Pakistani stocks give up gains

Karachi: An early rally in Pakistani stocks fizzled out yesterday despite hopes that a presidential election over the weekend would reduce uncertainties, as investors want to see concrete action to bolster the economy.

"Since investor confidence has not yet been fully restored, cautious investors are booking profits at higher levels," said Shuja Rizvi, director broking operations at Capital One Equities Ltd.

The Karachi Stock Exchange's (KSE) benchmark share index ended 45.91 points or 0.5 per cent lower at 9,296.23, having rallied more than one per cent in early trade.

Pakistan's main stock index, which rose for six consecutive years from 2002 and was one of the top performers in Asia during that period, had plunged 41 per cent from a lifetime high in April. The index is down 34 per cent since the start of the year due to political uncertainty and weak economic fundamentals.

The authorities have taken a series of measures to stop the freefall since mid year and yesterday, KSE members asked the board to retain a 9,144 floor on the index, imposed on August 28.