Govt to buy stocks from support fund next week: Tarin

ISLAMABAD: The government will start taking positions in the stock market from the next week with the help of Rs20 billion market support fund.This was stated by Advisor to Prime Minister for Finance, Shaukat Tarin during the meeting of National Assembly Standing Committee for Finance.He said the government will ensure protection to the small investors while providing safeguarding of big brokers is not among the priorities of the government.Shaukat Tarin told the meeting that 500 million dollars will be received from the World Bank during this quarter. Similar amount is also expected to come form China in the first week of January, he added.He informed the rate of inflation is steadily dropping.

Wall Street gains as GMAC gets financing

NEW YORK – Wall Street staged a big advance in the next to last session of 2008 Tuesday after Washington's latest lifeline to the auto industry bolstered hopes that the government will do whatever is necessary to cut short the recession.
Investors found solace in news that General Motors Corp.'s troubled financing arm received $5 billion of financing. The Treasury Department said late Monday it would provide the money to GMAC Financial Services LLC from the $700 billion bank rescue program.
The injection is on top of the $17.4 billion in loans the Bush Administration agreed to provide to the auto industry on Dec. 19. GMAC said Tuesday it would immediately resume lending to certain customers it had previously said were too great a risk for auto loans because of tight credit markets.
"This is trying to slow down the economic train wreck," said Jack Ablin, chief investment officer at Harris Private Bank. "Investors are taking a step back, and realizing that this will enable auto buyers to finance their cars and add liquidity to the market."
Ablin also said the move will have an effect on the entire economy, especially amid a backdrop of sluggish consumer spending, which drives more than two-thirds of the U.S. economy.
Wall Street got another disappointing reading about the mood of Americans after the Conference Board reported its Consumer Confidence index dropped to a record low. The trade group reported the index's reading fell to a 38 in December from a revised 44.7 in November, well below the expectation of 45 economists surveyed by Thomson Reuters.
Investors were well prepared for a downbeat report after consumers reluctant to spend left retailers with their worst holiday season in years. The International Council of Shopping Centers said Tuesday that weekly same-store sales, those from stores open a year or more, dropped 1.5 percent last week at the 40 retailers it polls.
The Dow Jones industrial average rose 184.46, or 2.17 percent, to 8,668.39. But even with that advance, the blue chips are still down 36.04 percent for the year with one more trading day remaining.
Broader indexes also moved higher. The Standard & Poor's 500 index rose 21.22, or 2.44 percent, to 890.64, leaving it down 40.79 percent for the year; while the Nasdaq composite index added 40.38, or 2.67 percent, to 1,550.70, leaving it down 43.06 percent for 2008.
With many traders away for the holidays, volume was low, which can exaggerate price moves. Advancing issues led decliners by 4 to 1 on the New York Stock Exchange, with consolidated volume at a light 3.23 billion shares, up from 2.98 billion on Monday.
Most investors are looking past 2008 for clues about how stocks will fare in the coming year.
Subodh Kumar, global investment strategist at Subodh Kumar & Associates in Toronto, said the market's moves in the final days of the year are more noteworthy than some investors realize; stocks have been fairly steady despite low volume that could easily lead to sharp declines. But he predicts trading will remain volatile into mid-2009.
"It's still relatively encouraging that the markets have been able to hold up," he said.
Investors might have been able to overlook the disappointing consumer data after a surprise uptick in the Chicago Purchasing Managers' index, which measures business conditions across Illinois, Michigan and Indiana. It advanced in December for the first time since August. Wall Street had expected a decline. The index, which rose 34.1 from 33.8 in November, is considered a precursor to the Institute for Supply Management's manufacturing survey on Friday.
Bond prices were higher. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.06 percent from 2.10 percent late Monday. The yield on the three-month T-bill, in great demand because it is considered one of the safest investments, rose to 0.06 percent from 0.03 percent late Monday.
Light, sweet crude fell 99 cents to $39.03 on the New York Mercantile Exchange. Oil prices rose Monday as investors worried fighting between Israel and Hamas in Gaza would disrupt oil shipments.
The dollar was mixed against other major currencies, while gold prices fell.
In corporate news, shares of GM rose 20 cents, or 5.6 percent, to $3.80 after GMAC was given government financing. GM owns 49 percent of GMAC, while private equity firm Cerberus Capital Management holds the remainder.
The Federal Reserve last week approved GMAC's application to become a bank holding company, a move that cleared the way for the company to receive money from the financial rescue fund. In addition to the cash infusion for GMAC, the government also agreed to lend $1 billion to GM so it can contribute to the financing arm's reorganization as a bank holding company.
Meanwhile, General Motors said it is offering financing as low as zero percent over the next week for several 2008 and 2009 models in a big year-end sales push.
The Russell 2000 index of smaller companies rose 16.62, or 3.57 percent, to 482.77.
Overseas, Japan's Nikkei stock average rose 1.28 percent in the final session of the year, ending 2008 with a loss of 42 percent. Markets in Japan are closed for a holiday Wednesday. Britain's FTSE 100 rose 1.70 percent, Germany's DAX index rose 2.24 percent, and France's CAC-40 rose 2.76 percent.

