KSE takes nose dive; Index slides 231 points

KARACHI: The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 1.99 percent, or 231.47 points, lower at 11,375.14, after falling more than two percent on Friday.

Stocks fell sharply in thin trade on Monday as local investors remained on the sidelines while foreigners continued to sell. Dealers said the market was expected to stay soft for the near term.

Turnover fell to 58.53 million shares, compared with 125.13million shares traded on Friday.

"There was a lot of foreign selling today as well, and as a result the local players were also under pressure and remained shy," said Mohammed Sohail, chief executive of brokers Topline Securities.

On Friday, foreign investors sold shares worth a net $8.83million.

Analysts say in a small market like Pakistan, foreign selling of even $2 million to $3 million in a day amid lack of buyers is enough to spark a sell off. The numbers for Monday will be released later in the day.

In the currency market, the rupee eased versus the dollar as banks bought the U.S. currency on behalf of their clients to clear import payments.

The rupee closed at 85.50/55 to the dollar, down from 85.45/48 on Saturday.

Dealers said the rupee was expected to remain range-bound incoming days, and added that a steady inflow of dollars, especially in the form of remittances, is likely to help the rupee avoid a sharp fall despite steadily rising dollar demand. (Reuters)