Updated at: 1846 PST, Thursday, February 10, 2011
 KARACHI: Shares at local capital market ended lower as investors remained worried over concerns of escalating tension between Pakistan and the United States, dealers said.
Pakistan is working hard to defuse tensions over the fate of Raymond Davis, a US citizen arrested in Pakistan after killing two men in Lahore on January 27, in a case that threatens billions of dollars in US aid and could further damage an already strained alliance, a diplomatic source said this week.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.91 percent, or 111.81 points, lower at 12,187.47.
Turnover rose to 89.82 million shares from to 72.27 million shares traded on Wednesday.
Dealers said institutional profit taking also continued despite healthy corporate earning announcements in oil and banking sectors.
Meanwhile, the rupee firmed further on Thursday amid soft dollar demand from importers, and dealers said the local unit could gain more in days ahead.
Officials and dealers said a record inflow of remittances, strong foreign exchange reserves positions, healthy exports and a current account surplus were the reason for the gain in the rupee's value in recent days.
"It looks like there are no major payment flows this week and probably until the middle of next week," said a dealer at a major local bank.
The rupee ended at 85.10/12 to the dollar, firmer than the previous day's close of 85.15/20.
Dealers said the rupee traded as high as 85.02 to the dollar during the day.
"I think the rupee will test the 85.00/dollar level soon," said one dealer.
In the money market, overnight rates rose to close at 13.90 percent from 11.10 percent following the settlement of a treasury bills auction a day earlier. |
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