KARACHI - The Karachi stock market witnessed another lacklustre trading session on Tuesday as investors booked profits at higher levels following a slowdown in foreign inflows and the benchmark KSE 100-index lost 51 points and closed at 10,506, on turnover of 178 million shares, 15.9 per cent lower than Mondays. LOTPTA led the volumes with 44m shares, as investors booked profits after the share appreciated by 12.7pclast week. The stock closed at Rs11.95, down by 6.5%. News that Pakistan State Oil has received Rs12 billion on account of fuel supply, from Kapco (Rs3.5b), Wapda (Rs3bn), and Hubco (Rs5.4b), enabling it to clear its oil refineries dues and to import oil, failed to catch the investors attention and it closed 1.3pcdown with a volume of 0.5mn shares. The Asian Development Bank (ADB) in its report projected that Pakistans GDP growth in 2010 is to modestly improve to 3 percent backed by a recovery in the manufacturing sector. Inflation in FY10 projected to fall to 12 percent from its peak of the previous fiscal year is still high. Amidst fast burring out foreign fuel that ignited bullish momentum at the bourses, wary local investors remain reluctant to take charge. Although foreign investors continue to invest in the selective scrips, local investor eagerly await impetus for another round of rally. Under pressure opening led by sell-off in main board stocks further aggravated due to low turnover despite support by the low priced stocks. Top three volume leaders contributed almost 50pc to the total turnover and extension of correction in low priced stocks created unrest even amongst those, who were relaxed in previous session, and opted not to join the selling spree. The anticipation that the ongoing adjustment is a technical correction, and when over, consolidation may allow new highs has disallowed panic sell-off, which otherwise could have led to a major decline due to shallowness. Some issues such as high inflation, high government borrowings, irking circular debt, high commodity prices, likely adjustment due to implementation of CGT, and impact of new taxes on purchasing power of the local consumers is expected to restrict the upside. Hasnain Asghar Ali at Aziz Fida Hussein said, The anomaly that, despite substantial decline in commodity prices (food grains) in international markets high food inflation locally adds to the grievances besides adding to inflation (if the relief is passed on in the local economy, it will not only provide relief to the local consumers, impact on inflation will be substantial as it will not only neutralize the impact of high oil prices, the move will provide space for a reduction in interest rate).