Lowest ever turnover on lack of interest (11112008)

LEADER REPORT
KARACHI: KSE-100 unmoved as bourses remained quite, while flooring to be removed on Nov 17th. A paltry 24,500 shares were traded with dealings in only 8 shares taking place with 3 gainers and 1 decliner while 4 remained unchanged. The flooring has halted the market and hampered investor's confidence as there is an anticipation of further hike in policy rate by 150 to 200bps.
Brokers default while KASB funds cease redemption
Two brokers from the KSE were declared "defaulters" by NCCPL while two funds from KASB Funds Ltd denied redemption owed to stringent liquidity conditions mentioning the even extraordinary suggesting loudly the gravity of the liquidity situation in the capital markets.
USD11bn aid expected
Pakistan's economy in dire straits and requires immediate assistance to payoff its debts. In event of that the economic managers are on a worldwide hunt to attract assistance. As a result the country is anticipated to receive aid worth more than USD11bn from sources that include, IMF, ADB, World Bank, IDB and DFID (UK). In addition, deferred payments on oil from Saudi Arabia may also be expected to be agreed upon shortly.
Widening trade deficit
The trade deficit of the country has swelled to USD7.52bn for the first four months of FY09 as it swelled by 33 percent from USD5.64 in corresponding period the previous year. The expansion came through increased import numbers by 24.8 percent while exports also grew, however, at a slower pace of 16.6 percent over the similar period in FY08. Highest deficit and depleting foreign exchange reserves, the country is heading towards precarious balance of payment position.
Stocks drop again
China's economic package worth USD586bn to revive the economic concerns that prevailed in the country, did bring some recovery in the global indices, however, the revival was short lived as the markets reacted negatively on the fears of global economic recession. Being the largest contributor towards world's growth, the package is expected to result in aversion of highly anticipated recession, which bode well for the bourses worldwide, the fears still persist.
Discount rate rise to put market under further gloom
Expectation of discount rate hike by 200bps to 15 percent in wake of IMF requirement is further put pressure on the overall interest rates and put further pressure on the investors and the market alike. Removal of flooring as expected on the 17th will see immense selling rally after which revival may play its role.