KSE closed lower to fall in oil prices

KARACHI: Karachi stocks exchange closed lower on Monday following a fall in international oil prices but losses were capped as investors bought shares in fertiliser firms on hopes of strong corporate results, dealers said.

The KSE benchmark 100-share index fell 0.46 percent, or 53.72 points, to end at 11,708.25 on turnover of 43.2 million shares.

"With a decline in international oil prices, some profit-taking was seen in the energy sector but fertiliser stocks remained in the limelight," said Samar Iqbal, a dealer at Topline Securities Ltd.

Fatima Fertiliser company closed the day up 0.3 percent and Fauji Bin Qasam rose 0.4 percent.

Dealers said bargain hunters also moved in on hopes of an interest rate cut by the State Bank of Pakistan on Saturday.

In July, the central bank cut the key policy rate by 50 basis points to 13.5 percent.

In the currency market, the rupee weakened to 87.45/50 to the dollar compared with Friday's close of 87.40/50 amid increased import payments. The rupee hit a record low of 87.92 to the dollar last month.

A decision by the government not to seek a new International Monetary Fund loan and speculation of a rate cut would likely add to the pressure on the rupee.

In the money market, overnight rates were flat at the top level of 13.40 percent, unchanged from Saturday's close amid tight liquidity in the interbank market.

Copyright Reuters, 2011