22 September, 2008

Lack luster performance continued at the local brouse with another day of record low volumes. Investors have totally lost confidence in equity market. Dolor made another high against Rupee in intra day trading. where as CFS financing came down to 15.3 billion while annulazied rate surged to stagering 32.38% This huge cost of investement would further push leverage investors aside. foreigners in such  grim activity bought 11% and sold 0.01% out of total market activity whose value stood less than 300 million rupees.

Technically kse-100 is maintaining its strong downward bearish trend.

International commodity prices agin going up as oil touching 110 $ per barrel. while gold going north and stretching for 900$ per ounce. To increase liquidity central banks have allowed different investment banks to receive deposits and establish commercial banking units. This would open another front of war against deposits. Time would tell as how buying power returns.

Money market funds with MCB DCF and KASB LF posting 12.58% and 11.45%, respectively. Jul08 returns were even higher than the previous month. therefore put your money in money market fund for the time being.