Updated :
Friday June 8 , 2012 6:23:20 PM
Pakistan's main stock market fell on Friday, with investors concerned about a legal challenge by opposition parties to the government's capital gains tax reform legislation, dealers said.
The Karachi Stock Exchange benchmark 100-share index dropped 1.16 percent, or 158.6 points, to close at 13,558.7 points on volume of 89.97 million shares.
The capital gains tax reform ordinance aims to promote investment in Pakistan's markets by easing taxation and legal requirements for investors, according to the government.
"News that the CGT (capital gains tax) ordinance has been challenged in the court forced investors to aggressively offload their shares, and across the board selling was witnessed," said Samar Iqbal, a dealer at Topline Securities.
The Pakistani rupee hit a record low against the U.S. dollar, closing at 94.26/34, compared with Thursday's close of 94.08/14.
The Pakistan rupee has been under sustained pressure in recent weeks because of increased payments for imports, especially oil.
Overnight rates in the money market closed lower at 11.50 percent, compared with 11.90 percent on Thursday, because of slightly increased liquidity.
Pakistan's main stock market fell on Friday, with investors concerned about a legal challenge by opposition parties to the government's capital gains tax reform legislation, dealers said.
The Karachi Stock Exchange benchmark 100-share index dropped 1.16 percent, or 158.6 points, to close at 13,558.7 points on volume of 89.97 million shares.
The capital gains tax reform ordinance aims to promote investment in Pakistan's markets by easing taxation and legal requirements for investors, according to the government.
"News that the CGT (capital gains tax) ordinance has been challenged in the court forced investors to aggressively offload their shares, and across the board selling was witnessed," said Samar Iqbal, a dealer at Topline Securities.
The Pakistani rupee hit a record low against the U.S. dollar, closing at 94.26/34, compared with Thursday's close of 94.08/14.
The Pakistan rupee has been under sustained pressure in recent weeks because of increased payments for imports, especially oil.
Overnight rates in the money market closed lower at 11.50 percent, compared with 11.90 percent on Thursday, because of slightly increased liquidity.
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