Following selling pressure, notably in fuel & energy sector, share values underwent massive battering, with the index moving down by 59.29 points on the local equity market on the first day of the week.
The LSE-25 index plunged to 2605.80 points from 2665.09 while there was also a drastic fall in turnover which came down to 69.009 million shares from 96.181 million, registering a decline of 27.172 million shares.
Subdued by selling pressure, mainly from the weak holders, the market moved in a single direction throughout the day.
Stock analysts said that the pressure in fuel & energy sector, particularly in PSO and Sui Northern, ended the 'Eid buying euphoria,' started during the preceding week.
The index showed some recovery at midday, but it had hardly any impact on the overall sentiment, they added. Banking sector also remained under pressure and failed to make any headway, they further stated.
According to some brokers, the negative news regarding debriefing of nuclear scientists caused pressure in the market.
The investors apprehended that the allegations of transfer of nuclear technology could create problems for Pakistan. However, according to others, the impact of such news had already discounted.
There was no negative news on political or economic fronts and the market would recover in a day or two.
Dr Shahid Zia, head of research of First Pakistan Securities Ltd, while deliberating upon the reasons for the day's heavy battering, said that during the past week, the market people remained in a buying mood due to which the market had entered into the overbought region.
At such levels, he added, a technical correction had become inevitable. The only negative news was about the results of Shell Pakistan, which created pressure in fuel and energy sector, he maintained, But even then Pakistan Oil Fields delivered well and topped gainers' list, he pointed out.
Moreover, he pointed out that the weak holders offloaded to avoid the heavy cost of seven-day badla which will take place on Tuesday and that was another major factor for the selling pressure.
Dr Shahid Zia said that the market may undergo pressure on Tuesday, but might recover afterwards.
Companies in the corporate sector are reporting earnings above expectations and giving positive indicators for their future growth. "When we look at the corporate results, the future sentiment of the market seems pretty bullish and there is no threat to genuine investors," he remarked.
However, he suggested that their strategy should be to buy at strength instead of dips.
Overall there were 11 gainers against 32 losers, with 52 remaining unchanged, out of a total of 95 scrips changing hands during the day.
Pakistan Oil Fields was up by Rs 9.90, ICI Pakistan Rs 2.50, Kohinoor Textile Mills Re 1.00, Trust Modarba Re 0.35 and Chakwal Cement Re 0.27. In the minus column, PSO lost Rs 7.25, Sui Northern Rs 2.50, ICP SEMF Rs 2.20, Bank of Punjab Rs 1.95 and OGDC Rs 1.70.
DG Khan Cement, Dewan Salman Fibre emerged as volume leaders with 8.168 million and 6.475 million share turnover, respectively.
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