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RECORDER REPORT

KARACHI: Prices plunged on Tuesday at the stock market where not a single entity showed resistance in the absence of support from the market players and financial institutions. The selling pressure reached alarming levels which increased the trading volume as compared with Monday's.

The KSE-100 index declined by 41.43 points or 2.17 percent to 1956.27 from 1997.70 of Monday. The volume amounted to 214.946 million shares as against 179.047 million shares of Monday.

The main factor behind the slide was the speculation regarding the judgement in the case against Nawaz Sharif due to be announced on April 6. The former prime minister, his brother Shahbaz and five aides are accused of attempted murder, kidnapping and hijacking. They are charged with trying to prevent a PIA plane, carrying Gen. Pervez Musharraf from landing in Karachi on Oct. 12. Analysts said that death sentence might lead to political instability and scare away foreign as well as local investors for a while.

Mohammad Zubair Ellahi of KAB Securities said that the slow across the board trimming with no support throughout the way in an overbought market suggested the current trend might force a further slide. However, he said that the heavy badla volumes might put a cap on intra day rises, as the broader term outlook was still positive despite immediate pressure.

Faisal Abbas of AHR Securities said that overall trading sentiment remained bearish where prices of almost all the active as well as blue chips nose dived and the index went down.

The recent statement given by the Chief Executive was a cause of concern. The market punters and the investors were not establishing fresh positions. They preferred to remain at the sidelines and maintained a cautious approach on account of upcoming decision in the plane case.

He pointed out that the traders feared that market might move sharply after the decision and till that time one should be very cautious. On the other hand, a rumour regarding reduction in the import duty on fiber also paved the way for an overall bearish momentum.

Salman Ahmed of Finex Securities said that the market during the session was under the control of bears. The factors that hindered the growth were the anxiety about the verdict in the Nawaz Sharif case and the statement at General Pervez Musharraf that relationship between Islamabad and Washington were deteriorating.

He added that the market might lose some more weight by April 6. Investors were hesitant to commit long-term investment. The genuine investors adopted a cautious approach while speculators were doing transactions on day to day basis.

PTCL on a trading of 71.091 million shares moved to Rs 32.15 from Rs 32.80, ICI on a trading of 46.347 million shares closed at Rs 17.65, i.e. lower by 60 paisa, PSO on a volume of 23.634 million shares recorded a decline of Rs 3.00 to Rs 240.40, Hub Power slipped by 50 paisa to Rs 27.55 as nearly 18.989 million shares changed hands and FFC Jordan on a turnover of 10.574 million shares recorded a rise of 60 paisa to Rs 14.45.