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Pakistani stocks, o/n rates end down; rupee firms
Reuters - Saturday, February 19
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KARACHI, Feb 18 - Pakistani stocks ended down on Friday over concerns of escalating tensions between Pakistan and the United States, but dealers said some buying was seen at textile company Nishat Mills <NISM.KA> after it announced healthy results.
A Pakistani man is demanding the arrest of a second U.S. embassy employee in Pakistan, his lawyer said on Friday, adding fuel to an incident that has severely strained ties between Washington and Islamabad. [ID:nSGE71H02B]
The move comes as U.S. officials pressure Pakistan to release Raymond Davis, a U.S. consulate employee who is being held in prison after shooting and killing two Pakistanis in the city of Lahore last month, in what he said was an attempted robbery.
The Karachi Stock Exchange's benchmark 100-share index <.KSE> ended 0.17 percent, or 20.62 points, lower at 12,041.15.
Turnover rose to 70.36 million shares from 60.38 million shares, a four month low, traded on Thursday.
"Bearish activity continued with thin volume on investor concerns over the Raymond Davis case," said Ahsan Mehanti, director at Arif Habib Investments Ltd.
Dealers said investors accumulated shares of Nishat Mills, volume leader, at lower levels after its announced strong corporate results. It ended 2.56 percent higher at 62.90 rupees.
The rupee <PKR=> firmed on Friday amid a lack of import payments and dealers said the rupee is expected to move in a narrow band in the short term.
The rupee closed at 85.37/44 to the dollar, up from Thursday's close of 85.45/50.
It closed at 84.78/83 to the dollar last week, the highest close against the dollar since May 25, 2010.
Officials and dealers said a record inflow of remittances, strong foreign exchange reserves positions, healthy exports and a current account surplus were behind the rupee's gain in value in recent days.
Remittances by overseas Pakistanis were recorded at $6.12 billion during the first seven months of the fiscal year 2010/11, up 17.70 percent from the same period last year, according to data from the State Bank of Pakistan.
In the money market, overnight rates fell to 11.50 percent, compared with Thursday's close of 13.90 percent because of increased liquidity in the interbank market. (For more Reuters coverage of Pakistan, see: http://www.reuters.com/places/pakistan)
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