KARACHI: Pakistani stocks ended almost flat on Tuesday in dull trade as investors were cautious, awaiting clarification on the implementation of a reformed general sales tax under an IMF loan programme, dealers said. The Karachi Stock Exchange’s benchmark 100-share index ended 0.08 percent, or 9.06 points, lower at 11,431.01. Turnover fell to 118.3 million shares, compared to 170.5 million shares traded on Monday.
“Investors are cautious as they are waiting to see the outcome of discussions on the sixth tranche from the International Monetary Fund (IMF),” said Asad Iqbal, chief investment officer at Faysal Asset Management Ltd. 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.
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 85.67/70 against the dollar, compared with Monday’s close of 85.83/86 because of fresh inflows of the dollar but dealers expect pressure on the local unit due to rising international oil prices. In the money market, overnight rates ended up between 12.50 percent and 13 percent, unaffected from Monday’s close and dealers said there were scheduled inflows worth Rs 21 billion on Wednesday.