KSE decides to utilize MPFs

KARACHI: Karachi Stock Exchange (KSE) has decided to utilize Members Protection Funds (MPFs) in view of the prevailing market conditions.This will provide an opportunity of borrowing up to Rs500 million each from the fund for a particular time period. The opportunity is for those stock members who are unable to clear payments against losses.Presently there is more than Rs2 billion in KSE Members Protection Funds.

Asian markets open mixed

Tokyo stocks opened only slightly lower Friday after a down day on Wall Street, buoyed by the possibility of an interest rate cut by the Bank of Japan.

Asia stocks opened mixed, but with little movement.

The Japanese government said Friday it expected a shrunken economy when the fiscal year ends in March. But investors on the Nikkei index, concerned with the growing recession, held out hope for the interest rate drop and held the index to a .16 percent fall.
Elsewhere, stocks were mixed, but with little movement. Australia's All Ordinaries index fell .41 percent and the Shanghai composite index was down .39 percent. But Seoul's KOSPI index was up .56 percent and Hong Kong's Hang Seng index rose .24 percent.
On Wall Street Thursday, a selloff accelerated in the last hour of a volatile session as traders squared up positions for a handful of options expiring Friday, known as "quadruple witching."
The Dow Jones industrial average ended down 219 points, or 2.5 percent. The broader Standard & Poor's 500 index fell 19 points, or 2.1 percent, and the Nasdaq composite shed 27 points, or 1.7 percent. All three indexes seesawed in early trading.
The market is typically more volatile ahead of "quadruple witching," when equity options, stock index futures, stock options and single-stock futures all expire on the same day. There are four such Fridays in the year, and they tend to be preceded by increased market volatility.
"Most of the action around that occurs the day before," said Fred Dickson, chief market strategist at D.A. Davidson & Co. "What we are seeing at the end of the day is an option and futures selloff related to tomorrow's expiration."
Investors also focused on the recession, which has delivered a slew of sour economic reports and has chipped away at global demand for oil.
A torrent of bad news that had been ignored in the previous session came back to haunt the markets in the afternoon session. "We have had a market that has really, up until yesterday, been pretty resilient in the face of negative news," said Art Hogan, chief market analyst at Jefferies & Co. "The market has been ignoring a lot of bad news and it is not ignoring it today."
With the holiday week approaching, trading has also slowed. "Volume is fairly low," said James Shelton, chief investment officer at Kanaly Trust Company. "The markets are getting ready for the holidays."
Market breadth was negative. On the New York Stock Exchange decliners beat out advancers 3 to 2 on a volume of 1.4 billion shares. Meanwhile on the Nasdaq, decliners beat out advancers nearly 2 to 1 with a total market volume of 2 billion.
The dollar gained against other major currencies, with the yen just off the 13-year high it reached against the dollar Wednesday. Meanwhile, the 15-nation euro and the British pound both lost against the greenback.
Treasury prices, meanwhile, continued to rally, sending yields to record lows. The benchmark 10-year note rose 1-4/32 to 114-30/32 and its yield fell to an all-time low of 2.07 percent, down from 2.18 percent late Wednesday.

Swift measures to prevent KSE members from defaulter

KARACHI: Karachi Stock Exchange (KSE) Board has resolved to take swift measures to prevent its members, having expired membership cards, from going to default on Thursday.

According to sources, the special committee, formed for CFS market, has decided to buy the shares of expired membership cards holders below 12.5 percent prices of the market price of December 24.

KESC Board said that CFS financers would buy their shares costing Rs. 3.90 billion below 12.5 percent price of market price of December 24.

