KARACHI: The stock market remained spellbound on Wednesday and the KSE-100 index finished flat with loss of 33.44 points (0.07 per cent) to close at 48,981.65.

The market opened on a positive note, reaching an intra-day high of 316 points (0.64pc).

While the bourse traded green for most of the day, news broke of the Securities and Exchange Commission of Pakistan (SECP) handing over a broker and investigations of two defaulter brokers to National Accountability Bureau.

Due to nerves, investors rushed to square positions, resulting in a steep intraday fall of 550 points. Sanity returned before close of trading with bargain hunt-ers taking the advantage of price declines and entering into fresh positions thatlif ted the index from its lows.

Analysts counted other reasons for the market sell-off. Zulgarnain Khan, director at Next Capital, attributed the downturn to thepolitical uncertainty over the Panama Papers case hearings, the SECP clamp-down on brokers to enforce prescribed margins in the Margin Finance System so as to lower systemic risks.

`The rollover week and above all the high level of the index spooked investors,` he said.

The overall volume increased to 380 million shares from 343m and the trading value to Rs16.5 billion from Rs13.9bn the previous day.

Analysts at Intermarket Securities stated that amid panic selling only 24 stocks closed on their upper circuits compared to 60 scrips closing on their lower limits.

Millat Tractors fell 4.95pc, Searle Pakistan 2.33pc, International Steels 3.24pc, HUBC 0.59pc and Bank of Punjab 4.81pc taking away 83 points.

Engro gained 1.78pc, MCB Bank 1.40pc and Lucky Cement 1.05pc adding 82 points to the index.