Political uncertainty weighs on Karachi stocks

ISLAMABAD: Local stocks ended lower on Friday as investors braced for the possibility of fresh political instability, traders said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.27 percent, or 41.37 points, lower at 15,039.18, on volume of 15.79 million shares.

Prime Minister Raja Pervez Ashraf is due to appear before the Supreme Court on Aug. 27 over his failure to comply with orders to reopen corruption cases against President Asif Ali Zardari.

The move, another twist in a long-running standoff between the government and the judiciary, could lead to further political turmoil.

Two months ago, Ashraf's predecessor, Yusuf Raza Gilani, was found guilty of contempt over the same issue and disqualified from holding the post of prime minister.

"Investors are being cautious ahead of the Supreme Court hearing next week," said a dealer.

Engro Corp was the biggest winner, gaining 3.01 percent to close at 96.50 rupees.