KARACHI - Bearish activity witnessed at the local equity market on Tuesday as the investors were waiting for the outcome of meeting between government coalition partner MQM and President on renewed political concerns in Sindh. The KSE-100 index declined by 34.54 points (0.29 per cent) to 11,940.01from the last closing of 11,974.55 while the KSE-30 index fell 49.22 points or 0.42 per cent to 11,641.19. Market volume sharply decreased to 54.22 million shares while KSE market capitalization amounted to Rs3, 217.02 billion or $37.67 billion. Total ready volume stood at Rs1.91 billion or$22.38 million. KSE future volume accounted for 2.65 million shares and its value was at Rs340.69 million with 6.99 per cent spread. According to an analyst, bearish sentiments prevailed at the market throughout the entire session despite of the fact that the launch of MTS leverage product is scheduler for next week. In addition, renewed foreign interest in blue-chip scrips, higher global commodity prices and international oil prices did not push the index upward. Low volume price erosion struck the local bourse upon opening, wherein high priced stocks stayed the target, and the benchmark wiped of more then 100 points, with a meager volume of 6.5 million shares, during early trade, before lackluster and stagnation surface, said another analyst. While the local participants awaited outcome of the meeting amongst the major political parties, others were seriously forced to panic mainly on cold ties with US and deteriorating financial and economic situation, value buying in selective stocks did restrict the decline in the benchmark, low volume and absence of buyers on intervals kept, low volume price erosion a prominent feature, he said. The divide over future market trend amid gloomy environment, despite positive developments regarding availability of financing channel, amongst the local financial groups and resident players had clearly confused others, those include corporate participants, while volatility in Arab region and issue of the US citizen kept the local bourse exposed to the sell-off by the off-shore participants, including expatriates, thus forcing the high net worth and various resident participants to stay in hibernation as depicted by extreme decline in turnover that barely managed 50 million mark, he added. However, reduction of political temperature may allow the local participants to re-enter the local equity market and accumulate front line stocks offering consistent dividend yields and managing to sustain growth despite gloomy economic and financial situation, healthy response to the leverage product will then on re invite wide spread participants, according to analyst.