Nimir Chemicals, easy by 98 paisa at Rs1.15 on 1.130m shares, Equity Modaraba, off 82 paisa at Rs0.93 on 0.975m shares, Investec Securities, lower by 92 paisa at Rs0.37 on 0.639m shares, Southern Electric, off 81 paisa at Rs2.79 on 0.428m shares, B.R.R. Modaraba, lower 95 paisa at Rs3.75 on 0.302m shares, and Habib Modaraba, 98 paisa at Rs4.46 on 0.231m shares. Al-Abbas Cement followed them, off one rupee at Rs5.55 on 0.208m shares, Unity Modaraba, easy by 29 paisa at Rs0.24 on 0.143m shares and Fidelity Leasing, lower by 51 paisa at Rs2.79 on 0.113m shares.

FORWARD COUNTER: Prices on this counter fell in unison under the lead of Arif Habib Securities in the absence of support from any quarter followed by Fauji Fertiliser, Habib Bank, National Bank, OGDC, Pace Pakistan, PSO, Pakistan Petroleum and United Bank, which suffered fall ranging from Rs3.22 to 8.60.

DEFAULTER COUNTER: Barring Sardar Chemical, which managed to finish with a modest rise of 65 paisa at Rs3.75 on 1,000 shares, all others, which came in for trading fell under the lead of textile shares, notably Elahi Cotton, Khurshid Spinning and Jubilee Spinning, off one rupee each.

BONUS SHARES: Bank of Khyber bonus shares at the rate of 25 per cent for the year ending Dec 31, 2008.