KARACHI - After declining by 0.5 per cent last week, the stock market started the new week on a dismal note as well and the stocks ended lower on Monday as investors booked profits at higher levels. The Karachi Stock Exchanges benchmark 100-share index, which opened in the green zone with a gain of 21.72 points, fell 0.48 percent, or 50.66 points, to end at 10,556.37. Overall activity was dull, as only 125m shares were traded. However, activity was seen in Engro and AHSL amid anticipation of higher earning for the period ended March 31, 2010. The companies are due to announce their results this week. Both the stocks outperformed the overall market, with 2.6m and 5.6mn shares traded. A few important results were announced, including NML, AICL, JSCL and ANL. NML posted an EPS of Rs5.15 per share for the period ended March 31, 2010. The results were above analyst expectations and therefore seen strength in stock price. On the contrary, a major sell-off was seen in the shares of Adamjee Insurance after its result announcement, as the company posted below expected earnings of Rs2.2 per share. The KSE 30-index closed at 10660.71 with a loss of 66.09 points. The KMI 30-index closed at 15828.85 with a loss of 97.30 points. All shares index closed at 7444.59 with a loss of 34.22 points. Trading activity was minimal as compared to the last trading session as the ready market volume stood at 125.453m as compared to last trading sessions 153.863m. Future market volume however stood at 3.328m shares as compared to 1.341m shares of last trading session. Market capitalization stood over Rs 2.993tr, as total trades decreased to 67,417 as compared to last trading sessions 67,697, while 188 companies advanced, 226 declined and 17 remained unchanged. Highest volumes were witnessed in TRG at 15.403m, closed at Rs6.32 with a gain of Re0.01, followed by ANL at 6.378m, closed at Rs15.30 with a loss of Re0.52, and JSCL at 6.271m, closed at Rs21.16 with a loss of Re0.62. Ahsan Mehanti at Shehzad Chamdia Securities said, 'Uncertainty in global capital markets, concerns over circular debt in energy sector, limited foreign interest and lower-than-expected result announcements in value stocks played a catalyst role in negative activity in the quarter-end result announcement session. Some news that affected the trading activities at the market were: GDP target lowered to three percent; CPI inflation to be 12 percent; Al Baraka, and EGIBL to merge in Pakistan; IMF-WB meeting starts. High valuations and uncertain environment (impact of CGT, high inflation, rising government borrowing and tight monetary policy) disallowed any major activity by the local participants, hand shift and placement led turnover in low priced stocks did allow the turnover an increase value of traded shares declined substantially. Elimination of CFS MKII have severely impacted the market depth as the step as expected have forced the leverage participants to trade with reduced capacity in main board stocks, seems the major reason of abnormal turnover in low priced stocks, the development have forced even the IPOs to trade below par. Hasnain Asghar Ali, a market expert, said, 'Re-introduction of CFS MKII with couple of amendments may however change the sentiment and the impact, abnormal declines in the stocks trading at low multiples and offering double-digit yields needs to be capitalized, while expensive stocks should be avoided.