Pakistani stocks ended flat on Monday,in dull trade as investors remained on the sidelines ahead of the monetary policy for August and September announcement,due to be unveiled on Friday,dealers said. The Karachi Stock Exchange's benchmark 100-share index,rose 0.02 percent,or 1.64 points,to end at 10,297.68 points. Volume fell to 40.19 million shares,compared with 67.39 million shares traded on Friday. Investors are extremely cautious right now and are likely to stay away from the market till the monetary policy is announced,said Asad Iqbal,chief investment officer at Faysal Asset Management Ltd. A Reuters poll found 12 of 15 analysts expected the central bank to keep its policy rate unchanged at 12.5 percent when it sets monetary policy for August and September in a meeting on July 30,but further tightening could be coming when the central bank meets next in September. However three analysts expected the central bank to raise its key policy rate by 50 basis points because of a widening fiscal deficit. Dealers said investors were also waiting for the outcome of a meeting between the KSE authorities to approve recommendations for the reintroduction of margin buying. The meeting started after the market closed on Monday. In the currency market,the rupee ended weaker at 85.55/61 to the dollar,compared with Friday's close of 85.50/56 because higher demand for dollar due to import payments. Dealers said the local unit was expected to stay rangebound in the near term. The rupee fell to a record closing low of 85.75/80 this month amid high dollar demand from importers as well as debt repayments. In the money market,overnight rates fell to 11.00 percent,from Friday's close of 12.00 percent but dealers expect rates to rise this week.
