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Pakistani stocks down; rupee weakens; o/n rates up
 
 
  
 
 Reuters - Friday, January 29
 
 
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KARACHI, Jan 28 - Pakistani stocks ended lower on Thursday because of a fall in international oil prices and political uncertainity, dealers said.
 
The Karachi Stock Exchange benchmark 100-share index <.KSE> ended 0.25 percent, or 23.74 points, lower at 9,579.81 on turnover of 140.43 million shares. The KSE-index has shed 2 percent this week.
 
"The bearish trend continued to dominate due to political uncertainity and the continuous fall in oil prices," said Farhan Seth, an analyst at Topline Securities.
 
The energy sector is the heaviest weighted sector on the KSE.
 
International oil prices briefly touched $72.65 on Wednesday the lowest intra day price level since Dec. 14. However, it rose above $74 on Thursday. [ID:nSGE60R06J]
 
Dealers said investors have been cautious as political uncertainty has increased since last month then the Supreme Court rejected an amnesty that had protected President Asif Ali Zardari and some of his top aides from old corruption charges.
 
In the money market, overnight call rates ended at 12.40 percent, compared with Wednesday's close of 12.25 percent to 12.40 percent and dealers expect rates to hover around current levels in the run-up to a monetary policy announcement.
 
Dealers said there was an inflow of 23 billion rupees against an outflow of about 32 billion rupees. The next outflow is scheduled for Saturday of 94 billion rupees.
 
Monetary policy for February and March will be announced on Saturday and analysts expect no change in the key policy rate which is at 12.5 percent. [ID:nSGE60P03L]
 
In the currency market, the rupee ended weaker at 84.60/70 to the dollar compared with Wednesday's close of 84.53/63 due to import payments.
 
The rupee has firmed from earlier this month when it hit a record low of 84.90 to the dollar as payment pressure and international oil prices have eased.
 
The State Bank of Pakistan said late on Tuesday that exchange rate volatility during the first half of the 2009/10 fiscal year was 2.7 percent, compared with 10.5 percent in the same period last year which showed exchange rate stability with improving macroeconomic fundamentals.
 
Dealers said dollar inflows from remittances from overseas Pakistanis had also helped steady the rupee slightly in recent days.
 
According to official data released this month, remittances rose more than 24 percent to $4.531 billion in the first six months of the financial year. (For more Reuters coverage of Afghanistan and Pakistan, see: http://www.reuters.com/news/globalcoverage/afghanistanpakistan)
 
 
 
 
   
 
 
 
 
 
 
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