Stocks rise; rupee eases further to new low

KARACHI: The Karachi Stock Exchange”s (KSE) benchmark 100-share index, ended 0.73 percent, or 71.30 points, higher at 9,860.99. Turnover was 77.94 million shares, up from 50.55 million shares traded on Wednesday.

The index edged higher amid renewed interest from local investors on hopes that margin buying would soon be reintroduced in the market.

KSE authorities and the Securities and Exchange Commission of Pakistan (SECP) met last month to discuss margin buying and other leveraged products, and decided to form a committee required to submit its recommendations within 15 working days.

A meeting of the stakeholders to discuss the issue took place on Thursday, dealers said, though further details were not immediately available.

“The ongoing meeting regarding leverage products enticed Investors enough to remain active through out the day,” said Samar Iqbal, a dealer at Topline Securities.

“Continued institutional support enhanced volumes, while modest profit taking from retailers was also witnessed towards the end of the session.”

The rupee edged further lower on Thursday to close at yet another record closing low against the dollar – its third in as many days – but dealers said sharp falls were unlikely in coming days.

The rupee ended at a record 85.65/70 to the dollar, down from 85.61/66 on Wednesday.

“The demand for the dollar from importers is persisting, therefore, we saw the rupee slide further today,” said a dealer at a local bank.

“However, we also saw some exporters selling dollars in the market to take advantage of the higher values, which improved dollar supplies,” he said.

Dealers said they expected the rupee to hover around current levels in days ahead, and said while it can ease slightly further, any major fall was unlikely as dollar supplies improved and demand also expected to subside.

In the money market, overnight rates rose to end at 12 percent from 11.0-11.5 percent a day earlier, and dealers expected them to remain around current levels near-term.

Forex reserves jump to record $16.77bn

KARACHI: Pakistan”s foreign exchange reserves rose to a record $16.77 billion in the week ending July 2, thanks to foreign inflows worth $750 million received during the week, the central bank said on Thursday.

The reserves stood at $15.83 billion the previous week.

“We received $470 million from the Asian Development Bank, $95 million from the World Bank and $185 million from USAID, which has pushed the reserves to a record level,” said Syed Wasimuddin, the State Bank of Pakistan”s (SBP) chief spokesman.

The previous record high was $16.45 billion, hit in October 2007, he said.

Reserves held by the SBP rose to $12.95 billion from $12.06 billion a week earlier, while those held by commercial banks edged up to $3.82 million from $3.77 billion, said Wasimuddin.

Pakistan’’s total liquid foreign exchange reserves

Full Story And Original Content.TrendPK.com KARACHI: Pakistan’’s total liquid foreign exchange reserves stood at $14,123.5 million on November 14, 2009, State Bank of Pakistan said Thursday. According to break-up, forex reserves held by SBP were $10,494.0 million and net foreign reserves

Full Story And Original Content.TrendPK.com KARACHI: Pakistan’’s total liquid foreign exchange reserves stood at $14,123.5 million on November 14, 2009, State Bank of Pakistan said Thursday.
According to break-up, forex reserves held by SBP were $10,494.0 million and net foreign reserves [...]