Pakistani stocks end lower; rupee flat

KARACHI, Oct 30 (Reuters) - Pakistani stocks ended marginally lower on Friday in low turnover as cautious investors booked profits at higher levels ahead of the weekend.

The Karachi Stock Exchange's benchmark 100-share index ended 0.11 percent lower at 9,159.18 on turnover of 122.58 million shares.

The KSE-index has gained 56.16 percent this year after losing 58.33 percent last year.

"The current security situation has made investors cautious and therefore they are hesitant to enter the market," said Saleem Moon, chief executive at Moonaco Securities.

Dealers said the market fundamentals were strong, but investors were on the sidelines due the country's worsening security situation.

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.

Pakistan's GDP growth is expected to be between 2.5 and 3.5 percent in the fiscal year 2009/10, from 2.0 percent in the previous year, the central bank said in its annual report released on Thursday. [ID:nSIN368564]

"A gradual recovery is underway," the State Bank of Pakistan said in its annual report.

In the currency market, the rupee PKR= ended flat at 83.63/70 to the dollar compared with Thursday's close. This is the weakest level this year.

Dealers expect pressure from importers will further weaken the currency and rising violence could also have a negative affect.

The rupee has weakened 5.42 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 David Fox) (For more Reuters coverage of Afghanistan and Pakistan, see: here)