Following the downward trends in international capital markets and growing economic uncertainties in the backdrop of unprecedented floods in Pakistan, local bourses remained sluggish during the week ending Friday last. Apart from external pressures, the players were of the view that the market was suffering from low volumes perhaps due to lack of liquidity. Most of the market players believe that the delays in the introduction of new leverage product called Margin Trading System was eroding volumes of trade. To start with the traders opened the week under review on negative note and the Karachi Stock Exchanges KSE-100 Index fell by nearly a percentile in one go. Pundits were of the view that the Pakistani market could not perform well without any margin financing system or so-called leverage product. They, however, agreed to the fact that indigenous Margin Trading System, whether it was old Badla or was newly proposed MTS, would carry systemic risks with it. Rather than opposing introduction of any kind of margin trading system, we need to enhance regulatory and enforcement capacities in order to preempt systemic risk factors. As against the argument of financial institutions and banks financing trading margins independent of the stockbrokers, the analysts observed that this was the financing of a particular position in the market so it had to be done by the market players. Rumours that the Securities and Exchange Commission of Pakistan (SECP) would soon approve the MTS, already approved by the KSE Board of Directors and opposed by its Chairman, boosted the sentiment on the bourses during the second session of the week that was. Thus, on Tuesday, the market soared by three percentiles in one go. As the players across the board expressed renewed interest in trimmed stocks, the volume of trade also improved notably as being more than double the level on Monday. This sentimental bull-run, however, failed to sustain and the market fell prey to the bearish onslaught during the following session as the Index shed by three quarters a percentile on midweek. Not only that the benchmark shed value, the volume of trade also squeezed back to alarmingly low level. Positive undertone of the market resisted the bearish comeback and the market again recovered, though, nominally on Thursday last that was the second last session of the week that was. The trend was third time reversed and the market again fell bearish on Friday last or the last session of the week under review. Pundits, however, observed that the last working session closing on negative note could be good omen for the stocks to open in the following week starting Monday (today). They said that the International Monetary Funds approval to a $450 million emergency assistance for Pakistan might impact well on the portfolio investment in the local bourses. However, they added, the market would remain fixed in a mixed trend until the position of the economy clears out after the completion of the damage and need assessment (DNA) report by the World Bank and the Asian Development Bank (ADB) hopefully by October 15.