Pakistan stocks close lower, rupee steady, o/n flat

Last Updated: Fri, Jun 14, 2013 13:00 hrs

KARACHI, June 14 (Reuters) - Pakistan's stocks closed lower on Friday, though investors believe a reported power tariff hike of Rs2.5/unit could substantially reduce the nuisance of circular debt that is choking the country's power sector and its economy.

However, the dividend paying ability of public sector companies like Pakistan State Oil Co Ltd and Oil and Gas Development Co Ltd may not improve as drastically as the market is pricing in, dealers said.

The Karachi Stock Exchange's benchmark 100-share index closed 0.95 percent, or 216.08 points, lower at 22,541.64.

Pakistan State Oil Co Ltd fell 1.44 percent at 325.65 rupees, while Oil and Gas Development Co Ltd was down 1.5 percent at 251.00 rupees.

The rupee ended almost steady at 98.51/98.56 against the dollar, compared to Thursday's close of 98.50/98.55.

Overnight rates in the money market remained flat at 9.40 percent. (Compiled by the Karachi newsroom)

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