Kse-100 index extended its losses on for the second consecutive day as negative news-flow continued to haunt market sentiments. On Tuesday, the index continues to witness panic selling, and lost 203 points by the session closing to clock at 40,006.67 index level. On Tuesday, the market witnessed another day of uncertainty and a volatile session, as index continued its downward trend, reflecting previous session’s trajectory. During the session the market began the session with another tailspin during the earlier hours, however the index recovered some of the earlier losses, later in the day. The market sentiments continue to take a hit, as investors continued to speculate over upcoming Financial Action Task Force (FATF) review. The panic has gripped equity investors, after on Monday, Asia-Pacific Group (APG) on Money Laundering revealed that it has retained Pakistan on its “Enhanced Follow-Up” list for a meagre progress on technical recommendations of the Financial Action Task Force (FATF) to fight money laundering and terror financing. “Pakistan will remain in enhanced (expedited) follow up, and will continue to report back to the APG on progress to strengthen its implementation of AML/CFT measures,” concluded the APG in its 12-page report. The APG decision dented Investors’ hopes of a probable exclusion of Pakistan from FATF grey list, and led investors to reduce their positions in the market.The sentiments also continue to dip amid rising political instability, which continues to haunt equity investors ever since PML-N president and Leader of the Opposition in the National Assembly Shehbaz Sharif was arrested by the National Accountability Bureau (NAB), followed by oppositions’ call for agitation. However, on Tuesday, adding insult to the injury, market digested developing political situation in the country after Pakistan Democratic Movement (PDM) decided to hold its first anti-government rally on 16th Oct, ratcheting up the tensions. During the day the index remained volatile, but remained in the red almost the entire session, recording its intraday low at 39,645.73 after losing 564.09 points.The index volumes decreased from 217.24 million shares recorded in the previous session to 195.24 million shares , while the overall market volumes also declined from 377.65 million shares from the previous session to 290.14 million shares. The volume chart was led Hascol Petroleum Limited followed by TRG Pakistan Limited and Unity Foods Limited. The scrips, exchanged 43.89 million, 28.53 million and 19.12 million shares, respectively.Sectors which dented the index were Oil & Gas Exploration Companies with 68 points, Commercial Banks with 32 points, Fertilizer with 30 points, Power Generation & Distribution with 25 points, and Cement with 19 points. Among the scrips, most points taken off the index were by Hub Power Company Limited which stripped the index of 32 points followed by Pakistan Petroleum Limited with 27 points, Oil & Gas Development Company Limited with 24 points, Muslim Commercial Bank with 23 points and ENGRO with 21 points. However, sectors which continued to resist the pressure on the index were Investment Banks with 7 points, Insurance with 6 points, Vanaspati & Allied Industries with 4 points, Glass & Ceramics with 4 points and Automobile Parts & Accessories with 3 points. Amnb the scrips, most points added to the index was by Habib Bank limited which contributed 17 points followed by TRG Pakistan Limited with 8 points, Lucky Cement with 8 points, Dawood Hercules Corporation Limitedwith 8 points and K-Electric with 7 points.