Share values nose-dived at local stock market on account of panic selling, which was mainly caused by reports regarding revision of exposure rules by the Securities and Exchange Commission of Pakistan (SECP) as well as disturbing law and order situation at Sui area. The LSE-25 index went down by 107.14 points to finish at 3127.34 from Wednesday's 3234.48 points, while the volume also dropped drastically to 95.682 million shares from 151.720 million shares of the previous session, showing a fall of 56.038 million shares.
The market continued with its previous day's bearish spell, although it took a positive start with an encouraging buying interest from the public.
Soon after opening of the market, the index went up by 48 points, but up to 10 am, it had lost 36 points and subsequently the market entered the red zone following immense selling pressure from every counters, that caused panic in the market, stock analysts said.
The share values fell across the board, and the fall was so sharp that circuit-breakers were used in almost every stock to avert further downslide.
They said during last two sessions, some big brokerage houses sold OGDC and other shares to their foreign buyers on high rate that created hype in the market for influx of foreign investment. They claimed that around deals worth $30 million were made with these foreign buyers at very high rates.
On Thursday, the same brokers manipulated the market to pick stocks at low levels. So it was a technical game that was played by big players to buy at low levels, the analysts said.
PSO was the day's prime loser followed by Fauji Fertiliser, Pakistan Industrial Credit and PPL, while KESC was the sole gainer of the day.
Ahmed Nabeel, head of operations, Invest and Finance Securities Ltd, said it was the week of market records, as on the one hand it reached new peaks, while touched lowest ebb on the other, adding during this week, it was highest index closing, high index touch, highest ever turnover, capitalisation, badla capitalisation, highest ever single-session gain, and record single session low.
He said major factors that contributed to day's heavy falls was the news that the SECP was going to make exposure rules further strict, adding the other factor was the deteriorating law and order situation in Sui (Balochistan).
Press reports that over 1,000 troops had been dispatched to the Sui Gas Field after its closure because of a series of clashes with tribesmen, that reportedly claimed eight people dead, caused panic in the market and everyone rushed to sell his/her stocks.
Nabeel, however, pointed out that the day's fall was not outcome of a technical correction, but on account of manoeuvring by some big players to buy at low levels.
He said the game is still in their hands; therefore, the market could recover Friday, adding: "Personally, I think that after Thursday's falls, the market should recover on Friday."
Another encouraging news for the market is that four foreign companies have shown willingness in privatisation of PTCL, he said, adding these companies are Singtel, Etisalat, Kuwait Telecom, South African MTN and Saudi Oger.
Out of a total of 84 traded scrips, only one improved its worth, 38 stayed in negative column, while 35 were intact to its previous levels.
Among major gainers, KESC was the only scrips, which improved while on loser end; PSO shed Rs 13.65, Fauji Fertiliser Rs 6.90, Pakistan Industrial Credit Rs 6.30, PPL Rs 6.40, and Nishat Mills Rs 5.30.
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