Karachi Stock Exchange ends higher, rupee firms

KARACHI: Karachi Stock Exchange (KSE) ended 0.75 percent higher on Tuesday led by buying in National Bank of Pakistan shares, but in thin volume as flash floods caused by heavy rain in the country's commercial capital kept investors away.

The KSE benchmark 100-share index closed 0.75 percent, or 83.79 points, higher at 11,264.43 on turnover of only 22 million shares.

"Despite the fact that volume remained low due to thin attendance, market gained due to investor interest in NBP, which closed at its upper limit," said Samar Iqbal, a dealer at Topline Securities Ltd.

The stock exchange authorities initially decided to close the market at 12:00 p.m., compared with its usual close at 3:30 p.m., on Tuesday but later reversed the decision after attendance slightly improved.

Floods triggered by monsoon rains crippled Karachi with few people able to make it to work or school, officials said.

The rupee firmed to close at 87.42/52 to the dollar, compared with Monday's close of 87.43/53 but dealers expect pressure on the rupee due to negative sentiment surrounding the country's economic outlook.

The rupee had some support from higher remittances from Pakistanis working overseas. According to official data, remittances rose 40.45 percent to $1.31 billion in August, compared with $933.06 million in the same period last year.

Copyright Reuters, 2011