KSE fall further, close at 2-1/2 month low

Karachi Stock Exchange (KSE) fell further on Wednesday to end at a two-and-a-half month low, as investors remain concerned over selling by foreign investors, in line with other regional markets responding to the unfolding crisis in Libya.

World stocks fell further from a recent 30-month high on Wednesday while the euro rose as unrest in Libya drove oil higher and fanned concerns about inflation that could hamper a global economic recovery.

“Concerns that foreign investors will keep selling in our market, in line with the other markets in the region, is the biggest worry for local investors right now,” said Mohammed Sohail, chief executive of brokers Topline Securities.

Foreign investors sold shares worth a net $3.16 million on Tuesday, according to official data.

KSE benchmark 100-share index ended 1.08 percent, or 125.96 points, lower at 11,523.42, its lowest closing since Dec. 7.

Turnover was at 100.49 million shares, slightly lower than 101.46 million shares traded on Monday.

Dealers said concerns over domestic politics as well as the row over a US prisoner were also dampening investor sentiment.