LAHORE - As soon as the 'floor' mechanism was removed after the order of SECP, Karachi Stock Exchange (KSE) witnessed some panic trading activities after three and half months on Monday shedding further 370 points. On the first day of the business week, bourse was opened with a negative note, which remained continue all along the day, as the market remained in the grip of disturbing news with a wave of uncertainty. The panic due to these upsetting and distressing news triggered the brokers and trades to sell their shares unabatedly and on the throw-away prices but the venture of selling spree with panic pushed the bourse nosedive as there was hardly any buyers. The scare and unnerve phenomenon pulled down the market from 9000 psychological barrier and resultantly KSE-100 index at close of business shed 370 points mostly in second tier scrips and wrapped up at 8,817.10 points. A senior analysts said when bourse was started its new journey on Monday, investors were very nervous and upset as they have in their minds all the events that had been occurred during the last three and a half months when the price floor rule was imposed. Among them are the global financial crisis, Pakistan rating cuts, worsening border tensions and Pakistan's removal by MSCI, which were yet to be incorporated in the share prices at local bourses. He was of the view that unlike Pakistan where there was price floor, global stock markets have also crashed due to fear of deepening global financial crisis. Ever since the imposition of price floor rule at Pakistan equity market, MSCI Emerging Market Index is down 42 per cent while MSCI World has fallen 34 per cent. Most of the Asian emerging stocks have fallen in the range of 17-50 per cent during three and a half month months. Pakistan was down only 4.03 per cent as a result of local currency weakening. This means that market capitalisation was eroded on Monday by Rs 106.473 billion to Rs 2.702 trillion. While, Monday turnover witnessed noteworthy upward trend 17,863,180 shares as compared to Friday business but mere trade of shares could not rescue the market to plunge further. Total 105 scrips traded in the bourse in which only eight companies recorded gains while ninety-seven sustained losses whereas no scrip remained unchanged. The highest trading on Monday was seen in the scrip of Zeal Pak, which shed its value with volume of 12,829,000 shares. Among the traded 105 companies shares 8 ended positive, while 97 in negative. Zeal Pak cement was the leader in volumewise which shed its value of Re 0.76 closed at Re 0.40 followed by Nimir Ind Chemical which witnessed negative column and shed Re 1.00 closed at Rs 1.13 with volume of 1,129,500 shares. Equity Mod, Investec Sec and Southern Electric also shed their values of Re 0.85,, Re 0.93 and Re 0.85 with volumes of 975,000, 639,000 and 428,000 shares respectively. While BRR Guardian, Habib Mod and Al-Abbas Cement also landed in negative column shedding value to Re 0.95, Re 0.25 and Rs 1.00 closed at Rs 3.75, Rs 5.19 and Rs 5.55 with volumes of 302,000, 230,500 and 208,000 shares respectively. While UDL Mod and Olympia Sp gained their values of Re 0.23 and Rs 1.00 closed at Rs 3.30 and Rs 11.25 with volumes of 22,000 and 11,000 respectively. Rest of the scrips remained in negative column and shed their respective values in the bourse. Meanwhile, the KSE-30 index also dipped down and shed 493.53 points closed at 9434.80 points while KMI-30 index also tumbled detaching 540.40 points closed at 10683.68points. Meanwhile, Lahore High Court (LHC), declaring the Securities and Exchange Commission of Pakistan (SECP) decision defunct, ordered retaining the Lahore Stock Exchange (LSE) index 'floor'. However, in violation of LHC verdict, LSE opened up with bang but like KSE, shares prices in LSE also fall like autumn leaves. While the LHC decision for retaining the index floor, the authorities in LSE decided to keep the LSE trading activity when they knew that the SECP officials have been summoned at 10.30 AM Monday morning. LSE management preferred to continue the trading activities despite the fact they had received the copies of the LHC orders while SECP has apprised them the LHC verdict in this regard. While, Lahore Stock market, shedding its further value to 206.63 points and nose-dived while LSE-25 index closed at 2618.73 points. ZELP scrip remained leader volumewise on Monday business while no scrip recorded gain, five losses and eighty-five remained unchanged out of a total of 189 companies. The turnover of LSE-25 on Monday witnessed significant an upward trend and 761,500 shares were traded. ZELP share shed its value of Re 0.72 closed at Re 0.44 with volume of 751,000 shares followed by SEPCO shedding to Re 0.98 closed at Rs 2.62 with volume of 8,000 shares while PPTA and GENP also landed in negative column shedding value of Rs 1.00 and Re 0.68 closed at Rs 2.18 and Re 0.80 respectively with volumes 1000 shares each. DSFL also lost its value of Rs 1.00 closed at Rs 1.94 with volume of 500 shares traded. The eroding phenomenon was also prevailed in the Islamabad Stock Exchange (ISE) following the removal of index 'floor' and pushed the market further 5 per cent down. Zeal Pak Cement, which remained most traded, its 5,00,00 shares exchanged hands. Meanwhile, on the other hand, Islamabad Chamber of Commerce and Industry welcomed the directive of Security and Exchange Commission of Pakistan (SECP) for reopening of three stock exchanges of the country. In a statement, ICCI President Mian Shaukat Masud termed the step of removing the floor as for normal trading. He was of the view that it would be a positive step for investors as the decision would rebuild confidence of local as well as foreign investors. He claimed that investors were eagerly waiting for the removal of the floor and now they would take a sigh of relief on the reopening of equity markets for normal trading. He said Pakistan needs vibrant and flourishing stock market as it is seen as a means for increased domestic resources mobilistion, enhancing the supply of long-term financing and encouraging the efficient use of existing assets. He said the proper growth of stock markets would lead to a lower cost of equity capital and thereby stimulate investment and growth. He said our stock markets have grown tremendously in recent times, which show their resilience and scope of further growth. He said by creating more conducive business environment, Pakistan has the potential to become a hub of commercial and economic activities in the region and thus attract more portfolio investment in the country. He maintained that the concerned authorities should cope with economic challenges like rising inflation, hike in trade and fiscal deficits, depreciating exchange rate and depleting foreign exchange reserves with bravery and courage.