Pakistan stocks up on interest rate hope; rupee weakens
KARACHI – Pakistani stocks closed higher on Thursday in anticipation of a cut by the central bank of its key discount rate when it announces monetary policy next week.
The Karachi Stock Exchange 100-share index closed 0.81 percent or 269.95 points up at 33,729.96.
“The market rallied in anticipation of a lower consumer price index and the expectation of a cut in the interest rate,” said Mohammad Rizwan, vice president at Topline Securities.
Analyst Khurram Arif at Optimus Capital Management said the market was supported by bank results pushing up banks stocks.
“Foreign buying also pushed the market up,” he said.
Engro Corporation Ltd was up 11.87 rupees to close at 316.54 rupees, while Engro Fertilizer Ltd rose 2.48 rupees to close at 87.03.
The rupee ended at 101.66/101.71 against the dollar compared with Wednesday’s close of 101.55/101.65.
Overnight rates in the money market rose to 7.50 percent from Wednesday’s close of 7.00 percent. – Reuters