KSE bearish: Index loses 42 points

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KARACHI: Stocks at Karachi Stock Exchange (KSE) fell on Wednesday amid a lack of interest from investors, and the sentiment was also dampened by the deteriorating law and order situation in Karachi, dealers said.

Officials said 23 people were killed in Karachi, Pakistan's biggest city and commercial capital, in the last two days in a surge in ethnic and political violence.

They said most of those killed fell victim to such violence, which has gripped some parts of the city, though the number could include those falling victim to crime and personal feuds.

A report from the Human Rights Commission of Pakistan said a total of 1,138 people were killed in Karachi in the first six months of 2011, of which 490 fell victim to political, ethnic and sectarian violence.

The Karachi Stock Exchange's benchmark 100-share index ended 0.34 percent, or 42.93 points, lower at 12,533.55,on turnover of 68.50 million shares.

"Bearish activity was witnessed in the market on limited retail and institutional interest," said Ahsan Mehanti, a director at Arif Habib Investments Ltd.

He added that deteriorating law and order situation in the city, as well as concerns on rising fiscal deficit also affected the market sentiment.

Pakistan's budget deficit for the fiscal year that ended on June 30 was 5.3 percent of gross domestic product, higher than earlier estimated, a finance official said on Wednesday.

Last month, Finance Ministry Abdul Hafeez Shaikh projected the deficit for 2010/11 at 5.1 percent of GDP. (Reuters)