OGDC, shaky economy dent KSE

KARACHI: Karachi Stock Exchange (KSE) ended lower on Monday as investors sold shares of heavyweight Oil and Gas Development Co Ltd (OGDCL), while many remained on the sidelines on economic concerns, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index fell 0.58 percent, or 65.65 points, to end at 11347.66 on volume of just 29.3 million shares.

"On the first day of the New Year, KSE closed in negative territory mainly because of OGDCL and overall volume remained dull in the absence of any major catalyst," said Samar Iqbal, a dealer at Topline Securities Ltd.

OGDCL fell 2.32 percent to 148.10 rupees.

Dealers said investors were also concerned about counbtry’s bleak economic outlook. The current account deficit stood at $2.104 billion in July-Nov compared with $589 million in the year-earlier period.

The deficit is likely to widen further in the coming months because of debt repayments and a lack of external aid.

Islamabad has to start paying back an $8 billion International Monetary Fund loan in early 2012. Without additional sources of revenue, foreign exchange reserves may come under pressure.

Foreign exchange reserves stood at $16.77 billion in the week ending Dec. 23, compared with a record $18.31 billion as of July 30. (Reuters)