KARACHI - The stock market suffered heavy losses on Tuesday as well and the KSE 100-share index fell to a two-and-a-half month low because of investor uncertainty over the next fiscal years budget and political tensions. The Karachi Stock Exchanges (KSE) benchmark 100-share index ended 2.67 percent, or 258.97 points, lower at 9,428.44 points on turnover of 135.44 million shares. The KSE-index ended at 9,419.43 points on March 3. The KSE 30-index closed at 9402.04 with a loss of 297.22 points. The KMI 30-index closed at 14333.91 with a loss of 336.84 points. All shares index closed at 6621.97 with a loss of 186.36 points. Trading activity was better as compared to the last trading session as the ready market volume stood at 135.439m as compared to last trading sessions 73.667m. Future market volume, however, stood at 5.835m shares as compared to 5.365m shares of last trading session. Market capitalization stood over Rs2.657tr. Total trades increases to 76,391 as compared to last trading sessions 52,500. 72 companies advanced, 352 declined and 11 remained unchanged. Highest volumes were witnessed in LOTPTA at 13.699 million, closed at Rs9.18 with a loss of Re0.55, followed by TRG at 6.144 million, closed at Rs4.70 with a loss of Re0.28, JSCL at 5.947 million, closed at Rs13.49 with a loss of Re1.00. Uncertainty over federal budget announcements, fall in Asian capital markets, rumours on default of stock brokers played a catalyst role in negative activity at KSE despite support by state-run mutual funds throughout the trading session, said analyst Ahsan Mahenti. Early support failed to keep away the sellers for long, as the bearish spell continued, despite aggravation in nervousness, due to sliding regional and international markets, the local bourse sustained the positive numbers in early trading hours, through various sentiment building exercises, mainly by appreciating status-quo in the monetary stance and imposition of new taxes on economy, through low quantum strength in the index heavy weight. The efforts however failed to keep away the sellers, a mix of corporate and retail investors, mainly in the expensive stocks. Thus, forcing the benchmark to wipe-off early gains and land in deep red zone. Although cautious accumulation mainly by corporate participants did offer mild resistance to the incoming float, calculative and selective activity however failed to have a loud impact on the sentiment, which continued to stay negative. The likely chain reaction of massive onslaught, i.e. margin calls led sell-off by financial institutions including clearing house (market rumour) aggravated the losses on the benchmark and the index registered an adjustment of 3.47%, at one point, before the funds from government treasuries became active, for their identified support. Mild corporate support in the main board and targeted stocks on substantial decline did come in, thus, triggering mild short covering that duly arrested the unprecedented decline for the day, fresh selling spree by the resident participants however disallowed recovery. Since besides various issues those keep uncertainty alive, CGT implementation due to its infrastructural issues without availability of volume generating mechanism (BADLA) will lead to further reduction in turnover and increase in shallowness thus, keeping the chance of low volume price erosion high. Cautious therefore stays the call, with sell in expensive stocks, while for accumulation, dividend paying stocks yielding in double digit is recommended upon adjustment, occasional participants are advised to wait for post budget scenario for making investments.