Pakistani stocks end lower; rupee firmer

KARACHI, Nov 5 - Pakistani stocks ended lower on Thursday in low volume as investors concerned about security booked profits at higher levels after the market gained more than 2.4 percent the previous day, dealers said.

The Karachi Stock Exchange's benchmark 100-share index ended 0.47 percent, or 42.89 points, lower at 9,112.10 on turnover of 122.4 million shares.

"The lack of volume clearly reflects that investors are still not confident to enter the market on security fears," said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd.

Many investors have been sidelined since Taliban militants stepped attacks in response to an army offensive against them in their stronghold in the South Waziristan region on the Afghan border.

However, the KSE-index gained 2.42 percent on Wednesday after the government averted a destabilising coalition split by abandoning a bid to get parliamentary approval for an amnesty from graft charges for the president and other senior politicians. [ID:nSP516264]

Former president Pervez Musharraf introduced the amnesty by decree in 2007 but the Supreme Court said in July that it had to be approved by parliament.

Dealers said there were also expectations of a cut in interest rates in a monetary policy announcement due by the end of the month.

Dealers said the fundamentals of the market were strong but it could face still pressure because of political uncertainty and security fears.

The KSE-100 index is up 56 percent this year after losing 58.33 percent last year.

In the currency market, the rupee ended firmer at 83.59/69 to the dollar compared with Wednesday's close of 83.63/72.

The rupee has weakened 5.42 percent this year after losing 22.12 percent last year. Dealers expect pressure from importers will further weaken the currency. (For more Reuters coverage of Afghanistan and Pakistan, see: http://www.reuters.com/news/globalcoverage/afghanistanpakistan)