Ongoing political controversies on security issues in Sindh kept Karachi stock market in the red zone on Tuesday as the benchmark KSE 100-share index lost another 290.78 points and settled at 32,467.04 points.

Selling in banks and cements stocks resulted in further decline in KSE-index. Local investors remained cautious amid growing tension between Sindh and federal governments on the issue of extending period of Rangers in Karachi, stated dealers at Topline brokerage.

UBL Bank and MCB Bank fell by down 2.77% and 2.33% respectively. Sui South and Sui North remained under pressure as no announcement has yet been made about their financial results. Total volume increased by 0.7% to 145m shares while traded value increased by 26% to Rs9.2bn.

Recovery in WTI crude prices near to $36/barrel from 11-year lows supported oil stocks. Fears lingered over imminent rise in US interest rates this week which are likely to trigger capital outflows in emerging markets, observed analyst Ahsan Mehanti.

Political resistance over privatisation of SOEs, rising public debt and delay in textile bailout package amid falling exports played a catalyst role in the bearish activity, market analysts added.