The news hinting that the National Assembly may re-institute a probe into the March 2005 stocks crisis and the American Central Intelligence Agency (CIA) chief's warning of danger at the Pak-Afghan border has trigged panic selling in share market on Monday, which lost its worth by 1.14 percent.
The LSE-25 Index closed at 4,695.82 points compared with last closing at 4,750.11, registering a net decrease of 54.29 points. Total volume amounted to 19.061 million shares as against 19.379 million shares of the previous closing.
The market players were nervous because of reports saying the National Assembly might reopen inquiry into the 2005 stock market crisis, which deprived investors of their hard earned money, analysts said. Another news that situation in the border region between Pakistan and Afghan presents a 'clear and present' danger to the West also contributed to the negative sentiment, they added.
The impact of such news was seen in the market from beginning of the session, while later the market extended the early losses. Except oil distribution sector, the entire oil and gas sector recorded losses followed by the insurance sector, key banks, and refineries shares, they stated.
All the scrips making substantial gains, especially refineries and the oil and gas exploration sector and key banks in last few sessions, underwent heavy selling pressure, said Mirza Muhammad Irfan of Capital Vision Securities Limited.
He said the news quoting US CIA Director Michael Hayden that "al Qaeda was training operatives who look western and could enter the United States undetected to conduct terrorist attacks" brought a very negative impact on the market, forcing people to sell in panic. The re-opening of the inquiry also sent shock waves in the market, he added.
He said since some big names were allegedly involved in the 2005 market crash, therefore, the market reaction would be negative if the new government reopened the 'Pandora's box.' Irfan said it was because of this news that the oil sector also failed to respond to increase in the crude oil price in the international market.
He said the market was facing strong resistance at 15,200 level and the day it crossed this mark and then stayed firm for a day or two, chances for sustainability of the trend will grow. Out of a total of 102 traded scrips, only 14 improved their worth, 45 landed in minus zone while 43 were intact to their previous levels. Among major gainers, PSO was up Rs 5.30, Pervez Ahmed Securities Rs 3.25, Lucky Cement 95 paisa, Dewan Cement 75 paisa, and Sui Northern 45 paisa.
In negative column, EFU General Insurance shed Rs 38.00, Adamjee Insurance Rs 13.80, MCB Bank Rs 6.55, Arif Habib Securities Rs 5.25, and Habib Bank Rs 4.45. Bank Alfalah and Pervez Ahmed Securities were the volume leaders with 2.613 million and 2.096 million shares respectively.