Stock market turmoil to hit banks

KARACHI: The current equity market turmoil has raised concerns over its impact on various stakeholders, particularly the banking sector, which carries substantial exposure through a combination of direct investment, margin financing and CFS financing.“The banking sector is already going through a tough phase due to declining deposit growth and rising bad loans because of high interest rates and credit crunch. Our estimates suggest that banks have an exposure in the range of Rs100-150 billion in the stock market, which is 20-25 per cent of their equity base,” stated Farhan Rizvi, analyst at JS Research, in a report.With the Karachi Stock Exchange index already down 24 per cent since the lifting of floor on Dec 15, “we think further erosion in the sector’s book value along with capital adequacy ratio (CAR). Moreover, default on margin financing and Continuous Funding System (CFS) exposures also remain significant risks for the sector.”According to an analysis of 11 JS Universe banks (78 per cent of the banking sector), he said the exposure in capital markets was in excess of Rs100 billion ($1.3bn) as of Sept 30, which was 24.6 per cent of their equity. That did not include margin financing against shares whose statistics were not available and were reported to be in the range of Rs30-50bn for all banks.“We have already seen a sharp decline in revaluation surplus during the quarter ended Sept 30, with Rs23bn fall in investment revaluation reserve,” he added.Apart from concerns over equity investment, other major risk facing the banking sector is exposure in CFS MK-II and margin financing. The CFS has been particularly in the limelight due to a lawsuit filed by a few brokers and counter-suit by some banks.According to Sept 30 financial accounts, total exposure of banks in JS Universe in CFS MK-II was Rs9bn (60 per cent of total outstanding amount of Rs15.2bn). Moreover, according to various news reports, exposure in margin financing was in the range of Rs35-50bn.The banking sector continues to remain under stress due to a combination of economic slowdown, liquidity crunch and increasing asset quality concerns, which has forced banks to make heavy provisions for non-performing loans (NPLs).According to official data released by the State Bank, total banking sector provisions rose by Rs44bn till Dec 13.

Asian markets fall

TOKYO: Asian stock markets were mostly lower on Monday as a US pledge to loan troubled automakers $17.4 billion failed to ease worries about a deteriorating world economy. Hong Kong's Hang Seng Index dropped 1.7 percent to 14,874.61, and Australia's key index was down 1.6 percent. South Korea's Kospi dipped 0.2 percent after opening higher and Singapore's benchmark was down 0.5 percent. Tokyo bucked the regional trend, with its Nikkei 225 stock average rising 130.68 points, or 1.5 percent, to 8,719.20 despite the latest bad news about the country's exports. Last week in New York, Wall Street finished a choppy session mostly higher. The Dow fell 25.88, or 0.30 percent, to 8,579.11. The Standard & Poor's 500 index rose 2.60, or 0.29 percent, to 887.88. U.S. futures were up modestly, meaning Wall Street was poised for a higher open. In currencies, the dollar strengthened to 89.98 yen, up from 89.24 yen, and the euro rose to $1.4007 from $1.3913 late Friday.

Global stock markets downbeat, despite US auto bailout

NEW YORK: Global stock markets last week remained struggling in the grip of negative trend, despite US and Japan cut down in interest rates and US approval of $17.40 billion auto bailout package.The investors all across the world this week remained cautious and preferred selling the shares for profit taking. At the end of this week, US Dow Jones index eroded 50 points, while NESDEQ index gained by 20 points. In the Asian markets this week, Japan’s Nikkei-225 index crashed by 239 points, while Hong Kong’s Hang Seng index by 236 points. And India’s Sensix-30 index was seen breaching 10,000 marks at the end of the week, closing at 10099 points. European stock markets also this week remained in sagging mood, as France’s CAC-40 index dropped by 32 points and in Germany dipped by 22 points, while Britain’s FTSE-100 index rose by 7 points.

