| Updated at: 2158 PST, Tuesday, January 11, 2011|
KARACHI: Karachi Stocks fell on Tuesday as investors booked profits at higher levels but dealers expect a market recovery in the short term on hopes of strong corporate earnings.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.32 percent, or 39.49 points, lower at 12,267.21, on turnover of 120 million shares.
"There was profit taking in overbought scrips but investors remained active in banking, fertiliser and energy stocks on expectations of healthy profits," said Ahsan Mehanti, director at Arif Habib Investments Ltd.
Corporate results for the quarter ending Dec. 31 are due to be announced in the next few days.
In the currency market, the rupee ended at 85.68/73 to the dollar, firmer than Monday's close of 85.72/77 on higher remittances from overseas Pakistanis.
According to official data, remittances rose 17 percent to $5.3 billion in the first six months of fiscal year 2010/11 (July-June).
In the money market, overnight rates ended at 11 percent, compared with Monday's close of between 11.25 percent and 11.50 percent, and dealers said they were waiting for the treasury bill auction scheduled for Wednesday in which they expect a hike in the cut-off yield of the three month paper.