Pakistani stocks up; rupee flat

The positive mood on quarterly earnings is driving investor sentiment to the positive side.

Pakistani stocks ended higher on Tuesday as investors expected healthy corporate profits for the year ending June 30,which are due to be announced in the coming weeks,dealers said.

The Karachi Stock Exchange’s benchmark 100-share index,ended 0.49 percent,or 49.68 points,higher at 10,251.53 points on turnover of 80.77 million shares.

The market is fairly stable ahead of the earnings season,said Asad Iqbal,chief investment officer at Faysal Asset Management Ltd.

But with low volumes owing to lack of a leverage product.

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.

Dealers also said investors were on the sidelines ahead of the monetary policy,which is due to be announced towards the end of this month.

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In the currency market,the rupee ended almost flat at 85.52/58 to the dollar,compared with Monday’s close of 85.50/57 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 were flat at 12.10 percent,compared with Monday’s close of between 12.10 percent and 12.20 percent and dealers expect rates to hover around current levels.

There were no scheduled inflows or outflows on Tuesday,and the next outflow amounting to 8 billion rupees ($93.45 million) is scheduled for Thursday.