Satyam stock rebounds, Maytas still falling

Mumbai, Dec 18 (IANS) The Satyam scrip recovered somewhat Thursday after Wednesday’s rout at the Indian stock markets following its management’s decision to take over two group companies, a decision it had to revoke within hours. The scrip of Maytas Infra - one of the group companies Satyam was hoping to acquire - kept falling Thursday for the second day in succession.
Satyam’s stock was trading about 6 percent higher on the 30-share sensitive index of the Bombay Stock Exchange (Sensex), with the scrip ruling at Rs.168-levels in midday trading, compared to Wednesday’s close of Rs.158.05.
“The IT business of the company is not a bad bet and at current levels, it seems a good buy, hence the rise in prices for Satyam,” said an analyst from a leading brokerage firm.
Satyam’s bid to buy out Maytas Properties and Maytas Infra has not gone down well with investors, analysts and industry trackers, which forced the company to shelve the acquisition plans.
The Maytas Infra scrip was at Rs.310.65 at the Bombay Stock Exchange around midday, falling almost 20 percent since its previous close of Rs.388.25. The scrip, which was trading above the Rs.500-level till Tuesday, fell 20 percent Wednesday to close at Rs.388.25.
Maytas Properties is an unlisted company.
Satyam’s stock was hammered on the bourses Wednesday, with over 33 million shares changing hands, and the scrip shedding over 30 percent or Rs.68.45 to close at Rs.158.05.

Country’s stock markets melt for the third day in a row

KARACHI: Karachi Stock Exchange (KSE) amid the bourses all across the country today remained passive and tame for the third consecutive day, which saw the index during the brief three days losing 11 percent.KSE opened today on a negative note, which remained pervasive until the end of business session, which culminated into the KSE-100 index melting down by 260 points to 8184 at close. KSE during the last three days has evaporated enormous 1000 points, while the KSE system glitch alarmingly showed index eroding 4001 points to peg at 4444. The volume of trade today aggregated to 57.8 million shares. Volume leader TRG Pakistan shares price down by Rs0.54 closed at Rs1.28.Lahore Stock Exchange (LSE)-index after a minor loss of 6 points wrapped up at 2468, while the Islamabad stock market at the very onset recorded 5 percent lower locks sending the trade into an early suspension. Analysts said that the pessimistic trend in the market would continue until the issue of existing Rs11 billion worth of shares in CFS financing was resolved.

KSE Meezan 30 Index re-composed

KARACHI: Karachi Stock Exchange (KSE) has undertaken re-composition of KSE-Meezan 30 Index for the review period from January 1, 2009 to June 30, 2008.As a result six companies of the Index will be replaced by Lucky Cement, Dawood Hercules Chemicals, Glaxo Smith Kline Pakistan, BankIslami Pakistan, Mari Gas Company and Crescent Steel & Allied Products.The outgoing companies are: Thal Limited, Kohat Cement, Pioneer Cement, Attock Petroleum, Abbott Laboratories Pakistan and BOC Pakistan limited.

SECP to challenge SHC decision over KSE floor

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) would abide by the decision of Sindh High Court (SHC) to retain the Karachi Stock Exchange floor, however, it has decided to challenge the verdict as well.This was stated by SECP chairman Razi-ur-Rahman after the SHC issued stay order here on Saturday to retain the minimum floor index at KSE. He said SECP would respect court’s verdict as regards KSE but Lahore and Islamabad Stock Exchanges would have to remove the floor from December 15.It is worth mentioning that the SECP chairman had earlier issued directives to remove KSE floor from December 15. However, the brokers had asked the government not to remove floor without introducing Market Support Fund (MSF) otherwise the number of defaulters would increase.

KSE continues to witness dull activity

KARACHI: The 100-Index of Karachi Stock Exchange(KSE) closed unchanged at 9,187.10 on Friday amid lack of interest.The turnover volume was low at 56,000 shares as four scrips recorded gains while one sustained loss and two remained unchanged out of a total of only 7 companies.The market capitalization was eroded by Rs 8.542 million to Rs2.808 trillion.Dealers said that trading volume was down again due to lack of interest coupled with the fear of lifting of price flouring on December 15, 2008 on the instruction of SECP.National Assets was the volume leader with a turnover of 39,500shares followed by Saritow Sp 6,000 shares, Pak PTA 5,000 shares, JOV& Co 2,000 and Habib-ADM Ltd 2,000 shares and UDL Modaraba 1,000 shares.Habib-ADM Ltd closed at 9.63, Pak PTA 3.18, Saritow Sp 1.50, JOV& Co 21.12 and UDL Modaraba 3.07.Taxila Engg recorded the highest gains of Rs 1 to 5.46 and Saritow Sp moved up by 14 paisa to 1.50 while Habib-ADM Ltd dipped by6 paisa to 9.63.

