Pakistani stocks end lower as investors stay away

KARACHI, Sept 12 (Reuters) - Pakistani stocks ended down on Friday in thin turnover as investors worried about economic problems and tension with the United States over security policy stayed away.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.10 percent, 9.47 points, lower at 9,253.92 on turnover of 9.68 million shares.

"The KSE-index is suffering from low volume resulting from a lack of investor confidence," said Sajid Bhanji, a dealer at brokers Arif Habib Ltd.

A row between Pakistan and the United States over how to deal with militants on the Pakistani side of the Afghan border compounded investors' concerns, dealers said.

"This obviously does have a negative impact but it's difficult to predict the affect it has because of the price floor," said Bhanji.

Exchange authorities trying to stop a slide put a floor on the main index late last month at 9,144 points.

The KSE board said this week it would keep the floor as a safety-net to protect shares from plunging further. It will be reviewed on Sept. 25.

The KSE-index has shed 34.3 percent since the beginning of the year and is 41.2 percent lower than a life high set in April.

Dealers also said they had yet to be see any clarity on economic policies following a presidential election on Saturday.

Asif Ali Zardari, the widower of former prime minister Benazir Bhutto, swept to victory in the presidential election having forced former army chief Pervez Musharraf to step down last month rather than face impeachment.

Investors have been hoping the election would end political infighting and allow the government to focus on economic problems.

Pakistan is facing depleting foreign reserves, inflation at more than 25 percent and the rupee near record lows.

Among the most active companies, volume leader National Bank of Pakistan (NBPK.KA) fell 0.04 percent to 93.02 rupees, Fauji Fertilizer Ltd (FAUF.KA) rose 0.5 percent to 101.50 rupees and NIB Bank (NDIF.KA) ended 1.04 percent lower at 8.53 rupees. (Reporting by Sahar Ahmed; Editing by Robert Birsel)