Index up 19 points at KSE

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KARACHI: The benchmark KSE 100-share Index ended 19 points up on Thursday, thanks largely to healthy corporate results announced by companies in recent days, and dealers said the index is expected to remain steady in the next few days.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.16 percent, or 19.23 points, higher at 11,981.74.

Volume rose to 113.5 million shares, compared with 143.73million shares traded on Wednesday.

"The earning season is in full swing as we have had good corporate results from companies like Pakistan State Oil ," a dealer at KSE said.

Dealers said the index was negative in the morning after a bomb attack on a bus carrying navy officials, but gained later in the day as healthy results boosted sentiment. Taliban militants detonated a roadside bomb in Karachi on Thursday, killing four members of the navy, the third attack on the navy in less than a week.

A motorcyclist was also killed in the blast, targeted at a navy bus, and at least five people were wounded.

Dealers said while the results boosted sentiment and will help keep the market steady, it is unlikely to gain sharply as investors remain worried that Pakistan's upcoming budget may include some measures that could affect investment.

The government is expected to announce the budget for the2011/12 (July-June) fiscal year by the end of May or early June.

The rupee, meanwhile, ended weaker, but dealers said healthy dollar inflows would keep the local unit steady in the near term.

The rupee closed at 84.65/4.70 to the dollar, down from Wednesday's close of 84.55/58. The rupee has performed strongly in recent months, hitting an 11-month high earlier this month, thanks largely to a record inflow of remittances, strong foreign exchange reserves, healthy exports and a current account surplus, according to analysts and officials.

Remittances by overseas Pakistani increased by 22.37 percent to more than $8 billion in the first nine months of the 2010/11fiscal year, and in March a record $1.05 billion was received, according to data from the State Bank of Pakistan.

In the money market, overnight rates rose to end at 12.25percent from 11.10 percent a day earlier, after the central bank mopped up funds from a liquid market through consecutive open market operations in the last few days.