Business | Markets
Pakistan stocks end weaker
Pakistan's main stock index ended flat on Saturday despite a downgrade in the outlook for the country's debt as the market remained propped up by a floor on the index imposed last month.
- Reuters
- Published: 00:06 September 24, 2008
Karachi: Pakistan's main stock index ended flat on Saturday despite a downgrade in the outlook for the country's debt as the market remained propped up by a floor on the index imposed last month.
Moody's Investor Services downgraded the outlook for Pakistani debt to negative and highlighted the foreign exchange market's doubts over when funds would arrive to bolster dangerously low currency reserves.
The Karachi Stock Exchange benchmark 100-share index ended a marginal 0.01 per cent, or 0.71 point, lower at 9,199.51 on turnover of 4.2 million shares.
"If there was no floor we would have seen massive selling by local and foreign investors," said Shuja Rizvi, director of broking operations at Capital One Equities.
"It seems now it will be very difficult to attract foreign investment."
The KSE board imposed a floor on the benchmark index on August 28 to stop if falling below 9,144 points. The floor is due to be reviewed tomorrow, but dealers do not expect it to be removed.
Authorities also banned short selling in the ready and futures markets for a month.
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