Karachi Stock Exchange ended down, rupee weakens

KARACHI: Karachi Stock Exchange (KSE) ended lower on Monday as cautious investors sold shares at higher levels to book profits while institutions stayed on the sidelines, dealers said.

KSE benchmark 100-share index closed 0.85 percent, or 95.94 points, lower at 11,166.10 points.

Volume fell to 25.9 million shares, compared with 53.87 million shares traded on Friday.

"Another dull session was witnessed in the Karachi Stock Exchange where volume in rupee terms hit its lowest in eight sessions, as only 1.3 billion Pakistani rupees ($15 million) worth of shares were traded," said Samar Iqbal, a dealer at Topline Securities Ltd.

In the currency market, the rupee ended weaker at 86.60/65 to the dollar, compared with Friday's close of 86.39/45, amid higher import payments following a rise in international oil prices.

The rupee made a record low at 86.83 this month but dealers said the local unit's sharp fall is likely to be prevented by a rise in remittances from overseas Pakistanis.

According to the official data, remittances rose 38.57 percent to $1.1 billion in the first month of 2011/12 fiscal year, compared with $791.18 million in the same period last year.

In the money market, overnight rates ended at 13.25 percent, compared with Saturday's close of 13.40 percent after the State Bank of Pakistan injected government paper worth 30.05 billion Pakistani rupees ($347.72 million).

Copyright Reuters, 2011