KSE index ends on 6-week low, rupee firms

KARACHI : Karachi Stock Exchange (KSE) ended at a six-week low on Thursday on concerns over the country's economic sta

Published October 27, 2011 Updated October 27, 2011 02:55pm

2 min

By Imad Uddin

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The KSE benchmark 100-share index fell 0.91 percent, or 103.73 points, to end at 11,283.49, its lowest close since September 13.

Volume was 69.76 million shares compared with 80.94 million shares traded on Wednesday.

"Stocks finished lower after bearish sentiment prevailed at the KSE on rising economic concerns as investors fear a widening trade deficit and higher inflation indications by IMF," said Ahsan Mehanti, Director at Arif Habib Investments Ltd.

The IMF expects Pakistan's 2011/12 fiscal deficit to widen to 5.3 percent of gross domestic product, overshooting the government's target of 4 percent.

In a Regional Economic Outlook report released on Wednesday, the IMF also projected gross domestic product growth of 3.8 percent in the fiscal year to June, compared with the government's target of 4.2 percent.

In the currency market, the rupee firmed to 86.74/79 to the dollar, compared with Wednesday's close of 86.80/85, amid a lack of import payments.

The rupee had firmed in the previous trading session on healthy remittances from Pakistanis living abroad, but dealers cautioned a widening current account deficit means that the local currency could experience downward pressure in days ahead.

Pakistan's current account deficit surged to a provisional $908 million in September, compared with a deficit of $201 million in the previous month.

For the July-September quarter, the deficit was a provisional $1.209 billion, compared with $597 million in the same period last year, according to data from the State Bank of Pakistan.

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