Pakistani stocks end higher; rupee firms

KARACHI, Nov 4 (Reuters) - Pakistani stocks ended more than 2.4 percent higher on Wednesday on clarity on the political scene and on hopes for an interest rate cut when the central bank announces monetary policy later this month.

The State Bank is due to announce the monetary policy for December and January by the end of the month.

The Karachi Stock Exchange's benchmark 100-share index ended 2.42 percent, or 216.00 points, higher at 9,154.99 on turnover of 108.4 million shares.

"There seems to be some clarity on the political scene in terms of the NRO (National Reconciliation Order) issue," said Sajid Bhanji, a dealer at Arif Habib Ltd.

The government averted a destabilising coalition split on Monday by abandoning a bid to get parliamentary approval for an amnesty from graft charges for the president and other senior politicians. [ID:nSP516264]

Former president Pervez Musharraf introduced the amnesty, known as the National Reconciliation Order, by decree in 2007 but the Supreme Court said in July that it had to be approved by parliament.

Dealers said there were also expectations of a cut in the key policy rate in upcoming monetary policy.

Treasury bill auction bids for 12-month paper were showing a decrease in its cut-off yield. The auction result is due later in the day.

The KSE-100 index is up 56 percent this year after losing 58.33 percent last year.

In the currency market, the rupee ended slightly firmer at 83.63/72 to the dollar compared with Tuesday's close of 83.68/78.

The rupee has weakened 5.42 percent this year after losing 22.12 percent last year.

Dealers expect pressure from importers will further weaken the currency. (Reporting by Sahar Ahmed; Editing by Robert Birsel) (For more Reuters coverage of Afghanistan and Pakistan, see: here)