KARACHI: The Karachi share market on Thursday witnessed panic selling due to prevailing political situation in the country, Pak-US relations and a declining trend in other Asian markets.

The benchmark KSE-100 index declined by 161.47 points and closed at the level of 11,139.52 points. The market opened in deep red and the index hit 11,058.07 points intra-day low, down 242.92 points. However late buying in some selective stocks on dips mainly by state run institutions supported the index to minimise its intra-day losses.

Trading volumes at ready counter increased to 52.038 million shares as compared to previous day's 34.960 million shares.

Total market capitalisation declined by Rs 41 billion to stand at Rs 2.889 trillion. Of the total 316 active stocks, 188 closed in negative and only 39 in positive while the value of 89 scrips remained unchanged.

Fatima Fertilizer was the volume leader with 5.991 million shares. However, lost Re 0.60 to close at Rs 21.50. In the other fertilizer sector stocks, Fauji Fertilizer Bin Qasim and Engro Corp declined by Rs 2.13 and Rs 4.95 to close at Rs 46.18 and Rs 99.08 with 3.423 million shares and 2.570 million shares respectively.

Lotte Pakistan decreased by Re 0.26 to close at Rs 8.77 with 3.283 million shares. Jahangir Siddiqui Co lost Re 0.25 to close at Rs 4.72 with 2.365 million shares. PTCL closed at Rs 9.99, down Re 0.17 with 2.331 million shares. DG Khan Cement declined by Re 0.43 to close at Rs 19.55 with 2.197 million shares.

NBP lost Re 0.61 to close at Rs 39.88 with 1.797 million shares. Arif Habib Corp decreased by Re 0.71 to close at Rs 26.59 with 1.784 million shares.

Colgate Palmolive and Dadex Eternit were the highest gainers increasing by Rs 4.24 and Rs 1.77 to close at Rs 639.11 and Rs 37.26 respectively while Unilever Pak and Nestle Pakistan were the worst losers declining by Rs 76.87 and Rs 23.40 to close at Rs 5329.80 and Rs 2290.60 respectively.

Ahsan Mehanti at Arif Habib Investments said that the Pakistan stocks closed sharply lower after Asian stocks and commodities plunged on rising concerns for Europe debt crises. US clarifications on conditional aid to Pakistan also affected the sentiment.

He said that the foreign outflow from local bourse, uncertain Pak-US relations and prevailing political situation in the country played a catalyst role in negative sentiment at KSE. Index managed to close above session lows on state run institutional support in oversold blue chip stocks, he added.