Pakistani stocks, rupee end weaker after blast

KARACHI, Oct 28 (Reuters) - Pakistani stocks ended lower on Wednesday in low turnover after a car bomb killed more than 80 people and wounded about 100 in a crowded market in the city of Peshawar.

The Karachi Stock Exchange's benchmark 100-share index ended 0.69 percent, or 63.85 points, lower at 9,251.84 on turnover of 128.2 million shares.

The KSE-index has gained 57.74 percent this year after losing 58.33 percent last year.

"Despite strong corporate results and good valuations, the deteriorating law and order situation is keeping fresh investment at bay," said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd.

Dealers said there was no panic selling as market fundamentals were strong but investors were largely on the sidelines because of the worsening security situation.

The blast in Peshawar was the deadliest in Pakistan for two years. The country has been on high alert amid fears of retaliatory strikes by Taliban militants as the army attacks their strongholds in South Waziristan on the Afghan border. [ID:nSP53705]

The KSE-index shed 7 percent last week.

In the currency market, the rupee ended weaker at 83.54/59 to the dollar compared with Tuesday's close of 83.27/37 due to the rising violence as well as import payments.

The rupee has been supported by remittances from Pakistanis working overseas, but dealers expect pressure from importers will weaken the currency.

The rupee has weakened 5 percent this year after losing 22.12 percent last year.

The International Monetary Fund (IMF) approved a $7.6 billion emergency package for Pakistan last November to avert a balance of payments crisis.

The loan was increased to $11.3 billion in July.

Pakistan officials are due to meet IMF officials in Dubai from Nov. 2 to Nov. 12 for a third review of Pakistan's economic performance. (Reporting by Sahar Ahmed; Editing by Robert Birsel) (For more Reuters coverage of Afghanistan and Pakistan, see: here)