Pakistan stocks close higher, rupee weakens, o/n rates rise

KARACHI: Pakistan's stock market closed higher on Monday after crossing the 17,500 mark for the first time, partially fueled by gains made in the energy and textile sector as they benefited from a weaker rupee.

The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.40 percent, or 70.60 points, higher at 17,548.54.

The gain was mainly led by the state-run Oil and Gas Development Company, which gained four rupees per share. Financial services company Jahangir Siddiqui Company saw renewed buying interest in anticipation of better earnings.

Although around 600 companies are listed on the exchange, less than ten percent of them see regular trading. Top companies include state-run oil and gas companies, banking companies and a few textile companies.

Both the oil and gas companies and the textile industry are benefiting from the rupee's depreciation against the dollar.

The energy companies post their profits in dollars, and textile exporters find the rupee's slide makes their wares more competitively priced internationally.

A lower than expected result of D.G. Khan Cement caused its share price to decline marginally, said dealer Samar Iqbal at Topline Securities.

Maple Leaf Cement rose 4.8 percent to 18.13 rupees. Pakistan Telecommunication Corporation fell 1.15 percent to 19.77 rupees.

In the currency market, the rupee ended weaker at 97.96/98.01 against the dollar, compared to Friday's close of 97.88/97.95.

Overnight rates in the money market fell to 9.75 percent compared to Thursday's close of 8.75 percent.