KARACHI: Pakistani stocks ended lower on Monday led by selling in the banking sector, after Moody’s Investors Service downgraded the local currency ratings of some major Pakistani banks, dealers said. Moody’s Investors Service on Friday downgraded the ratings of five of the biggest banks in Pakistan, including National Bank of Pakistan (NBP), MCB Bank (MCB) and United Bank Ltd (UBL).
The Karachi Stock Exchange’s benchmark 100-share index ended 0.20 percent, or 23.46 points, lower at 11,596.69.
Turnover was 181.16 million shares, compared to 233 million shares traded on Friday.
“Bearish activity was witnessed following the Moody’s downgrade, and investors are likely to stay on the sidelines ahead of the long weekend,” said Arif Habib Director Ahsan Mehanti.
The stock market is closed on Thursday and Friday because of Ashura. NBP ended 0.55 percent lower at 70.60 rupees and MCB bank fell 0.91 percent to 216.31 rupees. Dealers said 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 the reforms needed to secure the next tranche, a Finance Ministry official said last 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.
In the currency market, the rupee ended firmer at 85.77/82 to the dollar, compared with Friday’s close of 85.80/85 because of an increase in remittances from overseas Pakistanis but dealers expect pressure on the local unit due to a rise in international oil prices.
According to official data, remittances from overseas Pakistanis rose over 15 percent to $4.43 billion in the first five months of fiscal year 2010/11, compared with the same period last year. In the money market, overnight rates ended flat at its lowest level of 11 percent, unchanged from Saturday’s close because of higher liquidity in the interbank market.
LSE remains bearish, drops 10.81pts: LAHORE
Staff Report
The Lahore stock Exchange (LSE) closed in red zone on Monday with a dip in volume. The Lahore Stock Exchange 25-shares dwindled 10.81 points to close at 3,618 against its opening at 3,628.81 levels. Volume of the market remained 9.85 million shares, which was 2.1 million shares less than Friday’s turnover of 11.91 million shares.
Out of 130 active scrips, 34 went up, 32 declined and 64 showed no change in their opening values. Nimir Industries Chemical, with a turnover of 1.42 million shares, was the volume leader and it added Rs 0.71 to close at Rs 2.58 against its opening at Rs 1.87. Silkbank, with a turnover of 1.18 million shares, was the second volume leader and it added Rs 0.09 to close at Rs 2.80 against its opening at Rs 2.81. Adamjee Insurance Company ended the day as the major gainer, adding Rs 3.45 to close at Rs 87.87 against its opening at Rs 84.42. Pakistan Oil Fields was the major loser as it lost Rs 3.91 to close at Rs 287.89 against its opening at Rs 291.80.
