Updated at: 1854 PST, Friday, November 26, 2010
 KSE slightly up in dull trade; rupee lower
KARACHI: Karachi Stock Exchange (KSE) edged slightly higher on Friday but trade remained dull as investors maintained caution ahead of the monetary policy announcement due on Monday, dealers said.
Most analysts expect the State Bank of Pakistan (SBP) to raise its key rate by 50 basis points to 14 percent.
"The expected rise in the policy rate, coupled with the weekend consideration, dampened the sentiment and investors remained reluctant to participate aggressively in the market." said Mohammed Sohail, chief executive of brokers Topline Securities.
KSE’s benchmark 100-share index ended 0.09 percent, or 9.68 points, higher at 11,145.02.
However, turnover was low at only 84.18 million shares, down from 86.15 million shares a day earlier and 153.97 million shares traded on Wednesday.
In the currency market, the rupee eased against the dollar to close at 85.75/80 per dollar, compared with Thursday's close of 85.62/66 amid strong demand for the US currency from importers.
"There is strong demand for the dollar at the moment which is likely to keep the rupee under pressure for now," said a dealer at a foreign bank.
However, dealers said healthy dollar inflows, especially in the form of remittances from overseas Pakistanis, are expected to prevent a free fall in the rupee's value.
In the money market, overnight rates rose to close at 13.20 percent from 10.50 percent a day earlier, after SBP mopped up 25 billion rupees from the interbank market earlier in the day. |
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