KSE end up, rupee firms, o/n rates flat

KARACHI: Karachi Stock Exchange (KSE) ended 2.5 percent higher on Wednesday, recovering from a near nine-month low the previous day as world stocks rebounded, led by the fertiliser sector.

KSE benchmark 100-share index closed 2.50 percent, or 276.37 points, higher at 11,311.29 points on turnover of 67.65 million shares.

"Following a strong recovery in the regional markets, Karachi's stocks also posted a handsome recovery," said Samar Iqbal, a dealer at Topline Securities Ltd.

World shares clawed back more ground on Wednesday as investors, rattled by a run of heavy losses, took comfort from the Federal Reserve's pledge to keep interest rates near zero for two more years.

Dealers said investors accumulated fertiliser shares on hopes of strong corporate profits. Engro Corp which is due to announce its results on Friday, ended 4.99 percent higher at 129.76 rupees.

In the currency market, the rupee ended firmer at 86.32/37 to the dollar, compared with Tuesday's close of 86.41/44 because of higher remittances from overseas Pakistanis.

According to the official data, remittances rose 38.57 percent to $1.1 billion in the first month of 2011/12 fiscal year, compared with $791.18 million in the same period last year.

In the money market, overnight rates ended at 10.60 percent, compared with Tuesday's close of 10.50 percent. Dealers said they were awaiting the result of the treasury bill auction, in which they expect a cut in the cut-off yields.

Copyright Reuters, 2011