ISLAMABAD: Karachi stocks rallied on Friday with investors optimistic ahead of the Pakistan government’s budget announcement, dealers said.

Finance Minister Abdul Hafeez Shaikh is scheduled to announce the country’s budget for fiscal 2012/13 during an evening session of parliament on Friday.

The Karachi Stock Exchange benchmark 100-share index rose 0.66 per cent, or 90.35 points, to close at 13,876.97 on volume of 78.168 million shares, compared to Thursday’s close of 13,786.62 points.

“There was positive sentiment about the budget, which helped lift the market,” said Shuja Rizvi, a dealer at Al-Hoqqani Securities.

The Pakistani rupee closed at 93.63/68, a fifth record low against the US dollar in as many days, compared to Thursday’s close of 93.57/63.

The rupee has faced sustained pressure in the last two weeks because of increased import payments, especially for oil.

Overnight rates in the interbank market closed at 11.50 per cent, down from 11.90 per cent on Thursday, because of increased liquidity in the market.