Pakistani stocks end up; rupee flat

Hope stemming from Pak corporates has bolstered investors' confidence.

Written by Agencies | Karachi | Published: July 19, 2010 5:58:35 pm

Hope stemming from Pak corporates has bolstered investors’ confidence. Pakistani stocks rose on thin trade on Monday amid hopes of strong corporate results while dealers said investors were waiting for the introduction of a leverage product in the market.

The Karachi Stock Exchange’s benchmark 100-share index,ended 0.47 percent,or 48 points,higher at 10,201.85 points on turnover of 67.79 million shares.

Investors are accumulating selective shares on hopes of healthy profits but volumes will only increase once a leverage product is introduced,said Sajid Bhanji,a dealer at Arif Habib Ltd.

Results for the year ending June 30 are due to be announced in the coming weeks.

Dealers said volume is likely to improve after the expected reintroduction of margin buying.

The Karachi Stock Exchange authorities and the Securities and Exchange Commission of Pakistan (SECP) met this month to discuss the reintroduction of margin buying and the KSE sent its recommendations to the SECP on Friday.

In the currency market,the rupee ended almost flat at 85.50/57 to the dollar,compared with Friday’s close of 85.53/61 to the dollar,and dealers said the local unit was expected to stay rangebound in the near term.

The rupee fell to a record closing low of 85.75/80 last week amid high dollar demand from importers as well as debt repayments.

In the money market,overnight rates rose to between 12.10 percent and 12.20 percent compared with Friday’s close of 11.50 percent and 12.00 percent and dealers expect rates to hover around current levels.

There were no scheduled inflows or outflows on Monday.

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