KARACHI - Moody's verdict of downgrading of Pakistan's credit rating turned the ailing stock market further gloomy, leading to more selling pressure. The continued recession in the stock market led the board of KSE to prohibit on short selling in ready market and also prohibit blank selling in deliverable futures contract for one month. The KSE-100 index opened in the red zone with 1.61 points decline and at the end of day trading the index concluded at 9,199 points, reflecting a decline of 0.71 points. Analysts said that selling pressure was continued on the stock market as the Moody's cut its rating outlook for Pakistan's government bonds B2 to negative from stable because of  growing signs of economic drawbacks, multiplied due to depleting foreign reserves, dwindling value of rupee against dollar. However, brokers have rejected the news regarding the set up of fresh market fund of Rs20 billion by the State Bank of Pakistan because they were not on a position to believe in any kind of news or commitments made by any elite official of the government to launch such kind of fund, giving the reason for not believing they said that they had been deceived several times by government senior officials by promising to launch such type of funds. "Now we only believe in practical measures rather than mere promises of the elite government officials," brokers said The free float KSE 30-share index closed at 10,064 with a gain of 0.42 points. Analysts pointed out that the agency (Moody) had also identified other risk that the economy of the country has been facing due to burgeoning political crisis, rising religious extremism and high inflation that could hold up reforms such as liberalization, regulation and privatization. "Investors are still treading on uncertain ground about the future market outlook. They just have to move on a daily basis," analysts said This signals that the liquidity-starved market needs substantial cash injection and confidence-building measures as well as return of sanity to the political front to reassure the investor, analyst added. Analysts Hasnain Asghar Ali said that Moody's outlook notification of country's currency and bond rating from neutral to negative although yet again failed to have a reaction on the local bourses, but the step will mount pressure on the prospective investors seeking an opportunity for investments in the economy. Hasnain Asghar Ali commenting on banning short selling said that it would allow a slight and one time increase in the turnover, thus allowing the index to increase its trading band to 11 points from almost nil, with ban on short selling, running a "future counter" is certainly meaningless, it is only facilitating the buyers a month's period for payment, infact if the outstanding amount in "forward" stays unsettled entire amount is given a safe transformation to T+2 through eligibility in MKII thus resulting in aggravation of pressure, Ali added. Hasnain said that the proposals discussed in the   meeting of the SBP, Finance ministry and KSE biggies although can stabilize the market once the band wagon kick starts but in an individual capacity the proposals do not have the capacity to avert massive erosion if the bottom lock is removed, there are various other proposals if implemented can digest the float currently being offered at bottom levels. On Tuesday, trading activity was better against the last trading session as the Ready market volume stood at 5.934mn as compared to last trading session 3.524mn. Market Capitalization ended at Rs.2.862 trillion. While a total of 120 scrips were traded today, out of 20 advanced, 12 declined and 88 remained unchanged.  MCB topped the volume list with 2.782mn shared; its shares remained unchanged at Rs.235.75 followed by ENGRO at 0.541mn shares, closing at Rs. 180.67 with a gain of 0.23 paisa and HBL at 0.252mn shared, its shares also remained unchanged at Rs.0.252.