KSE fall 2.6pc following global markets

KARACHI: Karachi stocks Exchange (KSE) fell more than 2.6 percent in early trade on Monday following the global sell-off after ratings agency Standard & Poor's downgraded the US credit ratings, dealers said.

The Karachi Stock Exchange's benchmark 100-share index was trading 2.63 percent, or 299.59 points, lower at 11,075.50 on turnover of 19.85 million shares by 9:49 a.m.

"As expected, we saw our local bourse take cue from the regional markets following the downgrade by S&P," said Sajid Bhanji, director at Arif Habib Ltd.

"However there are stocks, especially in the energy and fertiliser sectors, which are offering some great valuations at current levels."

The KSE-index closed on more than a four month low on Friday.

Global shares tumbled on Monday despite efforts by global policymakers to stem a collapse in investor confidence after the US credit rating downgrade, but the euro jumped on hopes the European Central Bank will act to stop Europe's debt crisis from engulfing Italy and Spain.

Major Asian equity markets fell by 2-4 percent, with South Korea slumping more than 7 percent at one point.

Copyright Reuters, 2011