Stocks up Rupee firms [ARY News] 10 Feb, 2012
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Pakistani stocks rose marginally on Friday in low turnover as investors were cautious ahead of a central bank monetary policy announcement, dealers said.
Pakistan's central bank is seen keeping its key policy rate at 12 percent on Saturday as inflation is expected to rise during the remainder of the fiscal year through June because of higher oil and gas prices.
Eleven of 15 analysts polled by Reuters expect the State Bank of Pakistan (SBP) to keep the key rate steady, three anticipate it will cut it by 50 basis points and one expects it to cut it by 100 basis points.
The Karachi Stock Exchange (KSE) benchmark 100-share index rose 0.15 percent or 18.36 points, to 12,2231.60 points.
Volume fell to 64.5 million shares, compared with 139.14 million traded on Thursday.
"Investors (seemed to) prefer to wait until the announcement of the monetary policy and are then (expected to) take fresh positions on Monday if there are no surprises," said Shuja Rizvi, a dealer at brokers' Al-Hoqani Securities Ltd.
Monetary policy for the next two months will be unveiled on Saturday at 4 p.m. (1100 GMT).
In the currency market, the rupee ended firmer at 90.69/74 to the dollar, compared with Thursday's close of 90.70/75 because of lack of import payments, but dealers expect the pressure to continue following a rise in international oil prices.
Dealers said they were also cautious after the International Monetary Fund advised Pakistan to take immediate steps to tackle growing budget pressures and raise interest rates to contain inflation.
The IMF on Monday projected a widening of Pakistan's fiscal deficit in the 2011/12 fiscal year to 7 percent of gross domestic product, compared with the government's revised budget target of 4.7 percent.
The rupee touched a record low of 91.28 to the dollar on Jan. 9, pressured by worries about higher payments for oil imports and the country's overall economic health, especially a weakening current account.
The current account recorded a provisional deficit of $2.154 billion in the first six months of the 2011/12 fiscal year, compared with a surplus of $8 million in the same period last year, according to data from the State Bank of Pakistan.
The deficit is likely to widen further in coming months because of debt repayments and a lack of external aid.
In the money market, overnight rates ended at their top level of 11.90 percent, unchanged from Thursday's close amid lack of liquidity in the interbank market. | |
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