Karachi Stock Exchange index ended lower, rupee firms

KARACHI: Karachi Stock Exchange (KSE) ended lower on Tuesday, as investors sold shares on higher levels to book profits, especially in the fertiliser sector, dealers said.

The KSE benchmark 100-share index ended 0.89 percent, or 106.16 points, lower at 11,762.72. The KSE-index gained 2.66 percent on Monday.

Volume fell to 84.40 million shares compared with 101.13 million shares traded on Monday.

"Profit taking in selected fertilizer stocks created a downward correction in the market," said Samar Iqbal, a dealer at Topline Securities.

Fatima Fertiliser ended 4.6 percent lower at 25.30 rupees, while Fauji Fertiliser shed 2.28 percent to end at 189 rupees.

In the currency market, the rupee firmed to 86.00/06 to the dollar from 86.48/53 on Monday, amid soft dollar demand from importers.

Dealers said healthy remittances from Pakistanis living abroad were also supporting the rupee, but cautioned that a widening current account deficit means the local currency could experience downward pressure in the days ahead.

Pakistan's current account deficit surged to a provisional $908 million in September, compared with a deficit of $201 million in the previous month.

The deficit for the July-September quarter was a provisional $1.209 billion, compared with $597 million in the same period last year, according to data from the State Bank of Pakistan.

In the money market, overnight rates ended flat at 11.75 percent, and dealers said the market was now looking to Wednesday's fortnightly treasury bills auction, in which they expect a decline in the cut-off yields.

Copyright Reuters, 2011