KARACHI - The Karachi stock market closed down Thursday as rising power and gas shortages along with poor security situation in the city reduced investor confidence. The Karachi Stock Exchange (KSE) 100-share index declined by 82.18 points or 0.70 per cent to 11,652.54, compared to the previous level of 11,734.72 on the market turnover of 89.03 million shares. KSE market capitalisation stood at Rs3, 106.93 billion or 36.86 billion while total trading value recorded at Rs2.80 billion or $33.17 million. The KSE-30 share index closed at 11,364.21 level, down 74.12 points or 0.65 per cent yesterday. The future volumes came at Rs3.07 million shares and its value was at Rs369.99 million with 9.59 per cent future spread. Bearish activity witnessed in scrips across the board on limited institutional and foreign interest in the earning announcements session. Concerns for Pak-US ties after drone attacks in Pakistan, rising security concerns in the city played a catalyst role in negative close at KSE despite investor support in cement, fertilizer stocks on rising local commodity prices, said Ahsan Mehanti, Director Arif Habib Investments. Rumor led speculative activity in frontline cement stocks and renewed buying interest fertilizer stocks of Fauji group, besides inviting volumes allowed the benchmark to register substantial gains during early trading hours. However, absence of follow-up support and sell-off in the high priced stocks disallowed the benchmark to sustain positive posture, said Hasnain Asghar Ali, an analyst at Aziz Fida & Co. The bleak economic, financial and social environment, along with capital gain tax (CGT) has certainly reduced the number of participants active at the local equity markets. As the government is trying to resolve various financial issues, mainly circular debt, by either issuing term finance certificate (TFCs) and convertible bonds for reserve starved OGDC or through some other exercise, it is essential to change the mode of CGT to allow the local bourse to perform at its potential, he said. It is a strong conviction that despite all the odds on macro horizon and potential of the local equities is much higher mainly on traded volumes and in some on valuations, despite reduced activity by the local financial groups, caution, however, stays the call, while sell stays the stance in the stocks trading at high multiples and having high impact cost, along with the stocks, dependent on local economy for increase in revenues, he added.