KARACHI - Karachi Stock Exchange (KSE) showed lacklustre performance during the outgoing week, as the benchmark KSE-100 index plunged to a 26 month low at 8,999 points on Wednesday, after June 15, 2006, which has prompted the KSE board to set a floor based on the closing level of the day at 9,144 points. On weekly basis the KSE-100 index took a dive of 785 points or 8 per cent, to close at 9,208 point level, amid split appeared in the ruling coalition coupled with economic woes. Analysts attributed the foreign selling pressure and worsening Balance of Payment (BOP) situation that kept pressure on the rupee to the decline of 8 per cent during the outgoing week. The overall market capitalization during the outgoing week stood at US$38bn down 40 per cent in terms of rupee and 50 per cent in dollar terms from its peak of US$75bn as of April 18, 2008. Volumes remained low and declined even further post regulatory intervention averaging 17.4mn shares a day (US$27mn) during outgoing week against last 12 month average of 189.5mn shares (US$322mn). CFS investment stood at 18.4bn as of Thursday, down 13 on week on week basis. Similarly, CFS rate stood 16.6 per cent versus 14.5 per cent previously. Analyst said that political uncertainty resurfaced with the departure of PML-N from the ruling coalition on Monday, which kept the investors on tenterhook. Analysts commenting on the new regulatory changes said that such unusual steps have always sent a bad message to the foreign investors, and at the time when the foreign investors were already away from the equity markets such moves may further shatter their confidence. Brokers said that the KSE board had taken right decision to freeze the shares prices, which has given a breathing space for the battered investors and save many members from default. Brokers said that though the decision of the regulators has enormously declined the levels of volumes but it was better to choose minor diseases than the death. Brokers said that as many as 50 members of the stock market have already closed down their businesses due to the continued recession and downturn, which has diminished their buying capacity, thus the only option was to halt the business instead of facing further losses. During the outgoing week the government, in an attempt to control the external deficit, imposed duty ranging 15-50 per cent on import of luxury items and are considering sale of strategic entities The country has also been going through the prolong load shedding, which has not only disturbed the people of the country but made a negative impact on the business production. Analysts said that Political concerns remain intact till the presidential elections. While there is no signs of respite in the economic side in coming days.