Trading improves on KSE

KARACHI (December 08 2008): Trading at Karachi share market improved during the week ending on December 7, 2008, with average daily volume increasing by 300 percent to 197,300 shares as compared to the previous week's 64,920 shares. However, KSE-100 index remained unchanged at 9,187.10 points, while no trading was seen at the futures counter.Market capitalisation declined by Rs 3 billion to Rs 2.817 trillion. A fresh inflow of $1.203 million of foreign portfolio investment at the equity market was witnessed. "The average daily volume reflecting investor confidence in the market jumped by a deceptive 301 percent, demonstrating a low base effect", Muniba Saeed, an analyst at Invest Capital & Securities said.With the floor scoring a century during the week, being in place since August 28, the KSE-100 index practically stagnant at the level of 9,187 points as activity remained insufficient to cause any visible movement in the index.The week was exceptionally eventful with terrorist attacks breaking out in Mumbai, and attention of the leadership was diverted towards effective dealing of political nuances arising after the attack. Besides, decrease in petrol and diesel prices, along with a 26.4 percent increase in forex reserves cheered up investor interest. However, all this was overweighed by uncertainty brought about with Pakistan's admission in the IMF programme.

Stocks get bailout boost

NEW YORK (CNNMoney.com) -- Stocks rallied Wednesday, recovering from a mid-afternoon retreat, as investors welcomed reports that Congress and the White House have struck a deal to provide a $14 billion bailout to the struggling auto industry.
The Dow Jones industrial average (INDU) added 0.8%. The Standard & Poor's 500 (SPX) index gained 1.2% and the Nasdaq composite (COMP) also gained 1.2%.
Stocks rallied through the early afternoon in response to the auto bailout news, lost steam after the release of the November Treasury budget, and then recharged the advance near the close.
The Treasury budget widened to $164.4 billion last month from $98.2 billion in the previous month, versus forecasts for a $171 billion gap.
The budget deficit now totals $401.6 billion in just the first two months of the fiscal year, October and November. The budget deficit for all of fiscal year 2008 was $455 billion.
Stocks slipped Tuesday as investors pulled back after a big rally in the previous 2 1/2 weeks. Between hitting the most recent bear market lows on Nov. 20 and Monday's close, the S&P 500 rose 21%.
After that selloff, stocks managed some gains Wednesday, which partly reflected that an auto package is looking more likely, said Michael Sheldon, chief market strategist at RDM Financial Group.
While the advance was likely a bear market rally, there is also some genuine optimism that has been lifting stocks of late, he said.
Investors are getting hit by awful economic news and corporate profit forecasts. But they are also seeing the significant policy response by the Federal Reserve and government, as well as central banks and governments around the world.
"With an auto rescue package likely and a very large stimulus package likely early next year, some investors are starting to see the light at the end of the tunnel," Sheldon said.
Automakers: Congress and the White House have reached a deal on a $14 billion auto sector bailout that could bring a vote later Wednesday. The package would enable GM and Chrysler to avoid filing for bankruptcy through at least the end of March.
It is assumed that this would be sufficient time for the Obama administration and the new Congress to come up with a longer-term solution for the ailing automakers.
Ford Motor is also eligible for part of the loan, but the company says it has enough cash to avoid bankruptcy for now and just wants access to the money as a backstop.
However, investors took a sell-the-news approach and sent shares of GM (GM, Fortune 500) and Ford Motor (F, Fortune 500) lower.
Meanwhile, GMAC Financial Services, General Motors' finance unit, is struggling to raise enough capital to become a bank holding company, something it must do to access much-needed federal funds.
Experts worry that the failure of any one of the Big Three could trigger massive job losses and send the U.S. deeper into recession.
The U.S. has been in a recession since December 2007, according to a National Bureau of Economic Research report released last week. A majority of top-level executives think the recession will last at least another year, according to a survey by Duke University released Wednesday.
In economic news Wednesday, October wholesale inventories fell 1.1% versus forecasts for a decline of 0.2%. Inventories fell a revised 0.4% in the previous month.

