Karachi Stock Exchange (KSE) Chaotic

On the news of "Emergency" being declared in Pakistan due to internal & external threats, KSE plunged more then 600 points (the highest downward fall) but market managed to take advantage of discounted prices when President Pervez Musharraf rejected calls to declare emergency.

• KSE 100 Index stood at 13181.94 down by -382.48 points.
  

• KSE 30 Index stood at 15848.71 down by -432.60 points.
  

• Market Capitalization fall by Rs. 98.275 billion.

• BSE Sensex closed at 15100.15 down by -207.83 points

• FTSE 100 Index stood at 6271.20 down by -122.70 points
  

• DJIA stood at 13270.68 down by -387.18 points
  

• NASDAQ stood at 2556.49 down by -56.49 points
  

• S & P 500 stood at 1453.09 down by -44.40

• NIKKEI stood at 17170.60 up by +141.32
  

The forth coming week seems to favor Bears at Karachi Stock Exchange with the cloud of uncertainty in the political environment in Pakistan. I would like to advice that don't make abrupt decisions in panic due to market volatility.

If you have already taken position,

1. you should wait or try to average your positions.
2. you should sell out positions as prices go up and regain your positions as market further corrects itself.

For those who have squared there position either at loss or at gain, should wait for further correction in the market and should pickup positions where values seem attractive and correction sentiment seems over.

Recommendations: for coming week

Sell on Strength: PSO, PPL, POL, APL, , OGDC, MCB, NBP, ABL
Buy on Weakness: LUCK, PTC, UBL, IGIIL, NRL

US Stocks also tumbled on Thursday, with the Dow and S&P down nearly 3 percent, after a French bank froze three funds that invested in U.S. subprime mortgages, prompting central banks to take steps to calm investors. Evidence the U.S. mortgage market crisis was having a global impact and spreading to other markets hammered financial stocks.

Major central banks stepped in to calm the financial markets as banks scrambled for cash, with the European Central Bank injecting a record amount of liquidity to prevent the financial system from seizing up. The ECB pumped 94.8 billion euros ($130 billion) of emergency liquidity into Europe's money markets, while the Bank of Canada said it injected C$1.455 billion ($1.37 billion) into the markets to help with liquidity shortfalls. The U.S. Treasury said it was monitoring financial markets and remains vigilant.