KSE takes hit form “memo controversy”

KARACHI: Karachi Stock Exchange (KSE) ended lower on Tuesday in thin volume amid a raging controversy over a mysterious memo in which the country's civilian government allegedly sought US help to prevent what was described as an imminent coup, dealers said.

Pakistan's ambassador to the United States Husain Haqqani is at the centre of a domestic political row over the memo sent inMay to Admiral Mike Mullen, then chairman of the U.S. Joint Chiefs of Staff.

A Pakistani-American businessman, Mansoor Ijaz, who sent the memo, said Haqqani had asked him for help in delivering the message purportedly from President Asif Ali Zardari after American forces killed Osama bin Laden in a secret raid in a Pakistani town in May.

"Uncertainty on the political front due to ongoing memo issue kept the local market under pressure and the KSE-index closed at its lowest level in the previous 10 sessions," said, a dealer.

The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 1.07 percent, or 127.79 points, lower at 11,767.00on turnover of only 28.37 million shares.

Haqqani was being grilled on Tuesday in Islamabad by the country's top civilian and military leadership over his alleged involvement in the controversy.

"There is definitely a concern about the overall political situation, which is why most investors either booked profits or chose to stay on the sidelines," said another dealer. (Reuters)