KARACHI - The stock market witnessed bearish trend on Tuesday as the benchmark 100-index plunged down by 202 points to close at 8734.22 points. Political uncertainty and security concerns kept the investors totally at the sideline and the daily volume drastically declined to 77.9 million shares as compared to 97.121 million to last trading session. The market began with bearish note this morning and investors preferred selling shares due to deteriorating law and order situation. The KSE 100-index opened in red zone with a loss of 1.89 points and at the end of the day closed at 8734.22 with a loss of 202.26 points. KSE 30 index closed at 9166.47 with a loss of 229.97 points. KMI-30 index closed at 12618.90 with a loss of 284.56 points. All shares index closed at 6209.03 with a loss of 143.51 points. Trading activity was minimal as compared to the last trading session as the ready market volume stands at 68.003 million shares as compared to the last trading session 97.121 million. Future market volume however stands at 1.847 million shares as compared to 2.013 million shares last trading session. Market capitalisation stands over Rs2.538tr. Total trades decreases to 53,989 as compared to last trading session 79,504. As many as 68 companies advanced, 249 declined and 12 remained unchanged. Highest volumes were witnessed in JSCL at 5.669 million closed at Rs28.01 with a loss of 1.47 followed by NML at 4.051 million closed at Rs56.14 with a loss of 2.95, AHSL at 4.029mn closed at Rs.46.01 with a gain of Rs.2.42. Ahsan Mahenti at Shehzad Chamdia Securities said that intense selling witnessed on limited hopes of discount rate cut and uncertainty over Pakistan market inclusion in MSCI emerging market status in November review results by MSCI. Investors remained concerned over continuing foreign outflow, security concerns in the country and prevailing political uncertainty. Hasnain Asghar Ali at Aziz Fidahusein said mixed opening amid low turnover reinitiated low volume price erosion, and the benchmark after initial resistance on back of index heavy weights, failed to sustain the pressure and went in red zone. With local interest deteriorating mainly due to absence of positive triggers, and unavailability of carry over mechanism, foreign based activity was awaited. Extended stagnation, however, painted the board red, due to sell-off mainly in the expensive stocks. The erratic activity by off-shore participants gives an idea that probably due to high impact cost and high chances of price erosion rapid inflows are being reported to build the sentiment for an easy exit, the stubborn locals are unlikely to get trapped, as most of the activity is being done for short term, with strict stop losses. With concerns of economic front still lingering the local liquidity will wait for further discounts. Wherein multiples are low and dividend yields are high, at least in double digits, relative calm on law and order and easing up of political issues did allow cautious activity in low priced stocks. While snap rallies mainly to build the sentiment and change of hands were visible in high price stocks, before the local bourse under went a fresh round of bearish spell. Approval of MF product by the regulators was expected by some to become a trigger, but ground realities defer from the assumption, as only a user friendly ready board leverage product, a modified CFS can become a trigger. Thus allowing the local strength to improve, besides allowing the local equity markets to reinvite high turnover up to the potential, the reason that brought the local bourses on the radar of international fund managers. Decline in payout ratios of the paymasters mainly due to circular debt as is being blamed will certainly lead to downward revision of their fair values if the graph continues to stay in Dec, end results, low chances of decline in local interest rate by the much expected number of 100 bps, mainly in the stringent environment, wherein growth is being compromised yet inflation stays highly sensitive to the international oil prices. Change in stance by the authorities may however provide spur not only to the local equity market but also to the ailing economy.