Karachi index rebounds but mood wary

Karachi: Pakistani stocks rose yesterday after falling by more than two per cent the previous day as bargain hunters stepped in, but dealers said volume was low because of security fears.

The Karachi Stock Exchange .KSE benchmark 100-share index ended 0.83 per cent, or 74.66 points, higher at 9,087.70 on turnover of 77 million shares.

"Stocks recovered after falling yesterday but volume remains a cause for concern and reflects low investor confidence," said Sajid Bhanji, a dealer at brokers' Arif Habib Ltd.

The KSE-index fell on Tuesday on fears that fallout from a debt restructuring in Dubai could reignite global financial turmoil.

But analysts said the impact of Dubai on Pakistani markets would be limited as there was not much investment from Dubai in Pakistan. Dealers said turnover was on the low side on security fears.