KSE ends higher; rupee weakens; o/n rates flat

KARACHI: The Karachi Stock Exchange (KSE) index ended higher on Friday, in healthy turnover, as investors bought blue chips such as Pakistan Oilfields following an increase in international oil prices, dealers said.

KSE benchmark 100-share index ended 0.44 percent, or 51.06 points, higher at 11,620.15.

Turnover was 233 million shares, compared to 195.49 million shares traded on Thursday.

"Foreign investors were active today especially in the energy sector which gave confidence to local investors to enter the market," said Asad Iqbal, chief investment officer at Faysal Asset Management Ltd.

Global oil prices rose for a second day on Friday to trade to close to $89 a barrel.

POL ended 2.2 percent higher at 292.25 rupees.

Dealers said investors may be cautious on concerns of rising inflation. Investors may also be concerned over Pakistan's performance under its International Monetary Fund Programme.

Pakistan plans to seek a three-month extension of an $11 billion IMF loan programme to win more time to implement thereforms needed to secure the next tranche, a Finance Ministry official said this week.

An IMF mission came to Pakistan last month to review the country's performance and was due to present the country's case to its board in mid-December. Pakistan was hoping to secure the sixth tranche then.

Pakistan's consumer price index (CPI), rose 15.48 percent in November from a year ago, compared with Reuters poll's forecast of 15.37 percent.

In the currency market, the rupee ended weaker at 85.80/85 to the dollar, compared with Thursday's close of 85.70/75 because of an increase in import payments, especially for oil.

In the money market, overnight rates ended flat at its top level of 13.90 percent, unchanged from the previous day's close, as the State Bank of Pakistan sold treasury bills worth 20.5 billion rupees ($238 million) to mop up liquidity from the interbank market.