KARACHI, Aug 26: The KSE 100-share index on Tuesday plunged by another four per cent on panic-selling triggered after the pull-out of PML-N from the coalition on the issue of judges’ restoration deepening the political polarisation, analysts said.

The coalition government at the centre may not fall after the exit of one of the major partners of the ruling elite but a battle of nerves will follow between the major contenders of the power which will intensify the uncertainty and scare away foreign investors, they fear.

The KSE 100-share index shed another 383.37 points or 3.91 per cent at 9,430.29, eroding Rs.117bn from the market capital at Rs2,944bn, while its junior partner was off by 4.66 per cent or 515.52 points at 10,536.12 points.

The index had fallen by about 40 per cent from the peak level of over 15,000 points since the battle of wits started between the major coalition partners and where the end will come worried investors would not know.

The market capital has also declined to $40 billion from $75 billion a couple of months earlier after progressive withdrawal of foreign portfolio investment.

“But it appears to be a no-win situation for the both,” said a leading analyst Hasnain Asghar Ali, adding that the number game will be the final winner not the deceptive tactics”.

The parting of ways, however, weighed heavily against the terribly fragile market as investors hastened to get out of it even at the lower rates but there were no willing buyers.

“Everyone is awaiting the return of sanity on the political front,” analyst Ahsan Mehanti said. “But it is not around at least for the near-term in the absence of consensus among the ruling elite”.

All the leading shares again subjected to lower locks under the lead of National Bank, which fell below its resistance level of Rs100, MCB Bank, Pakistan Petroleum, Shell Pakistan, Engro Chemical, Arif Habib Securities and several others.

Some of the hereto inactive shares, notably Merit Packaging and Crescent Textiles managed to finish modestly higher by Rs2.71 and Rs2.23 followed by Shifa International, Dawood Hercules and Atlas Engineering, up by Re1 to Rs1.50.

Shell Pakistan and EFU Life were leading among the losers, off by Rs21.95 and Rs18.70. Other prominent losers were led by Adamjee Insurance, Sapphire Fibres, National Refinery, Millat Tractors, Al-Ghazi Tractors, Attok Petroleum, PSO, Pakistan Oilfields, MCB Bank, JS Global and JS & Co, which suffered fall ranging from Rs10.52 to Rs18.41.

Trading volume was maintained at the overnight level of 88m shares but the gainers trailed far the losers at 27 to 239, with 12 shares holding on to the last levels.

OGDC led the list of actives, off by Rs5.42 at Rs103.08 on 7m shares followed by National Bank, sharply lower by Rs5.15 at Rs97.91 on 6m shares, Pakistan Petroleum, off by Rs8.59 at Rs207.40 on 4m shares and Hub-Power, easy by 42 paisa at Rs21.30 on 3m shares.

BankIslami Pak, off Re1 at Rs11.71 on 2m shares, Arif Habib Securities, lower by Rs5.20 at Rs98.80 also on 2m shares and Engro Chemical, off Rs9.69 at Rs184.21 on 2m shares.

Other actives were led by NIB Bank, easy by 56 paisa at Rs8.50 on 6m shares followed by Zeal-Pak Cement, lower by 16 paisa at Rs1.19 on 5m shares and Nimir Chemical, lower by 23 paisa at Rs2.03 on 3m shares.

FORWARD COUNTER: OGDC also led the list of actives on the cleared list, off Rs5.23 at Rs103.22 on 2m shares followed by NIB Bank, easy by 50 paisa at Rs8.53 on 1m shares, its September contract shed 67 paisa at Rs8.68 also on 1m shares.

MCB followed them, sharply lower by Rs13.20 at Rs250.81 on 0.910m shares and Pakistan Petroleum, off by Rs9.25 at Rs206.25 on 0.885m shares.

DEFAULTER COMPANIES: Norrie Textiles came in for renewed selling and was marked down by three paisa at Rs1.53 on 0.640m shares followed by Japan Power, easy by 10 paisa at Rs4.49 and Unity Modaraba, lower by three paisa at 55 paisa on 0.360m shares.

DIVIDEND: Arif Habib Investment Management, cash 25 per cent, bonus shares 50 per cent already paid, Atlas Battery, cash 75 per cent, Otsuka Pakistan, cash 25 per cent, Atlas Honda, 65 per cent, Dawood Lawrencepur, bonus 10 per cent, Mybank, right 25 per cent and Network Microfinance, right shares 100 per cent.