KARACHI: Karachi Stock Exchange (KSE) rose on Monday as investors bought oil stocks after a rebound in international oil prices but dealers said the market is likely to remain range-bound until the announcement of the budget, dealers said.
The budget for the 2011/12 fiscal year (July-June) is due to be announced on May 28, according to finance officials.
KSE benchmark 100-share index ended 0.44 percent, or 52.72 points, higher at 11,932.68 on turnover of 78.65 million shares.
"There was some activity in oil shares but largely investors are likely to be cautious until the budget is unveiled," said Sajid Bhanji, director at brokers Arif Habib Ltd.
ICE Brent crude futures were up $4 to $113.13 a barrel on Monday as the dollar weakened while the euro strengthened and investors and traders went hunting for bargains after last week's sell-off.
At 1127 GMT, the front month contract was up $4.02 to $113.15 a barrel. US crude futures were up $3.43 to $100.61 a barrel at the same time.
Dealers said investors are also cautious ahead of a meeting this week between International Monetary Fund (IMF) and Pakistani officials to discuss the budget and possible release of the next tranche of an $11 billion IMF loan.
In the currency market, the rupee ended weaker at 84.85/95 to the dollar, compared with Friday's close of 84.60/80 following an increase in global oil prices, dealers said.
In the money market, overnight rates were almost flat at between 11 percent and 11.30 percent, compared with Saturday's close of 11.50 percent and dealers said rates were likely to be on the lower side amid increased liquidity in the interbank market.
Dealers said the next scheduled inflows, amounting to 32 billion rupees ($377.8 million), are due on Tuesday.
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