Updated at: 2325 PST, Tuesday, October 26, 2010
 KARACHI: Pakistani stocks ended lower on Tuesday after the central bank's annual report lowered the country's growth forecast for fiscal year 2010/11, dealers said.
The State Bank of Pakistan (SBP) on Monday lowered its gross domestic product (GPP) growth forecast to between 2-3 percent for the 2010/11 fiscal year (July-June), following the devastating floods in August.
It also forecast the fiscal deficit for the year ending June 30 to be between 5-6 percent, compared with the government's original target of 4 percent.
"Investors sold after SBP reported its forecast of the fiscal deficit rising further and also lowered the GDP growth projection," an analyst said.
Dealers said investors were awaiting the meeting between the International Monetary Fund (IMF) and Pakistani authorities, scheduled to start Wednesday to discuss the release of the sixth tranche of a $11 billion emergency loan agreed to in November 2008.
In the currency market, the rupee ended slightly firmer at 85.82/87 to the dollar, compared with Monday's close of 85.84/89, but dealers expect the local unit to come under pressure because of higher import payments.
The rupee has been supported because of higher remittances totalling $2.65 billion in the first quarter of the fiscal year of 2010/11 (July-June).
In the money market, overnight rates rose to 13 percent, compared with Monday's close of 12.50 percent, amid tight liquidity in the interbank market.
Dealers said the next scheduled inflows of 3 billion rupees ($34.9 million) were due on Thursday. |
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