KSE 100-index sheds 167 points, ends at 12,098

Updated at: 1758 PST, Thursday, July 28, 2011
KARACHI: The Karachi Stock Exchange's (KSE) benchmark100-share index ended down 1.37 percent, or 167.48 points, at 12,098.05 on turnover of 64.31 million shares due to a fall in global stocks.

Mounting concerns about a U.S. debt default dragged global stocks down to their lowest level in more than week and drove the dollar to a record low against the safe-haven Swiss franc on Thursday.

The rupee recovered on Thursday from a record low hit the previous day because of lack of import payments, but dealers expect the local currency to remain under pressure.

In the money market, the rupee ended at 86.48/53 to the dollar, firmer than Wednesday's close of 86.56/58. The rupee hit a record low of 86.58 on Wednesday.

"The rupee was traded as high as 86.57 today," said a dealer at a local bank.

Dealers said dollar payments are typically higher in July and August because of stronger oil demand and debt payments. As well as oil payments, the International Monetary Fund's stalled aid programme to Pakistan is also weighing down the rupee.

Foreign direct investment has also been falling, dropping 26.8 percent in the 2010/11 fiscal year to $1.573 billion from $2.150 billion in the same period last year.

But Pakistan's current account surplus gives the country some sense of financial security though analysts said it might not last for much longer. (Reuters)