Karachi index ends flat after rate cut

Karachi: Pakistani stocks ended slightly lower on Wednesday as the market remained unmoved by a widely expected interest rate cut the previous day, dealers said.

The State Bank of Pakistan cut the key policy rate by 50 basis points to 12.5 per cent for December and January to spur economic growth, but it remained cautious because of the country's security problems.

The Karachi Stock Exchange KSE benchmark 100-share index ended 0.32 per cent, or 29.13 points, lower at 9,204.57 on turnover of 59.72 million shares.

"The market had expected at least a 50 basis points rate cut," said Asad Iqbal, managing director at Ismail Iqbal Securities.

"Investors needed more and we would have seen a positive rally had the central bank cut the rate by 100 basis points."