KARACHI Friday brought bad news for the local equity market as it not only suffered heavy losses but the KSE 100-share index also fell below 12,000-point level amidst heavy selling pressures in the scrips of the blue-chip companies by the investors across the board. The KSE 100-index closed at 11,943.34 points after losing 244.13 points. The index had ended at 12,187.47 on Thursday. Market volumes stood at 111.76 million shares. KSE market capitalization accounted for Rs3, 236.56 or $38.17 billion. Total ready market value amounted to Rs4.47 billion or $52.77 million. The KSE 30-index ended lower at 11,535.33 points mark, showing a decline of 246.60 points or 2.09 per cent over the last closing. KSE future volume came at 5.03 million shares, valuing at Rs489.42 million with spread of 13.60 per cent. Report on Moodys rating downgrade risk on Pakistan if it fails to address growing fiscal deficit affected the market sentiment despite healthy earning announcements in banking sector, according to market analyst. Another market expert said the built-in pressure due to inflated and matured levels of main board stocks, struggling to sustain, gloomy economic and financial horizon, certainly flared up on the rumour regarding rising threat on diplomatic ties with the US, massive low volume price erosion forced the equity market in deep red. He was of the view that the pressure on the market was widely attributed to the probable repercussions of the warning on international ratings, those are already sending alarming signals due to financial imbalance, and on financial standing of the country, not to forget, the huge foreign holding in the index heavy weight OGDC, in case the rumor materializes, thus leaving no option for the participants but to sell at available market rate, sell-off forced various stocks to hit bottom locks. However, caution accumulation in dividend yielding stocks and speculative stocks mainly on technical recover restricted the index from unprecedented decline, so the sentiment stayed negative. Update on the US reaction, update on leverage product and stance by various political parties regarding political set-up will certainly lead the momentum, however short-covering led recovery in high priced stocks along with various stocks facing the wrath of high and expensive debt along with rising input cost and declining export and local sales, will be an opportunity to sell. The increase in discounts in stocks offering consistent dividend yields can be looked for both trading and placement, uncertainty due to delay in reaction by US might however increase the on going currency hedge, thus building pressure on local currency, thus keeping chances of further decline at local equity market on higher side. APP from Islamabad adds: Islamabad Stock Exchange witnessed bearish trends here on Friday, as the IE-10 index was up by 61.18 points to close at 2,931.08. A total of 44,425 shares were traded, which were up by 27,002 shares when compared with previous days trading of 17,432 shares. Out of 140 companies share prices of 38 companies recorded increase, share prices of 102 companies registered decrease while that of zero company remained stable. The share prices of Siemens Pakistan Engineering increased by Rs. 26.01 per share, while the share prices of Unilever Pakistan decreased by Rs. 195.03. Laferge Pakistan, Byco Petroleum and Lotte Pakistan remained the top trading companies in Thursdays trading with 16,775, 8,000 and 5,000 respectively.