KARACHI: Karachi stocks ended almost 2.4 percent lower on Wednesday amid concerns that the killing of Osama bin Laden this week could lead to a delay in international aid, dealers said.
The Karachi Stock Exchange's benchmark 100-share index was 2.38 percent, or 284.84 points, lower at 11,672.05 on turnover of 89 million shares.
The KSE-index has lost 3.2 percent since the US Raid that killed bin Laden. The index gained about 28 percent in 2010.
"There is concern that there may be a delay of aid, especially from the International Monetary Fund (IMF), after news that visits of all missions have been cancelled," said Sajid Bhanji, director at brokers Arif Habib Ltd.
All missions from international financial institutions, including the IMF, the World Bank and the Asian Development Bank have cancelled visits to Pakistan, expecting a backlash following bin Laden's death, one local media report said.
The IMF declined to comment and no-one was available at Pakistan's Finance Ministry.
One foreign institution official, requesting anonymity, said that there were some delays in missions to Pakistan due to security issues.
In the currency market, the rupee ended weaker at 84.66/72 to the dollar, compared with the previous day's close of 84.28/35 amid increased demand for dollar for import payments, dealers said.
Dealers said the rupee was expected to remain stable in the short run following bin Laden's killing, but its medium- to long-term outlook depended on whether the United States would lose interest in the region, and what impact this would have on funding.
In the money market, overnight rates were flat at 11.10 percent, unchanged from Tuesday's close, and dealers said rates are likely to stay on the lower side amid increased liquidity in the interbank market.
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