Pakistan stocks end higher; monetary policy awaited

KARACHI, Nov 24 - Pakistani stocks ended slightly higher on Tuesday but in low turnover as investors waited for a monetary policy announcement for the next two months due later in the day, dealers said.

The Karachi Stock Exchange's <.KSE> benchmark 100-share index ended 0.13 percent, or 11.74 points, higher at 9,233.70 on turnover of 52.15 million shares.

"The market traded in a narrow range as investors are waiting for the monetary policy announcement," said Mohammed Sohail, chief executive at Topline Securities.

The State Bank of Pakistan is due to announce monetary policy for December and January at 5 p.m. .

Analysts said the central bank was likely to cut its key policy rate by 50 or 100 basis points to spur economic growth, which fell in the last fiscal year which ended in June to its slowest pace in eight years. [ID:nSIN389990]

Dealers said the market had discounted a 50 basis points cut in the policy rate.

However, if there was a 100 basis points cut, the market would rally and if the rate was left unchanged at 13 percent then the market could see selling pressure, they said.

The KSE-100 index has gained 60.5 percent this year after losing 57.9 percent last year.

In the currency market, the rupee ended at 83.48/59 to the dollar compared with Monday's close of 83.51/56. Dealers said trade was thin because of the upcoming monetary policy announcement.

The rupee has been supported by remittances from Pakistanis working overseas but dealers expect demand for dollars from importers will weaken the Pakistani currency.

According to the latest official data, remittances from Pakistanis working overseas rose 32 percent to $3.1 billion in the first four months of the 2009/10 fiscal year.

The rupee has weakened 5.23 percent this year after losing 22.12 percent last year. (For more Reuters coverage of Afghanistan and Pakistan, see: http://www.reuters.com/news/globalcoverage/afghanistanpakistan) ((E-mail: sahar.ahmed@thomsonreuters.com; Reuters Messaging: sahar.ahmed.reuters.com@reuters.net; Karachi newsroom: +92-21 3568 5192)) (If you have a query or comment about this story, send an e-mail to news.feedback.asia@thomsonreuters.com)