Cautious investors resort to profit-taking.

KARACHI -- After an unprecedented run up, the bulls were stopped in their tracks on Wednesday as investors decided to book profit in exercise of caution.

Investors were nervous over the political developments a day earlier where the death sentence handed to former President Musharraf was met with some sharp rebuke from important quarters. The KSE-100 index closed down by 164.95 points (0.39 per cent) at 41,603.71.

The market opened weak and remained in bearish frame of mind with the index sliding down by 379 points in intraday trade. Mutual funds were the major sellers of shares valued at $4.08 million as they sought exit at the first sign of trouble while individuals and companies were net buyers. Foreigners also picked up blue chips worth $1.64m.

Profit-taking was witnessed mainly in the exploration and production sectors where Oil and Gas Development Company declined 3.2pc and Pakistan Petroleum down 2.6pc, washing away 120 points.

Moreover, the decision of the Oil and Gas Regulatory Authority to increase gas prices for domestic consumers by up to 214pc was another reason for the market decline as investors...