Lowest ever turnover at Karachi Stock Exchange (08112008)

LEADER REPORT
KARACHI: Bourses continued their depressive mood on Friday while volumes registered their record lows of only 78,500 shares being traded intraday as flooring mechanism prevailed without any certain deadline for the removal yet to be seen. 5 scrips gained values while 3 companies depreciated amongst the total of 19 scrips. The deepening of the stock market is evident from the fact that NCCPL has served notices to payoff their debts or will face default in event of failure to pay.
Economic Managers all out
on a hunt
Financial Advisor to the PM is expected to initiate meetings with top UAE leadership with a view to convince them about Pakistan's financial woes and soliciting their support.
This meeting will be conducted before meetings with "Friends of Pakistan" that form another ray of hope for economic support.
The country's economic mangers are actively hunting for all alternatives to cater the immediate financial needs to avoid IMF help, which will bring with it some harsh stipulations.
Bank of England & European counterpart cut rates
Another rate cut was seen as Bank of England and European Central Bank further minimised their interest rates on Thursday, following the US and Bank of Japan cut their respective rates last week.
Monetary policy is being eased all over to mitigate the prevailing credit crisis, nevertheless it is inflicting harsher blows to growth and inflation than was anticipated by the central banks few months ago.
IMF eyes recession
IMF is predicting recessionary pressure amongst developed nations with a shrinkage of 0.3 percent against a 0.5 percent growth, while it cut the global expansion estimates to 2.2 percent from its earlier prediction of 3 percent.
The US sub prime mortgage debacle has virtually put the entire globe under enormous pressure primarily the giant economies.
Some positives were seen when Government partially nationalised various banks while investing and support the financial markets by slashing key interest rates, however, the hit seem so severe that the bail out packages seem to be far from sufficient and the crisis continue to escalate.
Flooring withdrawal to see the index further down
Flooring mechanism is expected to continue with no time frame announced for its withdrawal yet announced by the KSE BoD.
The flooring has practically halted the market with no investor involvement seen and bourse remain deserted.
With the removal we may see market to see further blows to witness new lows, but it will make the market attractive.