OUR STAFF REPORTER KARACHI - The local equity market remained volatile and closed in the red zone on Monday while the volume of the market also declined. The Karachi Stock Exchange (KSE) 100-share index fell 98.22 points or 0.79 per cent to end at 12,291.90 points as against its closing at 12,390.12 points last Friday. The KSE-30 index lost 58.09 points, or 0.49 per cent to close at 11,731.96 points. The market turnover dropped to 1.65 million shares compared to 65.10 million shares traded previously. Ahsan Mehanti, Director at Arif Habib Investments said bearish activity continued to witness at Karachi Stock Exchange on Monday amid thin trade. Concernsafter the United States withhold $800 million of Pakistan military aid and rising political uncertainty on imposed commissionerate system in Sindh province affected the investors sentiment sharply. Law and order concerns in the city, fall in global commodities and capital markets, limited foreign interest in the earnings announcement session played a catalyst role in negative activity at Karachi Stock Exchange despite strong valuations in blue chip scrips, he added. Hasnain Asghar Ali, a senior analyst at Aziz Fida Husein & Co. said that early low volume strength led gains were well targeted by higher offers thereby forcing the benchmark to reenter red zone, decision by the US of withholding $800 million military aid along with various sensitive demands, release of remaining tranche due from International Montary Fund in doldrums, along with tense political and law and order situation, left no option for the handful participants, but to ease off their positions mainly in the high priced stocks. Despite propagations regarding upcoming results, mainly due to curtailed local strength, thereby forcing the benchmark, to sail in red sea, dead volumes seeming increased the anxiety by the closing hour thus forcing the benchmark to wipe off 100 points, amid extremely low volumes, he added.