Stocks gain 6.34 points

KARACHI: Shares at local capital market ended almost flat on Thursday as investors remained cautious ahead of the monetary policy announcement on Saturday by the State Bank of Pakistan (SBP), dealers said.

The Karachi Stock Exchange's (KSE) benchmark 100-share index
ended 0.05 percent, or 6.34 points, lower at 12,477 on turnover of 112.3 million shares.

"Lacklustre activity was seen at the KSE ahead of the monetary policy announcement despite good corporate results," said Samar Iqbal, dealer at Topline Securities Ltd.

Analysts said volume is expected to remain thin until the announcement on Saturday, in which eight out of 10 analysts polled expect the SBP to increase its key policy rate by at least 50 basis points, to 14.5 percent, to combat double-digit inflation.

In the last announcement in November, the SBP hiked the key policy rate by 50 basis points, to 14 percent.

The rupee ended firmer at 85.77/83 to the dollar, compared with Wednesday's close of 85.82/87 amid a lack of import payments, but dealers expect pressure on the local unit because of rising international oil prices.

In the money market, overnight rates rose to the top level of 13.90 percent, compared with the previous day's close of between 12.75 percent and 13 percent, amid tight liquidity in the interbank market.