KARACHI: Karachi Stock Exchange (KSE) ended more than 1.7 percent lower on Tuesday on fears of foreign selling as world stocks fell to a near three month low, dealers said.
Fears of a potential radiation disaster in Japan hammered world stocks to their lowest point in nearly three months on Tuesday and fuelled a 2 percent fall in oil prices, as investors fled for the safety of US and German government bonds.
KSE benchmark 100-share index ended 1.79 percent, or 216.14 points, lower at 11,829.24 points on turnover of 135 million shares.
"The high likelihood of foreign selling, given the recent global sell off, added to the negative sentiment in the market," said Asad Iqbal, chief investment officer at Faysal Asset Management Ltd.
According to official data, foreign investors have so far sold shares worth a net $1.6 million on Friday and Monday.
In the currency market, the rupee ended at 85.42/45 to the dollar, compared with Monday's close of 85.49/54, because of a fall in international oil prices. Dealers said it was likely to stabilise in the coming days because of remittances.
Remittances rose by 20 percent to $6.96 billion in the first eight months of the 2010/11 fiscal year, compared to the same period the previous year.
In the money market, overnight rates were flat at between 13 percent and 13.50 percent, unchanged from Monday's close. Dealers were awaiting the Pakistan Investment Bond auction scheduled for Wednesday in which they expect a decrease in the cut-off yields.
Dealers said there were scheduled outflows amounting to 63 billion rupees ($737 million) on Thursday.
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