Pakistani stocks end up; rupee weakens; o/n rates down

The Karachi Stock Exchange's benchmark 100-share index ended 0.24 per cent, or 28.12 points, higher at 11,930.24 on turnover of 63.35 million shares. - File Photo

KARACHI: Light trading nonetheless pushed Pakistani stocks higher on Tuesday led by middle-tier shares, as investors stayed on the sidelines ahead of the monetary policy announcement and the budget announcement for 2011/12 fiscal year, dealers said.
The monetary policy is due to be announced on Saturday while the budget for 2011/12 fiscal year is due to be announced on May 28.
The Karachi Stock Exchange’s benchmark 100-share index ended 0.24 per cent, or 28.12 points, higher at 11,930.24 on turnover of 63.35 million shares.
“Activity remained thin on uncertainty over the SBP (State Bank of Pakistan) policy announcement on May 21 and federal budget implications on the corporate sector,” said Ahsan Mehanti, director at Arif Habib Investments.
In the currency market, the rupee ended weaker at 85.47/52 to the dollar compared with Monday’s close of 85.37/42 because of import payments, but dealers said incoming remittances should support the rupee and it should remain around these levels.
Remittances from overseas Pakistanis increased by 23.81 per cent to more than $9 billion in the first 10 months of the 2010/11 fiscal year, with $1.03 billion received in April, according to the State Bank of Pakistan.
In the money market, overnight rates fell to between 12.75 per cent and 13 per cent, compared with Monday’s close of 13.90 per cent after the SBP conducted a three-day reverse repo and bought government paper worth 22.65 billion rupees ($265 million).
Dealers said they were awaiting the treasury bill auction scheduled for Wednesday in which they expect cut-off yields to rise marginally.