Pakistani stocks suffer sharp losses

Karachi Stock Exchange suffer sharp losses

KARACHI: Karachi Stock Exchange 100 index closed more than 1 percent lower on Friday, dragged downwards by sharp losses in two heavyweights, the Oil and Gas Development Co Ltd and the Pakistan State Oil Co Ltd.

The Karachi Stock Exchange’s benchmark 100-share index closed 1.44 per cent, or 316.69 points, lower at 21,698.35. Participants feared aggressive foreign selling on the back of weakness in global markets. Investors also remained cautious ahead of the monetary policy announcement due today. Volume leaders were FCCL, TRG, and.Local investor confidence will be restored on easing of persistent foreign selling and stability in global markets. We recommend fresh buying in cement sectors as DGKC, FCCL and LPCL are still fundamentally strong on the back of sliding coal prices which is a major input cost. Market sentiment will turn bullish on Monday due to the reduction of 50 bps in the policy rate announced today after market hours. Wasi Ahmed Equity Sales manager at JS Global

The rupee ended weaker at 98.88/98.93 against the dollar, compared to Thursday’s close of 98.80/98.85.

Overnight rates in the money market rose to 9.40 per cent from Thursday’s close of 8 per cent.