KSE-100 index gains over 2pc to hit year's high

KARACHI : The Karachi share index set another high of the year with a 2.3-percent gain on Friday as investors drew confidence from improving macroeconomic indicators. Despite a long weekend ahead, with the market expected to be closed until next Thursday due to the Eid al Fitr festival marking the end of the Muslim fasting month of Ramazan, cautious book squaring was outweighed by buying. The Karachi Stock Exchange's (KSE) 100-share index closed 214.43 points, or 2.31 percent, higher at 9,436.82 on turnover of 207.3 million shares. The index has gained 60.9 percent this year after losing 58.3 percent in 2008. "It was expected that there would be some profit taking, but instead the local institutions were very active after the encouraging numbers for the current account," said Mohammed Sohail, chief executive at Topline Securities Ltd. Pakistan recorded a current account surplus of $82 million in August, compared with a current account deficit of $606 million in July, the State Bank said on Thursday. Dealers said foreign investors were active in recent sessions, and that had encouraged domestic institutions to buy. According to official data, foreign investors bought shares worth $95.3 million in August and $99.2 million between Sept. 1-17. Dealers also said investors were hoping for positive news from the Friends of Pakistan meeting which is scheduled for Sept. 24 in New York. Among the most active companies, volume leader Jahangir Sidiqui ended 4.99 percent higher at 30.53 rupees, Pakistan Telecommunication Co. Ltd rose 5 percent to 21.21, while National Bank of Pakistan gained 4.9 percent to 84.40 rupees. In the currency market, the rupee ended flat at 82.93/83.03 to the dollar compared with Thursday's close of 82.94/83.00 to the dollar. The rupee has been supported by remittances from Pakistanis working overseas, though dealers expect pressure from importers will weaken the rupee going forward. Remittances rose 31.78 percent to a record $780.53 in August, compared with $592.30 million in the same month last year. The rupee has lost 4.6 percent this year after sliding 22.12 percent in 2008. The State Bank is due to announce its monetary policy for the period to the end of November on Sept. 29 and analysts expect policy rates to remain at 13 percent, or to be cut by 50 basis points. source:-aaj tv.com