They say stock markets universally reflect the state of the respective economies; likewise capital market in Pakistan has already started plummeting following the projections of 'huge, 'colossal, and 'massive impact of floods on the economy. Foreigners interest in Pakistani stocks remained there but of no use as the local players sold their portfolios in panic on Monday last. As soon as the trade opened the last week local players appeared to be net sellers. Nominal resistance on part of both the foreigners and local state-owned institutions took the market to the intra-day high, a little above the horizontal level. But panic selling proved to be name of the game during the opening session of the week that was. Eventually the market slipped down on a diagonal slide costing the benchmark around 300 points or nearly three percentiles of the index value. Second session however was marked as recovery day. A number of positive factors including recovery in the international stock markets, inflow of foreign exchange in terms of relief and rescue aid for the flood victims, and last but not the least oversold state of the blue chip stocks lured the investors on the day following the panic selling session. Therefore, the Karachi Stock Exchanges KSE-100 Index managed to recover almost half of what it had lost during the preceding session of the week under review. Midweek fell prey to the mixed trend amid divergent pull in the market. Foreign and local heavyweights chiefly the state-owned fund managers remained steadfast buyers while rest of the market down the line was altogether bearish. Massive forward thrust on part of the big-fish of the market enabled the Index to edge up minimally by 27 points or a quarter of a percentile despite negative undertones. Thursday went surprising as well as clearly bullish again as the Index surged by another 142 points or approximately 1.5 per cent. Pundits attributed this brief bull-run to the same positive factors that have enabled partial recovery earlier on the day-2 of the week under review. The brokers observed that the foreigners maintained their interest in Pakistans oil and gas, cement, and banking sectors despite panic selling by small investors. Technical correction finally crept in by the end of the week. Market fell below the psychological mark of 9,800 points to hit the intra-day low of 9,779.90 points on Friday last. But the bullish resistance saved it from closing the week in negative zone and the Index managed to edge up fractionally by mere 12 points before the traders called it a day. According to analysts, eventual impact of floods depends upon the manageability of the incumbent government and political maturity of the parties in opposition either inside or outside the Parliament. They believed that statements aimed at mere mudslinging on the government by reiterating its yet to be proved alleged corruption were to serve none of the flood victims. Similarly the Parliamentary Opposition would also have to do the legwork or at least research work to support to critical arguments it intends to make against the government. It is simply pity on us as a nation that we are up for score settling against each other when the massive floods having no parallel even on planet earth so far ruined one fifth of the country. If the so-called democratic politicians remain doing politics on floods, as they do not have permission by security agencies to reach out the people worst hit by the floods, opponent or undemocratic forces would find it as a blessing in disguise. That unwanted situation would not only be alarming for the economy but also be detrimental for the short-term capital market.