Record low volumes witnessed (19112008)

LEADER REPORT
KARACHI: Lowest volumes recorded as 19k shares were traded: 7 scrips exchanged hands with 2 positives, 3 decliners while 2 scrips remained at their previous levels.
Foreign Investment shrinks
During the first four months of FY09, net foreign investment shrunk by 30 percent as precarious economic and law & order conditions persist. The huge decline in foreign inflow resulted from a massive outflow of portfolio investments by over USD487mn owed to the deteriorating equity markets and instability. The foreign investment stood at USD1.145bn against USD1.63bn in similar period FY08.
C/A Deficit up 98 percent
The country's current account deficit expanded by 98.5 percent during Jul-Oct'08 when compared to corresponding period. The deficit grew to USD5.94bn. The country has finally reached agreement for availability of USD7.6bn fund from the IMF to meet the balance of payment obligations that are coming due to shortly. However, it does bring with it, some stringent conditions including hike in discount rates, increase in tax to GDP ratio and gradual withdrawal of all subsidies.
Global Indices down on depression scares
The global economic situation looks scary as markets across the globe shed weights on fears of further recessions as growth results largely varied forecasts, while economic powerhouses including Germany and Japan plunged into recession. Economies worldwide, announced bailout packages and lowered key rates to rescue the financial markets but in vain. More efforts are required to be enacted to ensure stability all over.
Situation remains doubtful,
stability over a longer time-line
Pakistan's economic situation has become precarious as "Friends of Pakistan" remained reluctant to support the country due to the weak economic conditions. However, lending from IMF will instigate hope for the forum to extend its support through investments in the country by accepting the comprehensive road map to put Pakistan back on its feet, shaken by the financial crisis. On the equity market front, investors are advised to stay sidelined and watchout for plunges after the removal of the flooring. Long term investors can construct their portfolios once the market plunges to its bottom to see some stability over a longer timeline.