KARACHI, May 23: The KSE 100-share index on Friday crashed from the recent highs by 615.26 points or 4.52 per cent wiping out Rs187 billion from the market capital on panic-selling triggered by 1.5 per cent hike in the discount rate to 12 per cent, which analysts say will make the borrowing more expensive.

The KSE 30-share index was off by 808.03 points at 15,274.59 or 5.03 per cent.

It was the second consecutive session of mourning at the KSE leaving behind a long list of casualties as erosion of Rs291 billion from the market capital in two days could well mean anything, notably to the small investors.

However, it was not the largest single-session fall as the highest figure so far was 696.83 points recorded on December 31 last year followed by the assassination of Benazir Bhutto on Dec 27.

The pace of panic-selling was further accelerated as leading analysts and investors read too much in Asif Zardari’s latest interview with an Indian channel pointing to the President’s exit as early as possible.

“It may lead to a confrontation between the contenders of power eventually a major political change in the coming weeks,” some analysts observed.

But, the tightening of monetary policy by the State Bank was long over due to chain in the monster of inflation and to reduce the current account deficit to put the economy back on the rails in due course, analysts said.

Although the increase in the discount rate was announced late in the afternoon on Thursday by the central bank governor, some of the leading brokers who had clue about the likely hike unloaded their long positions causing exposure problems in the market, analysts said.In Friday’s trading leading gainers were led by KSB Pumps and Javedan Cement, up by Rs8.39 and Rs4.91, followed by Habib Metropolitan Bank, Chaudhry Textiles, Crescent Textiles and Al-Abbas Sugar, up by Rs2 to Rs3.09.

Rafhan Maize and Siemens Pakistan were top losers, off Rs133.25 and Rs63, respectively. They were followed by Arif Habib Ltd, JS & Co, MCB Bank, Adamjee Insurance, EFU General and Life, Attock Refinery, National Refinery, Attock Petroleum, PSO, Shell Pakistan, Mari Gas, Pakistan Oilfields, Al-Ghazi Tractors, Dawood Hercules, Engro Chemical, BOC Pakistan, Colgate Pakistan, Packages, National Foods, which suffered fall ranging from Rs14.30 to Rs59.09.

Trading volume fell to 155m shares from the previous 192m shares as losers held a strong lead over the gainers at 293 to 34, with 17 shares holding on to the last levels.

TRG Pakistan led the list of actives, off 99 paisa at Rs6.31 on 12m shares followed by Hub-Power, lower Rs1.54 at Rs30.65 also on 12m shares, OGDC, off Rs6.65 at Rs126.35 on 10m shares, PTCL, lower by Rs2.17 at Rs41.27 on 8m shares, Pakistan Petroleum, off Rs13.35 at Rs253.65 on 7m shares and Arif Habib Securities, lower by Rs8.94 at Rs170.05 on 4m shares.

Other actives included NIB Bank, lower by Re1 at Rs13.44 on 6m shares, Fauji Fertiliser Bin Qasim, off Rs1.80 at Rs34.22 on 5m shares and Pak PTA, easy by 9 paisa at Rs4.99 also on 5m shares.

FORWARD COUNTER: OGDC led the list of actives on the cleared list, off Rs6.62 at Rs125.88 on 6m shares followed by Pakistan Petroleum, sharply lower by Rs13.40 at Rs254.60 on 3m shares and Arif Habib Securities, off Rs8.83 at Rs167.87 on 2m shares.

Pakistan Oilfields followed them, lower by Rs10.82 at Rs395.88 on 2m shares and Engro Chemical, off Rs15.22 at Rs289.28 on 2m shares.

DEFAULTER COMPANIES: Norrie Textiles led the list of actives, lower by 16 paisa at Rs2.02 on 3.375m shares followed by Zeal Pak Cement, off 47 paisa at Rs3 on 2.884m shares and Unity Modaraba, easy by 11 paisa at Rs1.08 on 0.543m shares.

Japan Power followed them, lower 45 paisa at Rs6.90 on 0.398m shares and Crescent Modaraba, lower by 49 paisa at Rs2.21 on 0.178m shares.