KSE-100 unmoved as bourses remained quite (11112008)

LEADER REPORT
KARACHI: Market remained stagnant on Monday as KSE-100 index stayed at its previous position of 9,183.14 while only 123k shares were traded intraday. Out of the 21 shares being traded during the day, 6 securities gained in value while 4 scrips registered a decline while 11 remained at their previous levels.
Flooring expected to go on the 17th!
The flooring mechanism, in place since August 27th, is expected to be removed on Nov 17th in event the Rs50bn rescue package, announced by the GoP, comes into play. The flooring was placed to stabilised the depleting market, however, the flooring put question mark on the integrity of the bourses as investors remained uninterested.
IMF to be formally approached soon
With no other avenue, the country is anticipated to go ahead with a formal request to the IMF for funding to avoid default on its obligations. Four major conditions attached with the funding include; rise in policy rate to 15 percent from 13 percent, a 31 percent increase in utility charges, reduction of fiscal deficit, no government bail out for the stocks markets from the federal budget directly or indirectly and critical review to limit and curtail the Government borrowing from SBP.
China's stimulus package revives global markets
China announced USD586bn economic package to revive the economic concerns that prevailed in the country. 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.
Flooring withdrawal to see the index further down!
With the expectation of flooring mechanism to be withdrawn by Nov 17th, it is expected to put market under immense pressure, however, long term investors may construct their portfolios based on attractive prices and higher dividend, after the market is bottomed out.