KARACHI - Bearish activity prevailed at the Karachi Stock Exchange on Wednesday caused by worst selling pressure in the global capital markets due to escalating political turmoil in Libya. The local equity market remained dull throughout the day despite strong financial announcements by the corporate sector. On Wednesday, the benchmark KSE-100 index managed to close at 11, 523.42 level, declining 125.96 points or 1.08 per cent over the last closing of 11,649.38 level on Tuesday. Market turnover down to 110.50 million shares from 102 million shares traded previously. KSE trading figures revealed that total market capitalisation accounted for Rs3, 118.19 billion or $36.50 billion whereas ready market value stood at Rs4.12 billion or $48.20 million. The KSE-30 index ended lower at 11,041.83 level, dropping 143.78 points or 1.28 per cent. KSE future volume recorded at 3.12 million shares and its value came at Rs308.87 million with a spread of 10.05 per cent. The market has been witnessing limited foreign interest as political uncertainty remains concern for the investors. Rising political instability has badly affected the investors sentiments despite rising global commodity prices and expectation of early resolution on circular debt issue in the energy sector of Pakistan, said Ahsan Mehanti, Director Arif Habib Investment Limited. Another analyst said marginal strength initially, mainly on technical grounds faced renewed sell-off from almost all sorts of participants in the market , disallowing even the long term investors to hold on to their investments and watch them loose value. According to the analyst, since the participants those allowed the index to attain and sustain the levels despite all odds are now in search of buyers, the majority stake holders mainly in the high priced stocks never looked back, even stocks from safer sectors and having decent dividend history along with consistent growth could not escape the wrath of sellers, since some corporate participants were attending redemption calls, some were busy minimising losses while some had to create liquidity either for paying losses, addressing margin calls or for honoring commitments. He assumed that the chain reaction of the recent decline, that may come in shape of defaults and margin calls, is likely to have deeper impact, incase the existing issues on economic, financial and diplomatic fronts sustain at alarming levels, thus leaving only the equity specific funds likely in search of secure and high dividend yielding stocks, while others are likely to stay comfortably placed in foreign currency, as a hedge incase the economic and financial matters reach the point of no-return. Rise in government borrowing and likely increase in local fuel prices will yet again make a case for likely increase in local interest rate, that impact may therefore be louder since it will carry the numbers deferred when status-quo stance was adopted during previous MP statement, he added.