KSE 100-index ends 74 points lower

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KARACHI: The Karachi Stock Exchange's (KSE) benchmark 100-share index on Thursday ended 0.62 percent, or 74.18 points, lower at 11,962.18 on turnover of 64.35 million shares.

Stocks fell, taking their cue from the region, and dealers said the market is likely to remain range-bound pending the outcome of talks between Pakistan and the International Monetary Fund (IMF) and until a new budget is out.

Officials from the IMF and Pakistan began talks on Wednesday in Dubai to discuss budget targets for the 2011/12 fiscal year. The meeting is expected to end on May 18 and the new budget is due to be announced on May 28.

The two sides will also try to reach agreement on the release of the remaining $3 billion of an $11 billion IMF loan, which is due in two payments.

Oil fell on Thursday, and silver was set for its worst two-week slide in nearly 25 years, after another wave of selling hit the commodity complex, exacerbated by the burgeoning strength of the dollar.

In the currency market, the rupee ended firmer at 84.84/89 to the dollar, compared with Wednesday's close of 84.93/98because of a rise in remittances, dealers said.

Remittances from overseas Pakistanis increased by 23.81 percent to more than $9 billion in the first 10 months of the2010/11 fiscal year, and in April $1.03 billion was received, according to the State Bank of Pakistan.

In the money market, overnight rates ended flat at 11percent, unchanged from the previous day's close amid increased liquidity in the inter bank market.

Dealers said there were scheduled inflows amounting to 38 billion rupees ($447 million) due on Friday. (Reuters)