Stocks end up; rupee firms; o/n rates unchanged

KARACHI: Stocks ended up on Wednesday, after falling to a near 10-month low the previous day, as investors accumulated shares on attractive prices along with a recovery in world stocks, dealers said.

The KSE benchmark 100-share index closed 0.91 percent, or 98.82 points, higher at 10,941.08.

Volume was at 40 million shares, compared with 22.40 million shares traded on Tuesday.

"The local bourse recovered as world markets bounced back," said Sajid Bhanji, director at Arif Habib Ltd.

"But volume will be on the lower side on security concerns and also due to the long weekend coming up."

More than a 100 people have been killed in Karachi, the country's financial hub, since Wednesday in political, ethnic and gang violence that has intensified in recent months, police officials said.

In the currency market, the rupee closed firmer at 86.73/78 to the dollar, compared with the previous day's close of 86.90/96 amid lack of import payments.

The rupee made a record low at 87.10 on Monday.

Dealers said they expect the currency to remain under pressure, as dollar payments are typically higher in July and August because of stronger oil demand and debt payments.

Though some support could come from higher remittances from overseas Pakistanis as according to 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 flat at the top level of 13.40 percent, unchanged from Tuesday's close and dealers said they were awaiting the result for the treasury bill auction in which they expect the cut-off yields to remain largely unchanged.

Copyright Reuters, 2011