Pakistani stocks end lower; Re firms

Pakistani stocks ended lower on Wednesday as investors booked profits...

Pakistani stocks ended lower on Wednesday as investors booked profits on higher levels on expectations of a rise in the cut-off yields of Pakistan Investment Bonds (PIBs),dealers said.

The result of the PIB auction,which has a target of 20 billion rupees ($234 million),is due to be announced later in the day.

The Karachi Stock Exchange’s benchmark 100-share index,fell 0.17 percent,or 17.50 points,to end at 10,234.03 points on turnover of 118.68 million shares.

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Expectation of an increase in PIB cut-off yield brought down the market to close in the red zone,said Samar Iqbal,a dealer at Topline Securities Ltd.

Dealers also said investors were cautious ahead of the monetary policy,which is due to be announced on July 30.

In the currency market,the rupee ended firmer at 85.45/55 to the dollar,compared with Tuesday’s close of 85.52/58 amid lack of import payments.

Dealers said the local unit was expected to stay rangebound in the near term.

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The rupee fell to a record closing low of 85.75/80 last week amid high dollar demand from importers as well as debt repayments.

In the money market,overnight rates ended at between 12.00 percent and 12.15 percent,compared with Tuesday’s close of 12.10 percent.

Dealers also expect the PIB cut-off yield to go higher due to expectations of a possible increase in the policy rate when the central bank unveils the monetary policy later this month.