KARACHI: Stocks collapsed further on Friday as bears continued to tighten their grip on the market sending the KSE-100 index down by 439.53 points (1.40 per cent) to close at 31,001.49.

Tumbling oil prices wreak havoc and the index, which managed to stay in the positive territory in the first half of the session, succumbed to selling pressure in the second half as scared investors’ ditched stocks after watching the rout in Asian and European markets.

Dow also opened weak on the Wall Street.

Investors were quick to dump intra-day positions and liquidate some of their current holdings to book profit fearing a further fall as worries mounted over global equity meltdown.

During the week, the index has collapsed 4.7pc, representing a loss of 1,533 points.

A market participant said that the FIA was directed to consult the SECP before taking action against a stockbroker but the news could not be independently verified.

Trading volume fell to 138m shares and value also declined to Rs6.9 billion.

Except the OGDC, which closed below Rs100 at Rs 98.41, most other volume leaders were second-tier stocks.

Foreigners jumped in to sell stocks worth $4.32m. Among local participants, individuals were net sellers of $2.14m worth shares.

Profit-taking was witnessed on all sectors including the investors’ favourite cements. FCL, DGKC and DCL declined by 1.10pc; 0.65pc and 2.28pc, respectively.

Dealers on sales desk at Global Securities said that index heavyweights PPL (-4.37pc); HBL (-1.59pc); MCB (-1.77pc); UBL (-2.17pc) and OGDC (-2.17pc) cumulatively dragged the benchmark index down by 164 points.

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