THE Karachi Stock Exchange (KSE) 100-share index last weak breached through the jealously guarded 14,000 point index level at 13,915.04 on active selling in most of the base shares in the absence of matching covering purchases both from financial institutions and the leading investors.

Bulk of the profit-selling was confined to the leading oil, banking and some other blue chips counters amid fears of law and order situation and election uncertainties.

The share market last week performed in a highly volatile manner as investors played on both sides of the fence indulging in alternate bouts of buying and selling with negative news following in quick succession.

After giving either-way movements, the KSE 100-share index finally finished with a fresh fall of 344.56 points at 13,915.04 as compared to 14,259.60 a week earlier as leading base shares in banking, oil and insurance sectors came in for renewed selling.

Analyst predictions of the extension of the previous week's rally were nowhere in sight as leading market players were a bit hesitant in extending follow-up support amid fears of law and order situation.

The bomb blast in Lahore on Thursday, which killed over 24 people and injured over 70, did take its toll, although selling did not assume a proportion of the panic in the absence of leading speculative traders.

“In the prevailing situation both on the law and order and political fronts, it is difficult to predict about the future direction of the market”, stock analyst Faisal A. Rajabali said. “Investors are in search of safe havens but there is none despite positive fundamentals,” he added.

Some others said the market had the will and potential to rise from each dip, but what was needed was peace in the country and return of foreign investors who were now active sellers than buyers at attractive lower levels.

The last weekend run-up on the share market was halted followed by profit-selling triggered by central bank’s quarterly report highlighting the risks to the economy during the current fiscal.

The major jolts the economy may receive, analysts said, were the forecast of economic growth at 6.6 per cent—much lower than targeted 7.2 per cent.

Other negative factors included energy crisis followed by load-shedding, which is taking its toll in the form of lower industrial productivity, and the US threat to launch direct operations in the troubled tribal areas.

Although selling was widespread and covered the entire list, the KSE 100-share index did not fall below its higher barrier of 14,000 and ended on balance steady.

Among the base shares, which contributed to the decline MCB, OGDC, National Bank, Arif Habib Securities, and some others were leading.

Despite the fact that external news are not at all encouraging for the investors, both the local investors and financial institutions are eyeing the positive election results and until then may play on both sides of the market.

“The market could not thrive on positive news from the corporate sector including higher earnings”, leading analyst Ahsan Mehanti said. “There is need for peace in the country, and national interest among the contenders of power,” he added.

“The presence of active support at lower levels on some other counters reflects that investors are not worried over the developing scenario on the political front and appear to be in a mood to play according to market fundamentals”, another analyst Hasnain Asghar Ali was of the view.

Forward counter: Speculative issues on the cleared list also followed the lead of their counterparts in the ready section and generally fell where changed under the lead of MCB and some other blue chips.

They were followed by Pakistan Oilfields, Pakistan Petroleum, National Bank, D.G. Khan Cement, Arif Habib Bank OGDC and some other but PSO and some others managed to finish modestly higher.—Muhammad Aslam