KARACHI - Profit-taking was witnessed at the market on the last day of calendar year as benchmark KSE 100-index declined by 121.03 points or 1.3 percent to close at 9,387 level with volumes of 140 million shares. Moodys report stated a negative medium-term outlook for banking sector, triggered off a market wide sell-off, while the major participators in todays sell-off were institutions, as they booked their profits on the years last trading day. The local investors also preferred to stay cautious ahead of tomorrow strike. However, in calendar year 2009 nevertheless the KSE 100-index posted handsome returns of 60 percent. The KSE 100-index closed at 9386.92 against yesterdays 9507.95 after losing 121.03 points, while KSE 30-index closed at 9849.92 against yesterdays 10001.72 after losing 151.80 points. All shares index closed at 6665.55 against yesterdays 6743.40 after losing 77.85 points. Market capitalisation stands over Rs 2.705tr, while 154 companies advanced, 223 declined and 25 remained unchanged. The companies that reflected highest increase in their rates were Nestle Pak with the gain of Rs 41.96/share to close at Rs 1245.96, and Bata (Pak) gained Rs 29/share to close at Rs 979. On the other hand, Exide Pak lost Rs 6.25/share by closing at Rs 172.75 and Unilever Pakistan with the loss of Rs 6.14/share closed at Rs 2300 while both the companies witnessed highest decrease in their rates. It has been observed that after a traumatic 2008 where the KSE plunged 58 percent, the market rebounded with a vengeance to close at 9,387 level, up 60 percent. This was markets finest performance since 2003, propelling the market capitalisation to Rs2,706b (US$32b). Effective IMF led structural reforms and the resolution of number of political issues were the key drivers behind the market recovery. Improving economic numbers were also acknowledged by international rating agencies as S&P upgraded Pakistan by one notch to 'B- and Moodys enhanced its outlook to 'Stable. Market rallied in two major bursts as reinstatement of the Chief Justice in March geared up local investor confidence during mid March-April (up 33 percent) and re-entry into the MSCI Frontier Market Index ignited foreigners interest during Jul-Sep (31 percent return). On the flip side, Pakistan under-performed its regional peers which posted an average return of 77 percent, hence market trades at an average PE discount of 39 percent to regional peers at year end. Moreover, average daily volumes remained low throughout, primarily due to the non-availability of leverage products. Though the markets recovery was broad based, E&P and fertilizer in particular, performed commendably while cement and insurance were major losers amongst others.