KSE flat as investors observe caution

KARACHI: Stocks prices at Karachi Stock Exchange (KSE) ended flat on Monday, recovering from an early decline of more than 2.6 percent after bargain hunters snapped up cheap shares, dealers said.

The Karachi Stock Exchange's benchmark 100-shareindex closed 0.4 percent, or 4.96 points, higher at 11,380.05 on turnover of 106.74 million shares.

The KSE-index took its cues from regional markets in early trade, which declined after the U.S. credit rating downgrade.

"Investors started accumulating shares at lower levels which led to the recovery at the local bourse," said Sajid Bhanji, director at Arif Habib Ltd.

On Friday, the KSE-index closed at a more than a four-month low.

Dealers said investors also bought on hopes of strong corporate profits, due to be announced the coming days.

Pakistan Petroleum Ltd is due to announce its result for the 2010/11 fiscal year on Tuesday.