KSE 100-index ends up, rupee weakens

KARACHI: Karachi Stock Exchange (KSE) rose on Wednesday, led by the fertiliser sector on hopes of strong corporate results, dealers said.

The KSE benchmark 100-share index ended 0.82 percent, or 94.45 points, higher to end at 11,625.69 on turnover of 87.38 million shares.

"Fertiliser sector led the rally in anticipation of better results for July-September quarter," said Samar Iqbal, dealer at Topline Securities Ltd.

Fatima Fertiliser, the volume leader, rose 4.5 percent to end at 18.59 rupees and Fauji Bin Qasim gained 1.21 percent to end at 57.65 rupees.

In the currency market, the rupee weakened to 87.42/45 to the dollar compared with Tuesday's close of 87.38/43 amid increased import payments, and dealers expect the local unit to remain under pressure as payments are typically higher during the end of the month.

The rupee hit a record low of 87.92 to the dollar this month.

A decision by the government not to seek a new loan from the International Monetary Fund (IMF) would likely add to the pressure on the Pakistani rupee.

However in the open market, the rupee was traded at 88.10/30 to the dollar after hitting a record low of 89.90/90.10 on Monday.

"SBP's (State Bank of Pakistan) calibrated intervention and reassurance to provide more foreign currency cash liquidity to exchange companies strengthens Pak Rupee in Kerb market," the bank said on Wednesday.

In the money market, overnight rates were flat at the top level of 13.40 percent, unchanged from Tuesday's close amid tight liquidity in the interbank market.

Copyright Reuters, 2011