Stocks end flat; rupee weakens

KARACHI: Pakistani stocks ended nearly flat on Monday as investors stayed on the sidelines following a fall in international markets and oil prices, dealers said.

Brent crude futures fell to around $104 a barrel on Monday ahead of a key vote in Greece to approve an unpopular austerity plan.

International oil prices have lost around 10 percent over the last three sessions since the International Energy Agency surprised the market with a 60 million barrels release to rein in prices.

"A fall in international commodities and equity markets kept local investors at a bay," said Samar Iqbal, a dealer at Topline Securities Ltd.

The Karachi Stock Exchange's benchmark 100-share index ended 0.07 percent, or 9.15 points, higher at 12,464.49.

Turnover rose to 52.79 million shares, compared with 51.73 million shares traded on Friday but still lower than the daily turnover which is usually on average around 100 million shares.

In the currency market, the rupee weakened to 85.97/86.03 to the dollar, from Friday's close of 85.88/92, due to increased dollar demand for import payments.

The rupee hit a record low of 86.50 last month, but dealers said the local unit is expected to stay largely stable in the coming days because of increased remittances from Pakistanis working abroad.

According to official data, remittances crossed $10 billion for the first time, hitting $10.1 billion in the first 11 months of the 2010/11 fiscal year, an increase of 25.20 percent compared with the same period last year.

In the money market, overnight rates fell to end at 11 percent, compared with Saturday's close of between 12.50 percent and 13.00 percent, amid increased liquidity in the interbank market.

Copyright Reuters, 2011