Stocks struggle after recent rally

NEW YORK (CNNMoney.com) -- Technology shares managed gains Tuesday afternoon while the broader market retreated in choppy trading as investors considered the fate of the automakers and opted to retreat after the recent run.
The Dow Jones industrial average (INDU) declined by 0.9% with around 3 hours left in the session. The Standard & Poor's 500 (SPX) index was barely changed and the Nasdaq composite (COMP) gained 0.9%
Stocks had been on both sides of unchanged through the session as investors digested the day's batch of negative corporate news and kept an eye on the latest news on a potential automaker loan package.
An agreement on a loan package for the auto industry had been expected late Monday. But lawmakers were still debating the details Tuesday, with a package now expected later today.
The back-and-forth was perhaps causing some of the stock weakness Tuesday, with investors eager to see a resolution, said Ron Kiddoo, chief investment officer at Cozad Asset Management.
"The automaker talk is part of it, but really we've had some pretty good moves off that Nov. 20 low and so people are taking a breather," he said.
Since hitting the most recent bear market lows on Nov. 20, stocks, as represented by the S&P 500, have risen 21% through Monday's close.
Monday was a big day on Wall Street, with all three major gauges gaining at least 3.5% in response to President-elect Barack Obama's plan to create 2.5 million jobs by 2011 and reports that a bailout for the automakers is en route.

Court closes Kuwaiti stock market

The Kuwait stock exchange has been closed until 17 November following an unprecedented court order.
A local court ordered the closure after investors complained that the government was not doing enough to stem heavy stock market losses.
The emirate's stock exchange, the second largest in the Arab world, has fallen 43% since June.
Kuwaiti sovereign wealth funds have bought hundreds of millions of dollars of stock, but the slide has continued.
The central bank has also injected billions of dollars into the system in an effort to protect the Kuwait from the global financial turmoil.
Protests
The court's decision follows recent demonstrations and walk-outs by share traders.
A BBC correspondent said the government faced increasing calls to do more to protect the local economy from the effects of the global financial crisis.
One of the main Kuwaiti lenders, the Gulf Bank, is reported to have lost up to $1bn in failed derivative deals.
Other Middle Eastern markets have also been affected recently, with Saudi Arabia's stock market, the Arab world's biggest, having fallen by more than 40% since the start of the year.
Analysts say investors in the Gulf are worried that the global financial crisis and the recent fall in oil prices could prompt governments to cut public spending - a main engine of the region's economies.

Stocks rallied toward the end of last week despite abysmal news on the economy. This week brings readings on housing, consumer spending and the trade

NEW YORK (CNNMoney.com) -- The worst monthly jobs report in 34 years failed to send stocks lower late last week, begging the question of whether the market has finally found that elusive bottom.
Not likely, analysts say. But the stock gains on Friday and over eight of the last 10 sessions, despite a barrage of increasingly awful economic news, are certainly notable.
The week ahead tests the trend, as investors digest reports on housing, inventories, jobless claims, the trade gap, producer prices, retail sales and consumer sentiment. All are expected to show weakness. (For details click here).
The week ahead also could bring a breakthrough for the automaker industry, with Congress expected to come up with some sort of proposition to help the Big Three. GM, Ford Motor and Chrysler went to Capitol Hill last week to plead for a $34 billion bailout for the troubled industry. (Full story)
Polls show a majority of Americans don't want to see a government bailout of the automakers - not when so many other industries are ailing too. But economists say the impact to the economy and to the labor market should any one of the companies fail would be devastating.
And the last thing investors need is more abysmal news on the economy. On Friday, the government said the economy shed 533,000 jobs in November, and its September and October job-loss numbers were revised upward. In total, the economy has lost 1.9 million jobs in 2008, worse than what it lost in the 2001 recession. During the week, AT&T, JP Morgan and other companies announced more than 43,000 job cuts.
Early last week, the National Bureau of Economic Research confirmed what many have long assumed: that the economy is in a recession. NBER put the start date at around Dec. 2007.
"Given the economic environment we are in and the startling job loss in November, this would probably be as bad a time as I can think of to let the Big Three go without funding," said Stuart Hoffman, chief economist at PNC Financial Services Group.
Even with some sort of loan package, the companies will still restructure and shrink, but it's the difference between an orderly slowdown and a fast retreat, he said. And the economy is in no shape for a fast retreat.
Alternately, "if the auto funding matters get resolved, that is going to be a big boost for both consumer spending and the market psychology," said Tim Speiss, head of the Wealth Advisory Practice at Eisner LLP.
Stocks don't need any more bad news. Between closing at an all-time high on Oct. 9, 2007 and the recent low on Nov. 20, the S&P 500 shed 52%.
"The big question is how much of the negative news has been priced in," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "Was that 52% enough?"
Stocks have rallied 16% since that November low. While that's encouraging, Detrick said investors are bound to sell into year-end, with both individuals and professionals looking to cash out.
Last week, investors pulled roughly $12 billion out of equity mutual funds, after putting $!0.4 billion into funds in the previous week. Investors have cashed out of equity mutual funds in 16 of the last 18 weeks.

