KSE benchmark 100-index sheds 79 points

KARACHI: The Karachi Stock Exchange's (KSE) benchmark 100-share index fell 0.66 percent, or 79.35 points, to close at11,913.42. Turnover fell to 28.66 million shares, compared with 51.34million shares traded on Wednesday.

Stocks ended lower and volume fell to a two-month low, as concerns that the European debt crisis could spread to U.S. banks prompted investors to book profits, dealers said.

World stocks hit a one-week low on Thursday and German Bunds rose as Spain paid more to sell 10-year debt than at any time since 1997, sparking fears it may join other euro zone peripheral states in being unable to finance itself.

"Bearish activity was witnessed at the KSE, as global markets fell following a Fitch report that stated the EU debt crises could spread to U.S. banks," said Ahsan Mehanti, directorat Arif Habib Investment Ltd.

Fitch Ratings warned that it may reduce its "stable" rating outlook for U.S. banks with large capital markets businesses because of contagion from problems in troubled European markets. (Reuters)