The LSE-25 index lost 48.36 points to close at 2682.59 as against 2730.95 of the previous session. The volume amounted to 43.499 million shares as compared to 50.060 million shares, registering a decline of 6.560 million shares.
Hit by the negative impact of assassination attempt on Shaukat Aziz, the market remained under pressure throughout the day with all key chips undergoing heavy losses.
Stock analysts said the market was closed on Saturday, therefore, the impact of the incident was expected to prevail on Monday. In last minutes, some recovery was seen, but the overall sentiment remained depressed, they pointed out.
The said the incident has badly shattered investors' confidence raising their concerns over the law & order situation in the country.
Dr Shahid Zia, head of research, Switch Securities Ltd, said the overall sentiment of the market was already weak while the incident of suicidal attack on life of Shaukat Aziz added fuel to fire, adding the market suffered losses across the board, but the index-based shares such as PTCL, PSO, OGDC and Hub Power etc were the worst-hit scrips.
The banking sector, which has remained in the spotlight for the past many sessions because of its good earning reports also depicted weakness, he said, adding: "However despite Shaukat Aziz episode, the cement sector showed strength with DG Khan Cement and Lucky Cement remaining in focus."
"Tomorrow could also be a bad day for the market in view of three-day's badla trading, Dr Shahid Zia said. But, he added, the market could recover back afterwards on hopes of corporate results.
He said the month of August is very crucial for the market due to corporate announcements and election of Shaukat Aziz to be held on August 18, adding: "Hence we expect a volatile activity in the market during the month."
Speculators and weak-holders may suffer more in a volatile market, he said, adding, investors are advised to focus only on fundamentally strong shares, especially the cement sector whose earning reports are very encouraging. Moreover, any news with regard to construction of dams could lift the cement sector further up, he observed.
Overall, 86 scrips exchanged hands during the session, of which eight improved their worth, 33 landed in negative column, while 45 maintained their previous price levels.
Among prime gainers, DG Khan Cement was up 60 paisa, Lucky Cement 45 paisa, Dewan Farooq Motors 40 paisa, Picic Commercial Bank 35 paisa, and KESC 20 paisa.
In the minus column, Fauji Fertiliser shed Rs 2.15, OGDC Rs 2.05, PPL Rs 2.00, Sui Northern Rs 1.30, and Adamjee Insurance Rs 1.25.
The Fauji Fertiliser and the DG Khan Cement were the volume leaders with 10.305 million and 6.040 million shares turnover, respectively.