Index stays stagnant

LEADER REPORT
KARACHI: The KSE-100 Index stayed stagnant at 9,187.10 points with only 56k shares were traded across the board. Only shares of 7 companies with 5 advancers versus no decliners while 2 scrips remained at their previous positions.
SECP issues directions to Stock Exchanges
The SECP has issued new directions to all three local stock markets for removal of the 'flooring mechanism' on their respective indices by Dec 15th. In addition, it has restrained the KSE BoD to interfere into the market mechanism for a period of 90 days beginning Dec 11th, without approval of the commission.
MSCI to remove Pakistan from its Emerging Markets Index!
MSCI announced that it would remove the MSCI Pakistan Index from the MSCI Emerging Markets Index from Dec 31st. The flooring mechanism has virtually shutdown the market resulting in deteriorating investment environments, which has prompted the index to strip Pakistan off its index.
CPI Inflation eases
The CPI Inflation shrank to 24.68 percent in Nov easing from 25 percent in October. Declining oil prices and commodity prices have resulted in easing off the inflation numbers.
Global Indices fall extends
Concerns over the economic health of the giant automakers in the US has left the markets worldwide into dire circumstances as indices across the globe fell. The troubled auto manufacturers were hopeful of getting a government bailout which was rejected by the US Senate. Resulting from the such an act, the markets reacted negatively losing further grounds.
Market to revive in longer term
IMF has restricted the Government to extend any funding to the capital market, however, IMF gave a go ahead signal for the removal of the flooring without any funding, which has created another gloomy situation for the already subdued stock markets. With expectation of the removal of the flooring on Monday under directives of the SECP, the market is expected to go further down during the entire upcoming week. After heavy losses, we may witness some recovery in long term based on attractive values and bettered dividend yields.