The KSE-100 average in Karachi, Pakistan fell more than 4 percent, to just above the 6900 level, in the first hour of trade on Monday morning after investors learned of the delay of the sale of as much as 26 percent of shares in state-owned Pakistan Telecommunications (PTCL).

The sale, which was to privatize the company, was expected to raise between US$1.5 - 1.6 billion.

The delay in the sale was announced late Friday night, ahead of a strike deadline of Monday set by the PTCL labour unions in case the privatization went ahead.

The sale, if and when it does occur, is planned to be accompanied by a transfer of management responsibilities to the new purchaser. The new management is then expected to cut many of the company’s 61,000 jobs.

A government minister said that the delay was a temporary measure to avert the strike and that a new date for the sale would be announced, perhaps as soon as this week.

An analyst, however, said that the delay had destroyed any confidence investors had in the sale and that any newly announced date would be met with skepticism.