Pakistan stocks end lower on flood worries

Karachi: Pakistani stocks ended almost 3 per cent lower Monday after the prime minister warned a new wave of floods could be more destructive, dealers said.

The damage caused by the floods and the cost of recovery could bring long-term economic pain to Pakistan.

Prime Minister Yousuf Raza Gilani's office warned on Sunday that a "second and third wave of floods might turn out to be more dangerous".

The Karachi Stock Exchange (KSE) benchmark 100-share index .KSE ended 2.91 per cent, or 286.24 points, lower at 9,537.13 on turnover of 64.3 million shares.

"Intense selling pressure was witnessed as investors raised their concerns over the consequences of the floods on the economy, particularly rising inflation and fiscal deficit," said Ahsan Mehanti, director at Arif Habib Investments Ltd.