KSE 100-index sheds 100 points

KARACHI: The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.81 percent, or 100.12 points, lower at 12,191.78. Turnover was only 32.21 million shares, compared with 31.59million shares a day earlier.

Volume fell to a 10-month low of 29.53 million shares on Friday.

Stocks extended losses on Tuesday in another day of lacklustre trade, as investor sentiment reeled from last week's violence in Karachi and growing strains in the U.S.-Pakistan relationship.

Despite a lull in violence, dealers say investors remained concerned and were unwilling to re-enter the market aggressively.

"The volumes continue to shrink and investors are still unable to get over the despondency over the situation," said Ashraf Zakaria, a dealer at brokers Ali Hussain Rajabali and Co. "People are not short of money, they are short of confidence."

Dealers said concerns over the deteriorating relations between Pakistan and the United States were adding to the already weak sentiment.

In the currency market, the rupee strengthened to close at 85.84/88 to the dollar, up from 85.93/96 a day earlier, as steady dollar inflows outmatched the demand from importers. (Reuters)