Pakistani stocks end on highest closing this year

KARACHI, Sept 16 (Reuters) - Foreign investors' appetite for Pakistani energy shares helped Karachi's benchmark index close at its high level this year on Wednesday, though local institutions stayed on the sidelines ahead of a long holiday, dealers said.

The Karachi Stock Exchange's (KSE) 100-share index closed 107.61 points, or 1.19 percent, higher at 9,137.06 on turnover of 120.4 million shares.

The index has gained 55.8 percent this year after losing 58.3 percent in 2008.

"It was an oil-led rally, mainly based on foreign interest, said Sajid Bhanji, a dealer at brokers' Arif Habib Ltd.

The energy sector has the heaviest weighted on the KSE-index.

Rising global oil prices and several small oil and gas discoveries in recent days piqued interest, dealers said.

According to official data, foreign investors bought shares worth $95.3 million in August and $94 million in September.

Dealers said local institutions were cautious ahead of the the long holiday for the Eid al-Fitr festival marking the end of the Muslim fasting month of Ramadan.

The stock market is likely to be closed from Friday to the middle of next week and dealers said it was expected to remain range-bound this week in low turnover.

Among blue-chips, Oil and Gas Development Co. Ltd. (OGDC.KA) rose 2.4 percent to 116.25 rupees, Pakistan Petroleum Ltd (PPL.KA) gained 3.9 percent to 234.70, and Pakistan State Oil (PSO.KA) ended 5 percent higher at 301.28 rupees.

In the currency market, the rupee PKR= ended weaker at 82.73/83 to the dollar compared with Tuesday's close of 82.68/78 due to payments for imports and dealers said downward pressure was expected to continue.

However, the rupee has been supported by remittances from Pakistanis working overseas.

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 4.4 percent this year after sliding 22.12 percent in 2008.

The central 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. (Reporting by Sahar Ahmed; Editing by Simon Cameron-Moore) (For more Reuters coverage of Pakistan, see: here) Link...