Pakistan stocks rise ahead of rate increase

Karachi: Pakistan stocks ended higher but in dull trade as investors stayed on the sidelines ahead of the announcement of the monetary policy.

Later on Wednesday, Pakistan's central bank announced an increase in its key policy rate to 13.5 per cent from 13 per cent in a bid to contain the fiscal deficit and combat rising inflation.

The Karachi Stock Exchange's benchmark 100-share index ended 0.41 per cent, or 41.18 points, higher at 10,022.25.

Turnover was 46 million shares, compared with 86.74 million shares on Tuesday.

"There was some interest in middle tier stocks but for the most part investors were cautious as they are unsure about whether the central bank will raise the policy rate or keep it unchanged," said Mohammad Sohail, chief executive of Topline Securities Ltd.