KSE index ends lower, rupee weakens

KARACHI: Karachi Stock Exchange (KSE) ended lower on Tuesday, taking a cue from world markets, but losses were contained as interest in the fertiliser sector remained strong on hopes of strong corporate results, dealers said.

Companies are due to announce results for the quarter ended September 30 in the coming days.

The KSE benchmark 100-share index ended 0.53 percent, or 63.36 points, lower at 11,912.19.

Volume was 81.15 million shares compared with 79.41 million shares traded on Monday.

"Market remained under pressure due to declining global markets and an expected outflow of $60 million due to the sale of shares by a foreign company," said Mohammed Sohail, chief executive at Topline Securities Ltd.

World stocks stumbled from the previous day's 1-1/2 month high on Tuesday and government bonds rose as slower-than-expected Chinese growth and a warning on France's triple-A sovereign credit rating prompted investors to cut risks.

Fatima Fertiliser, the volume leader, rose 2.43 percent to end at 24.47 rupees, while Fauji Fertiliser ended 2.17 percent higher at 198.05 rupees.

In the currency market, the rupee weakened to 86.67/72 to the dollar compared with Monday's close of 86.54/59 because of an increase in the import payments.

The rupee firmed in the previous trading sessions on increased remittances from Pakistanis living abroad.

According to official data, remittances rose 25 percent to $3.3 billion in the first three months of the 2011/12 fiscal year (July-June), compared with $2.65 billion in the same period last year.

However remittances fell to $890 million in September, compared with $922 million received in September last year.

Copyright Reuters, 2011