Business | Markets
Karachi index up 2.5% but outlook uncertain
Pakistani stocks ended 2.5 per cent higher yesterday on optimism over measures to stabilise the market but dealers said investors were still cautious because of political and economic uncertainty.
- Reuters
- Published: 00:03 June 26, 2008
Karachi: Pakistani stocks ended 2.5 per cent higher yesterday on optimism over measures to stabilise the market but dealers said investors were still cautious because of political and economic uncertainty.
A coalition that emerged from February elections has been hobbled by infighting over the reinstatement of judges dismissed by President Pervez Mush-arraf last year, and over how to deal with the unpopular president who came to power as a general in a 1999 coup.
At the same time, the new government has to tackle widening trade and fiscal deficits and 30-year high inflation.
The KSE benchmark 100-share index ended 2.54 per cent, or 307.62 points, higher at 12,430.29 on turnover of 193 million shares. Gainers led losers 197 to 112.
The index gained 8.6 per cent on Tuesday.
"Still the outlook is slightly uncertain and a lot depends on the economic numbers that will come in, especially inflation," said Mohammad Sohail, director equity broking at JS Global Capital.
Inflation numbers for June are due out in the second week of July.
The rupee closed at 67.80/88 to the dollar yesterday, compared with Tuesday's close of 67.67/77, and after firming to Rs66 to the dollar in recent days because of foreign inflows.
The KSE-index fell 10 per cent last week and after falling to its lowest level in more than 15 months on Monday the authorities met to decide on measures to stabilise the market.
At a meeting on Monday evening, the Karachi Stock Exchange board decided with the Securities and Exchange Commission of Pakistan to reduce the daily limit that share prices can fall to just one per cent and increase the limit on upside movement to 10 per cent.
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