KARACHI: After reaching an all-time high near 119,000-barrier, the stock market opened the week on a highly volatile note as jittery investors went on a selling frenzy followingtheInternational Monetary Fund`s disapproval of industrial power tariff rationalisation plan, causing a meltdown across the board dragging the KSE 100 index by a staggeringover2,000 pointsin a single session.

Ali Najib, Head of Sales at Insight Securities, said the celebration in anticipation of a reduction in power tariff announced by the prime minister last week converted into sorrow as the IMF categorically rejected it. In addition, the FederalBoard of Revenue (FBR) plea to slash property tax met the same fate and couldn`t get a go-ahead.

He added that the startof roll-over week also put further fuel into the fire of bearishness and compelled the market to call the day at 116,439.62, a plunge of 2,002.56 or 1.69 per cent day-on-day.The last week of Ramazan commenced on a subdued note amidst low volume as investors opted to stay sideline. However, selling headwinds at the day`s high of 118,798 (356points) put extreme pressure on the positive sentiment. As a result, the KSE 100 index couldn`t withstand it and was breached through two psychological barriers 118,000and 117,000.

Topline Securities Ltd said the market faced downward pressure due to IMF concerns over the lack of adjustments to electricity tariffs and noreduction in property taxes. Additionally, the proposed increase in royalty for cement manufacturers in Khyber Pakhtunkhwa contributed to the negative sentiment.

The decline was primarily driven by Oil and Gas Development Company, Engro Corporation, Fauji Fertiliser Company, Pakistan Petroleum, and Mari Energies, which exerted downward pressure, pulling the index by 811 points.

Ahsan Mehanti of Arif Habib Corporation said the market tumbled amid institutional profit-taking across the board amid reports of IMF disapproval of slashing property sector transaction rates and lowering of March tax targets amid revenue collection shortfall.Market participation remained lower as the trading volume fell15.48pc to 311.97 million shares while the traded value decreased 9.96pc to Rs23.27bn day-on-day.