KSE-100 index gains 76.19 points

KARACHI: Shares at local capital market ended up on Thursday but in dull trade as investors were cautious ahead of the monetary policy, due to be announced later this week, dealers said.

Analysts expect the State Bank of Pakistan (SBP) to leave the key policy rate unchanged at 14 percent in its monetary policy for the subsequent two months, to be unveiled on Saturday.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.66 percent, or 76.19 points, higher at 11,564.25 on turnover of 62.66 million shares.

"Ahead of the monetary policy investors chose to stay cautious resulting in limited volume. However with the SBP expected to maintain status quo investors are cautiously bullish," said Asad Iqbal, chief investment officer at Faysal Asset Management Ltd.

In the currency market, the rupee continued to firm versus the dollar amid fewer import payments and increased supply of dollar.

The rupee closed at 85.20/30 to the dollar, compared with Tuesday's close of 85.30/40.

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

However dealers said the rupee could face some pressure as the SBP lifted restrictions on the forward cover facility against imports, imposed in July 2008.

In the money market, overnight rates stayed unchanged at the top level of 13.90 percent in tight liquidity and dealers said there were scheduled inflows of 153 billion rupees ($1.79 billion) against scheduled outflows of 149 billion rupees ($1.75 billion). (Reuters)