KARACHI: Pakistani stocks rose on Monday, led by cement shares such as D K Khan Cement (DGKC) , Lafarge Pak (LPCL) and Fauji Cement (FCCL) , dealers said.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.29 per cent, or 37.14 points, higher at 12,743.66 points.
Turnover rose to 205.79 million shares, compared with 192.35 million shares traded on Friday.
“DGKC continued to remain in the limelight and closed four per cent up along with LPCL, which also gained four per cent as investors believed that the cement companies profits going forward will further improve,” said Samar Iqbal, a dealer at Topline Securities Ltd.
DGKC closed 3.76 per cent up at 28.18 rupees, LPCL rose 4.74 per cent at 2.65 rupees and FCCL ended 1.67 per cent higher at 4.25 rupees.
In the currency market, the rupee ended weaker at 90.91/97 to the dollar, compared with Friday's close of 90.85/90 because of increased import payments.
Dealers expect pressure on the rupee to persist because of rising international oil prices, which was trading below $125 a barrel on Monday and have gained 16 per cent this year.
The rupee touched a record low of 91.28 to the dollar in January, pressured by worries about higher payments for oil imports and the country's overall economic health.
Islamabad started repaying an $8 billion International Monetary Fund (IMF) loan on Friday with a $399 million payment.
The State Bank of Pakistan cautioned this month that financing the country's projected current account deficit would be a challenge.
The deficit is expected to widen further in the coming months because of debt repayments and a lack of external aid.
The current account recorded a provisional deficit of $2.633 billion in the first seven months of the 2011/12 fiscal year, compared with a deficit of $96 million in the same period last year, according to data from the State Bank of Pakistan.
Dealers said they were also cautious after the IMF advised Pakistan to take immediate steps to tackle growing budget pressures and raise interest rates to contain inflation.
The central bank kept the key policy rate flat at 12 per cent for the next two months in its monetary policy announcement earlier this month.
The IMF in February projected a widening of Pakistan's budget deficit in the 2011/12 fiscal year to seven per cent of gross domestic product, compared with the government's revised budget target of 4.7 per cent.
In the money market, overnight rates rose to 11.90 per cent, compared with Friday's close of 11.75 per cent amid tight liquidity in the inter-bank market.