Asia stocks mixed

TOKYO: Asian markets were mixed Thursday as investors waited for key interest rate decisions in Europe later in the day and braced for more bad news from Friday's U.S. jobs report. Oil prices fell to fresh three-year lows. Japan's Nikkei 225 average fell 79.86 points, or 1 percent, to7, 924.24.Hong Kong's Hang Seng index dipped 0.6 percent to 13,509 points, but mainland China's Shanghai Composite index rose 1.9 percent to2001.5 on news that a government fund announced it had bought sharesin a major bank. New Zealand's share index rose 0.9 percent after the central bankslashed its cash rate by a record 1.5 percentage points. Elsewhere, markets in Singapore, India and Indonesia rose, but those in Taiwan, Thailand, the Philippines and Malaysia fell.

Little trading in KSE persists, index ends unchanged

KARACHI: Karachi Stock Exchange (KSE) sloppy trading activities continued for the third consecutive day in a row today.The market today also opened on negative note, which remained the order of the day till the closing of the business session, when KSE-100 index unchanged wrapped up at 9,187 points.The volume of business stood at 41,200 shares. Volume leader Habib ADM shares price up by paisa 1 reached at Rs9.75. Experts think that the trading activities in the days to come could remain dull and dreary.

Asian stocks rebound

TOKYO: Asian stocks clawed back some ground in early trade Wednesday after Wall Street rebounded overnight on hopes for a US government rescue for ailing Detroit automakers. Stocks rose 1.0 percent in Tokyo, 1.4 percent in Hong Kong, 1.5 percent in Seoul and 2.2 percent in Sydney, after substantial falls Tuesday. The Dow Jones Industrial Average rallied 270.00 points or 3.31 percent, clawing back from a 679-point loss the previous day. In London, the FTSE 100 closed 1.41 percent higher, while Paris's CAC 40 added 2.35 percent and Frankfurt's DAX jumped 3.12 percent.

Indian stocks fall in wake of terror attacks

MUMBAI: India's stock market fell sharply Monday, reversing early gains, amid uncertainty over the political and economic outlook after terrorist attacks killed more than 180 people in the country's financial capital.Also weighing on investors were fresh signs that economic downturns in the U.S. and Europe, both major export markets, were weakening demand for Indian-made goods.The Bombay Stock Exchange Sensitive Index, or Sensex, closed down 252.85 points, or about 2.8 per cent, at 8,839.87 on light volume after opening higher. The index rose 0.7 per cent on Friday after being shut on Friday.While the attacks could keep tourists and foreign investors away, at least in the short term, analysts attributed Monday's declines to a temporary hit to sentiment rather than a loss of confidence about India's economic prospects."There's nobody interested in the market right at this moment," said Gul Teckchandani, a Mumbai-based investment analyst. "Everybody is glued to the television as to what the politicians are going to do in improving security in the city and how they plan to tackle problems going forward."Don't forget, people involved in the market have lost friends and family," he added. "It is playing on our minds, there is discomfort."Adding to the unease, government data showed Monday the country's exports fell 12.1 per cent last month compared to a year ago, further evidence that the global slowdown was taking a toll on India's economy.Shares of Maruti Suzuki India Ltd., the nation's largest car company, tumbled 8.7 per cent after it reported a sharp drop in sales last month. It dragged down other automakers along the way, with Tata Motors Ltd. and Mahindra & Mahindra Ltd. losing 3.1 per cent each.Banks were also lower as some investors lost hope that the central bank would cut interest rates further anytime soon.The decline came as Indian Prime Minister Manmohan Singh took charge of the finance ministry. He replaced the current top finance official, who in turn replaced a chief security official, who resigned over the attacks.

KSE traded sloppy

KARACHI: Karachi Stock Exchange (KSE) today for the second consecutive day remained lackluster, however the volume of trade recorded one hundred percent increase.Trading today remained restrained since the very outset, while this trend persisted for the whole day, resulting in the KSE-100 index wrapping up unchanged at 9187. However, the volume of trade as compared yesterday jumped up by over one hundred percent, as 1,97,000 shares changed hands. Volume leader National Asset shares price up by paisa 4 pegged at paisa 44. Experts predicted that dormancy in the market could end after Eid ul Azha.