Business | Markets
Pakistani stocks and rupee go down again
Pakistani stocks fell 3 per cent yesterday as investors worried possible cracks in the coalition government will again raise political tension.
- Reuters
- Published: 23:42 August 21, 2008
Karachi: Pakistani stocks fell 3 per cent yesterday as investors worried possible cracks in the coalition government will again raise political tension.
The benchmark Karachi Stock Exchange index fell as much as 3.02 per cent to an intra-day low of 10,207.92. It slightly pared losses by the end of trade and closed 2.75 per cent lower.
Investors said they were worried former prime minister Nawaz Sharif will pull his party out of the coalition, worsening political turbulence, and setting off a series of rating downgrades by Standard & Poor's (S&P) and Moody's.
But S&P said its "B" rating for Pakistan with a negative outlook adequately reflected the downside risks at this point, and it had no plans to revise its rating.
Meanwhile, the rupee weakened over 2 per cent to a near record low, as investors sold the currency.
The rupee weakened 2.1 per cent against the dollar to end trade at around 76.30, Reuters data showed. One trader said the currency was last dealt at 76.55/65.
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