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Index drops 3.6pc on president's impeachment news

KARACHI - The KSE 100-share index yesterday again fell below the base level of 10,000 points, off 363.65 points or 3.6 per cent at 9,678.82 on renewed selling triggered by reports of coalition government's decision to impeach the president on various charges of misuse of power and violation of the constitution.

The other destabilisation factor was Taleban's threat to the MQM to stop their activities in the city and wind up its organisational setups, intensifying the political uncertainty amid fears of bloodshed, analysts said.

"The bourse seems to have contributed its share in the form of four per cent decline in the index and erosion of Rs110.00 billion in the market capital before the city is Talbanised beyond the current warning," said a broker jockingly adding "but how would the MQM react as the warning could well mean to a threat to its power base."

Most of leading shares in the oil and banking sectors, which still ensure capital gains being overvalued were the centre of activity as investors tried to sell their stakes in them to get out of the market.

What seems to have triggered sellstops from all and sundry in the absence of an active support even from the funds,which propelled the market a day earlier was the plan to impeach the president still armed with the power of 58B, under which he could sack the assemblies.

Already, there is a loud whispering in the media that he intends to use this power well before his impeachment,some analysts said adding "the pandora's box has been opened, which lead the market to any lows in the coming weeks."

"The market is now heading for a fresh massive and it appears pretty difficult to salvage it from a continued to crash as no one will like to invest in shares in the developing situation," they added.

Minus signs held a strong lead over the gainers under the lead of Nestle Pakistan and PSO, which fell by Rs70.00 and 17.40 but on the other hand inactive shares rose by Rs78.00 and 11.45 for Wyeth Pakistan and Al Ghazi Tractors.

Trading volume fell to 78 million shares from the previous 144 million shares in the absence of buyers as losers held a strong lead over the gainers at 215 to 39, with 18 shares holding on to the last levels.

NIB Bank again led the list of actives, lower by 52 paisa at Rs8.88 on 7 million shares, Pakistan Petroleum, off Rs2.03 at Rs202.20 on 6 million shares, National Bank, lower by 5.49 at Rs104.41 on 5 million shares, OGDC, easy by Rs4.20 at Rs105.25 on 4 million shares, Arif Habib Securities, off Rs6.15 at Rs116.85 on 3 million shares, Lucky Cement, lower by 1.30 at Rs72.50 on 3 million shares and PTCL, off Rs1.35 at Rs32.45 on 2 million shares.