Pakistani stocks fell more than 3.2 percent and ended at an almost nine-month low, taking a cue from world markets. Dealers said healthy corporate results were unable to spark any investor interest, either. The Karachi Stock Exchange’s benchmark 100-share index closed 3.24 percent, or 369.25 points, lower at 11,034.92, its lowest close since Nov. 16, 2010, on turnover of 69.14 million shares. The KSE-index is down 8.2 percent this year.
“The fear that foreigners can also sell their Pakistani shares because of the continuous decline in regional markets forced investors to dump their shares,” said Samar Iqbal, a dealer at Topline Securities Ltd. World stocks sank sharply for a 10th session running on Tuesday, racking up a 20 percent loss since early May, as gold hit another record high in response to investors dumping riskier assets in highly volatile markets.
Dealers said strong corporate results from Pakistan Petroleum Ltd (PPL) and Pakistan State Oil (PSO) was not enough to restore the confidence of jittery investors. PPL reported on Tuesday a net profit of 31.44 billion rupees ($363.9 million) in the 2010/11 fiscal year (July-June), compared with 23.32 billion rupees ($269.9 million) last year.
PSO reported on Tuesday a net profit of 14.78 billion rupees ($171 million) for the 2010/11 fiscal year (July-June), up 63 percent from 9.05 billion rupees the previous year.
In the currency market, the rupee ended weaker at 86.41/44 to the dollar, compared with Monday’s close of 86.37/43 because of higher import payments. The rupee hit a record low of 86.83 to the dollar on Monday. Dealers said dollar payments are typically higher in July and August because of stronger oil demand and debt payments. In the money market, overnight rates ended lower at 10.50 percent, compared with Monday’s close of 11 percent and dealers expect rates to remain on the lower side due to increased liquidity.
